Marriott, Hyatt Earnings Continue Hospitality Industry’s Recovery

Hotel and resort companies continue to raise annual profit forecasts and exceed third-quarter benchmarks based on higher pricing and a strong rebound in leisure and business travel.

Marriott International announced in a third-quarter earnings call that it expects adjusted profit per share of between $6.51 and $6.58 this year, compared with its previous forecast of $6.33 to $6.59 per share.

The company revealed third-quarter comparable systemwide RevPAR increased 36.3 percent worldwide, 28.5 percent in the United States and Canada and 66.1 percent in international markets, compared to the 2021 third quarter.

Officials also announced Marriott added roughly 14,000 rooms globally during the third quarter, including approximately 8,700 rooms in international markets and nearly 3,900 conversion rooms.

“In the U.S. & Canada, our largest region, RevPAR exceeded 2019 levels by 3.5 percent in the third quarter,” Marriott CEO Anthony Capuano said. “Occupancy in the region has been rising throughout the year, reaching 72 percent in September, just two percentage points below the same month in 2019.”

“Leisure transient demand remained very robust, and group RevPAR more than fully recovered to 2019 levels in the quarter,” Capuano continued. “Business transient demand, though still lagging in recovery, continued to improve.”

In addition, the Hyatt Hotels Corporation reported third-quarter financial results, with net income totaling $28 million compared to net income of $120 million in the third quarter of 2021. Adjusted EBITDA was $252 million in the third quarter compared to $110 million last year.

Comparable systemwide RevPAR increased 45.9 percent to $133.31 and comparable U.S. hotel RevPAR increased 35.6 percent to $147.70 in the third quarter compared to the same period in 2021.

“We had a tremendous quarter that demonstrates our unique positioning and differentiated model,” Hyatt CEO Mark Hoplamazian said. “We reported total fee revenue that exceeded 2019 by 50%, raised our full year 2022 Net Rooms Growth outlook to approximately 6.5%, and expanded our pipeline to 114,000 rooms.”

“We continue to see demand accelerating and our outlook remains optimistic based on our latest booking trends,” Hoplamazian continued.

Last week, Hilton Worldwide Holdings announced its third-quarter earnings topped estimates as fewer pandemic-related concerns and restrictions have caused a surge in domestic and international travel.

The company said the third-quarter EBITDA was $732 million and exceeded the high end of guidance, while systemwide comparable RevPAR increased five percent compared to the same period in 2019 and 29.9 percent in 2021.

IHG Hotels & Resorts also revealed last week that its third-quarter business travel revenue in the Americas region had climbed back to 2019’s pre-pandemic levels. The company reported a systemwide RevPar year-over-year increase of 27.4 percent, an average daily rate gain of 12.6 percent and occupancy levels up 7.8 percentage points to 67.6 percent.