At the end of the second quarter of 2008, hotel companies were scaling back their projections for the rest of the year to adjust to the recession and corresponding downward trend in travel ["Q2 reports: Outlooks weakening," Sept. 1, 2008, p. 1]. The modification proved a necessary move, as most companies reported losses in Q4 2008. Below are highlights from the top publicly traded hotel companies. Click each company's name to access the full reports.
InterContinental Hotels Group
— Global constant currency revenue per available room up 0.9 percent all year
— Global constant currency RevPAR down 6.4 percent in Q4
— January 2009 global constant currency RevPAR down 12.2 percent (11.7 percent in Americas)
— 85,000 rooms under construction
— 50,000 rooms scheduled to open in 2009
Wyndham Hotel Group
— $170 million in revenue for Q4 2008, a 3-percent decline from Q4 2007
— Systemwide RevPAR decreased 6.4 percent
— Domestic RevPAR decreased 9.3 percent in Q4
— Q4 2008 EBITDA was $38 million, a 22 percent decline compared with Q4 2007, primarily driven by a $16 million non–cash impairment charge and a decline in worldwide RevPAR, partly offset by cost containment initiatives
— A pipeline of approximately 990 hotels and 111,000 rooms, of which 55 percent were new construction and 42 percent were international
Marriott International
— A loss of $10 million in Q4 compared to net income of $236 million in Q4 2007
— 2008 RevPAR fell 2.7 percent vs. 2007 to $95.04*
— 2008 Occupancy dropped 2.7 percent vs. 2007 to 69.2 percent*
— 2008 ADR fell 1.1 percent vs. 2007 to $137.36*
— Marriott’s timeshare segment posted a total loss of $2 million in Q4 2008 compared to net income of $116 million in Q4 2007
— Worldwide pipeline of more than 125,000 rooms
* These numbers represent the composite of all system-wide North American Marriott properties, including Marriott Hotels & Resorts, Renaissance Hotels & Resorts, The Ritz-Carlton, Residence Inn, Courtyard, TownePlace Suites and SpringHill Suites.
Accor North America
— 2008 revenue was reported as EUR7.739 million, down 4.7 percent from EUR8.121 million in 2007*
— According to the company, “reported revenue was negatively impacted by the large number of asset disposals during the year” in addition to unfavorable currency exchanges from the U.S. dollar and British pound against the euro.
— The hotels segment reported 2008 revenue down 1 percent from 2007.
— Economy hotels outside the U.S. grew revenue 3.2 percent over 2007 and upscale and midscale segments outside the U.S. grew 2.6 percent over 2007.
— Revenue from economy hotels in the U.S. declined 2.1 percent in 2008 over 2007.
— The company will reduce its renovation capital expenditure by EUR125 million in 2009.
— The hotels expansion capital expenditure budget, currently set at EUR500 million per year for 2009 and 2010, will be reduced to EUR400 million per year. The upscale and midscale segments will take losses in their expansion capital expenditure budgets as a result. The capital expenditure allocated to economy hotels in Europe will increase EUR 20 million in 2009.
*Accor is based in Paris; numbers are reported in euros
Choice Hotels International
— Adjusted EBITDA was $200.5 million for the year, compared to $198.1 million for the same period of 2007
— Domestic systemwide RevPAR declined 1.8 percent for full-year 2008.
— Operating income for full-year 2008 was $174.6 million, compared to $185.2 million for the same period of 2007
— Domestic unit and room growth increased 6.1 percent and 5.6 percent, respectively, for full year 2008.
-— The number of domestic hotels under construction, awaiting conversion or approved for development declined 2 percent from December 31, 2007, to 987 hotels representing 78,915 rooms
Starwood Hotels & Resorts Worldwide
— Total company adjusted EBITDA was $273 million
— Excluding special items, income from continuing operations was $88 million. Including special items, the loss from continuing operations was $45 million
— Worldwide RevPAR for Starwood branded Same-Store Owned Hotels decreased 19.6 percent compared to Q4 2007
— REVPAR for Starwood branded Same-Store Owned Hotels in North America decreased 18.6 percent
— Management and franchise revenues decreased 4.7 percent compared to 2007
