24 - 26 MAY 2022



World’s largest hotel groups all confirm recovery in Q3 2020



Hilton, Marriott, Accor, IHG and Wyndham have released their financial results

Major hotel groups from across the globe have released their Q3 2020 results, shining a light on the first signs of recovery seen all year.

Though figures are still poor compared to 2019 results, they’re significantly improved in relation to Q2 2020, and show the resilience of the industry’s largest players.

Wyndham Hotels & Resorts, Marriott International, Hilton, Accor and InterContinental Hotels Group (IHG) have all shown signs of optimism.

Read on to see their results.

Wyndham – Strong quarter for conversion signings

Delivering the Q3 2020 results, president and CEO Geoffrey A. Ballotti remained hopeful for the future. He said, “Importantly, we executed 152 hotel agreements, including 23 percent more domestic conversion signings than the third quarter of 2019. As always, we remain dedicated to supporting our owners around the world during these very challenging times.”

Hotel conversions have grown in popularity this year, largely due to the fact global operators have been swallowing up smaller, struggling hoteliers. In October this year, Radisson Hotel Group launched its own conversion brand, offering independent hoteliers the chance to run the Radisson flag.

Wyndham added that its focus on the leisure segment of the market, along with economy and midscale, has helped it start to claw back business in the third quarter. Ballotti said, “In the face of continued industry uncertainty, our leisure-oriented, drive-to franchise business model generated $101 million of adjusted EBITDA and $92 million of free cash flow.

“Over 99 percent of our domestic and over 97 percent of our global portfolio are open today. RevPAR improved sequentially across the globe, and in the U.S., our economy and midscale brands continued to gain market share. Third quarter room openings also improved sequentially both in the U.S. and internationally and we grew our pipeline by 3 percent to 185,000 rooms globally.”

Revenues declined from $560 million in the third quarter of 2019 to $337 million in the third quarter of 2020.

In Q3 2020, Wyndham still managed to open 76 hotels and 9,600 keys, with another 1,400 hotels and 185,000 keys in the pipeline.

Marriott – Continued recovery

Arne M. Sorenson, president and chief executive officer of Marriott International, said, “While COVID‐19 is still significantly impacting our business, our results for the third quarter showed continued improvement in demand trends around the world.”

Third quarter reported net income totalled US$100 million, compared to reported net income of $387 million in the Q3 2019. Third quarter adjusted net income totalled $20 million, compared to third quarter 2019 adjusted net income of $488 million. And, third quarter 2020 impairment charges related to COVID‐19 impacted reported and adjusted net income by $24 million after‐tax.

Marriott’s reported operating income totalled $252 million in the 2020 third quarter, compared to 2019 third quarter reported operating income of $607 million.

Additionally, adjusted EBITDA totalled $327 million in the 2020 third quarter, compared to third quarter 2019 adjusted EBITDA of $901 million.

The company added 127 properties to the portfolio, equal to 19,064 rooms, including 1,400 rooms reflagged from competitor brands. This represents a net room growth of 3.8 percent, said Marriott.

The global development pipeline remains strong, with 2,899 properties and 496,000 rooms in the works, including 1,201 properties with approximately 228,000 rooms under construction and 160 properties with roughly 25,000 rooms approved for development.

Worldwide RevPAR declined 65.9 percent (a 65.9 percent decline using actual dollars). North American RevPAR declined 65.4 percent (a 65.4 percent decline using actual dollars), and international RevPAR declined 67.4 percent (a 67.3 percent decline using actual dollars).

Hilton – Opening plans remain on track

In the third quarter of 2020, Hilton opened 133 new hotels totalling 17,100 rooms, and achieved net unit growth of more than 14,800 rooms.

Christopher J. Nassetta, president & chief executive officer of Hilton, said, “Our third quarter results show meaningful improvement over the second quarter. The vast majority of our properties around the world are now open and have gradually begun to recover from the limitations that the COVID-19 pandemic has imposed on the travel industry, with occupancy increasing more than 20 percentage points from the second quarter.

While a full recovery will take time, we are well positioned to capture rising demand and execute on growth opportunities.”

Since April, system-wide occupancy has increased month over month for Hilton, with the most notable recoveries in Asia Pacific, the U.S. and Europe, with comparable hotel occupancy levels up approximately 32 percentage points, 32 percentage points and 31 percentage points, respectively, from April to September.

For the three and nine months ended September 30, 2020, system-wide comparable RevPAR decreased 59.9 percent and 55.9 percent, respectively, compared to the prior year periods, due to both occupancy and ADR decreases.

Net income (loss) and adjusted EBITDA were US$81 million and $224 million, respectively, for the three months ended September 30, 2020, compared to $290 million and $605 million, respectively, for the three months ended September 30, 2019.

Hilton’s development pipeline boasts 2,640 hotels consisting of more than 408,000 rooms throughout 120 countries and territories, including 33 countries and territories where Hilton does not currently have any open hotels.

Accor – Significant improvements

Revenue in the third quarter of 2020 came in at €329 million, down by 68.7 percent as reported and by 63.7 percent like-for-like. RevPAR also saw sizable drops, falling by 62.8 percent in Q3 2020.

Accor delivered these results confidently, painting Q3 2020 as a quarter of ‘significant sequential improvement’ compared to Q2 2020. RevPAR in Q2 2020 was down by a substantial 88.2 percent for example.

The group opened 57 hotels during the third quarter of the year, equalling 7,800 rooms. By the end of September 2020, Accor was operating 750,135 rooms (5,121 hotels), with a pipeline of 208,000 rooms (1,192 hotels). By the end of September 2020, 90 percent of hotels were open for business, just over 4,600 units.

Accor chairman and CEO Sébastien Bazin said, “Our performances during the third quarter point to a marked recovery of business during the summer season. The worst of the crisis is now behind us, but our main markets are still substantially affected by the measures rolled out to combat the health crisis. Only China reports solid performances and should swiftly recover its activity level pre-crisis.”

“Against this still uncertain context, discipline, adaptability and cost control are critical. We keep transforming our organisations to make the group even more efficient, more agile, and focused on the most profitable and promising markets and segments. We are also deploying additional sources of revenue, in our hotels and in our loyalty programme.”

IHG – Looking ahead

“Trading improved in the third quarter, although progress continues to vary by region. RevPAR declined 53 percent, compared to a 75 percent decline in the prior quarter, while occupancy was 44 percent, up from 25 percent in Q2,” explained IHG CEO Keith Barr.

Europe, Middle East, Asia & Africa (EMEAA) was one of the hardest-hit regions for the group last quarter. However, the Middle East outperformed both Europe and Australia in terms of RevPAR. Q3 RevPAR declined 70.4 percent overall, with Europe down 72 percent, Australia 66 percent and the Middle East 65 percent.

EMEAA occupancy was 31 percent for the quarter overall.

“Domestic mainstream travel remains the most resilient, and our industry-leading Holiday Inn Brand family positions us well to meet that demand as it slowly returns,” added Barr.

“Despite the challenges we’ve faced, we have continued to open new hotels and sign more into our pipeline. This is recognition of consumer preference for our brands and strong owner relationships, and also the long-term attractiveness of the markets we operate in and the relative resilience of our business model. We signed 82 hotels in the quarter, taking us to 263 year-to-date, more than a quarter of which are conversions. As we continue to invest in growth initiatives, we do so with a strict focus on cost reduction and an unwavering commitment to act responsibly for our people, guests, owners and local communities.”

“A full industry recovery will take time and uncertainty remains regarding the potential for further improvement in the short term, but we take confidence from the steps taken to protect and support our owners and drive demand back to our hotels as guests feel safe to travel. Our actions have resulted in ongoing industry outperformance in our key markets, and we remain focused on leveraging the strength of our brands, scale and market positioning to recover strongly and drive future growth.”

“I want to thank all our incredible colleagues and hotel owners for their dedication to creating a clean, safe stay experience that every one of our guests can count on in these uncertain times.”

IHG outperformed competing group Accor by a hair last quarter. RevPAR in Q3 2020 fell by 62.8 percent for Accor compared to IHG’s 53 percent.

One of the world’s largest hospitality groups, IHG has 883,000 keys spread across 5,900 hotels, along with further 288,000 keys and 1,932 rooms in the pipeline.


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