Hotel Industry’s 4th-Quarter Earnings Highlight Continued Recovery

Share

Opened door of hotel room in morning

Some of the biggest companies in the hotel industry have reported increased profits during the final quarter of 2021, indicating a strong finish to the year could carry over into a successful 2022.

Hilton Worldwide Holdings Inc. reported its fourth-quarter results on Wednesday, which showed a quarterly profit of $148 million, which mas a massive increase from the loss of $225 million during the same quarter in 2020.

In total, Hilton officials revealed revenue of $1.84 billion, up from $890 million the previous year and topping the $1.8 billion estimate predicted by hotel industry experts.

During Wyndham Hotels’ fourth-quarter call, officials reported the company posted revenues of $392 million, surpassing the expert estimates by 4.21 percent and topping the $296 million in revenues during the same period in 2020.

The company has topped consensus revenue estimates just once over the last four quarters, indicating a strong increase in demand thanks in part to rising vaccination rates around the world and a busy winter holiday travel period.

Officials from Marriott International recently announced that revenue for the fourth quarter of 2021 topped estimates and reached $4.45 billion. The company beat analyst estimates of $3.99 billion for the three-month period ending December 31.

Marriott Chief Executive Officer Anthony Capuano said new bookings have rebounded to pre-Omicron levels, and the company remains optimistic about global travel demand recovery throughout 2022.

While other companies showed growth in the fourth quarter, Hyatt Hotels Corp. reported a loss of $29 million to end 2021. Adjusted net loss attributable to Hyatt was $306 million in the fourth quarter.

The hotel operator posted revenue of $1.08 billion in the period, which did not meet Wall Street forecasts of around $1.15 billion. For the year, the company reported that its loss narrowed to $222 million, while revenue topped $3.03 billion.

In January, a report from the American Hotel & Lodging Association (AHLA) predicts that 2022 will see the hotel industry continue on a path toward recovery from COVID-19’s disastrous impact, but that the road ahead is sure to be bumpy and somewhat unstable.

Share