News
Calgary to convert downtown office buildings to homes, hotel rooms
According to CBC News, the city of Calgary has announced its plans to convert three downtown towers into residential housing and hotel units.
Intelligence
U.S. public hotel companies posting strong results
Publicly traded hotel companies are reporting strong quarterly results in general, as published by Hotels Magazine in the U.S.
Current reports include: Hilton Q4 results reinforce RevPAR recovery trend. Strong RevPAR growth in the U.S. drives earnings for Hilton with net unit growth for 2022 estimated at a muted 5 per cent. RevPAR recovery continues to be the story of 4Q21 earnings season with Hilton on Wednesday reporting an increase of 104.2 per cent for Q4 versus last year (-13.5 per cent v. 2019) and a 60.4 per cent improvement for the full year to drive earnings forward due to increases in both occupancy and ADR.
Wyndham has strong 4Q21, launches new extended-stay brand. RevPAR growth and strong ADRs drove Wyndham’s performance and it has buoyed its pipeline by launching a new economy, extended-stay brand. Wyndham Hotels & Resorts reported impressive results for 4Q21 revenue and RevPAR growth on Wednesday and highlighted pipeline growth with the launch of an economy extended-stay brand to meet burgeoning demand. While light on details about the new brand, it is clear Wyndham sees the opportunity in the extended-stay category, especially as U.S. infrastructure spending starts to pick up with construction workers looking for temporary homes.
Host acquires 49 per cent of Noble Investment, reports strong 4Q21. Host Hotels & Resorts announced it has acquired a 49 per cent interest in long-time, respected hotel investor Noble Investment Group, a private equity group that focuses on upscale select-service and extended-stay hotel assets. Considered a strong diversification strategy for Host, the two firms are expected to collaborate and leverage their respective platforms/expertise on asset management, renovation, and investment opportunities.
Marriott beats on revenue jump; 2022 unit growth muted. Strong RevPAR recovery reported on Tuesday by Marriott International helped it beat The Street estimates on results for 4Q21. The company recorded US$4.4 billion in revenue for the quarter, compared to US$2.2 billion a year ago. At the same time, analysts suggested Marriott fell a bit short of expectations for 2022 net unit growth now estimated at 3.5 per cent to 4 per cent versus 6 per cent in 2021.
(SOURCE: Hotels Magazine)
