![[Update] Q2 2023, the hospitality industry keeps up the pace](https://earth-news.info/wp-content/uploads/2023/08/31328-update-q2-2023-the-hospitality-industry-keeps-up-the-pace.webp)
As the end of July approaches, it is the moment for global hotel companies to begin publishing their financial results and performances for Q2.
Hilton continues to benefit from its large global presence
Following a strong performance in Q1, Hilton has followed this up with another impressive financial display. For the second quarter running, the company has raised its full year 2023 outlook.
Hilton reported a 12.1% RevPAR increase versus Q2 2022 and a 9.3% increase vs. the same period in 2019. In terms of revenue, Adjusted EBITDA was $811 million for the quarter just gone (+19.4% vs. Q2 2022), exceeding the high end of guidance. As for net income, it came in at $413 million for Q2 2023.
Hilton opened 14,000 rooms during the second quarter for a net room growth of 11,200 keys in the company’s system.
36,000 new rooms were approved for development, thus growing the company’s pipeline to 440,900 rooms as of 30/06/2023 (up 7% compared to the same date last year).
In May 2023, Hilton launched Project H3, a new apartment-style extended-stay brand.
For the full year 2023, Hilton’s system-wide RevPAR is expected to increase between 10% and 12% vs. 2022. Similarly, Adjusted EBITDA is now projected to be between $2,975 million and $3,025 million.
System-wide comparable RevPAR continued to expand throughout the quarter, experiencing growth across all of our customer segments and regions, driven by strong preference for our brands. Our top line performance yielded meaningful bottom-line results, as we exceeded the high end of our guidance for Adjusted EBITDA and diluted EPS, adjusted for special items. We continue to drive long-term growth of our global network through the launch of strategic, new brands and have already added over 60,000 rooms to our development pipeline during 2023.
Christopher J. Nassetta, President & CEO of Hilton
Wyndham Hotels & Resorts keeps up steady growth
For Wyndham, global RevPAR grew by a reported 7% when compared to Q2 2022. Regarding revenues, Adjusted EBITDA was $158 million compared to $175 million in second quarter 2022, representing an 8% year-over-year increase.
Net income, on the other hand, declined in Q2 2023. It was down $22 million to a total amount of $70 million over the second three months of 2023.
Wyndham signed 24,000 rooms during the period, which equates to 6% growth vs. Q2 2022 and 7% growth compared to the same period in 2019.
In July 2023, the company was awarded 60 new construction projects for ECHO Suites Extended Stay by Wyndham. Its total number of contracts now stands at 265.
It should be noted that comparisons with Wyndham’s second quarter results are impacted by the sale of its owned hotels and the exit of its select-service management business, both of which occurred in 2022.
During the second quarter, we celebrated the tremendous progress we’ve made in our five-year journey as a new public company with another quarter of solid results including global RevPAR growth of 7%, net room growth of 4% and the 12th consecutive quarter of sequential growth in our development pipeline, which has never been stronger. International travel demand continues to accelerate, our US economy brands continue to outperform the industry and our nation’s infrastructure bill spend is expected to represent a meaningful tailwind for our franchisees in the months and years ahead. We remain very confident in our ability to deliver outstanding value for our franchisees and shareholders, as does our Board of Directors who today approved a $400 million increase in our share repurchase authorisation, reflecting their confidence in the ongoing strength of our business and our strong free cash flow.
Geoff Ballotti, President & CEO of Wyndham Hotels & Resorts
Meliá Hotels International continues to see demand
For the 4th consecutive quarter, Meliá has seen its RevPAR surpass that of 2019. In the quarter just gone, RevPAR for owned and leased properties grew by 15.4% on a year-to-year basis compared to Q2 2022, and by 25.5% compared to the same period in 2019.
The company’s net income for Q2 2023 was reported at €49 million, thus confirming a return to operating normality.
Consolidated revenue in the quarter came in at €513.7 million, however there is still room for growth considering occupancy figures were down 7.7% vs. pre-Covid levels.
At the end of the quarter, Meliá’s reservations on the books to year end are up more than 20% on the global figures for 2022.
Gabriel Escarrer Jaume, Chairman & CEO of Meliá Hotels International stated: “The Group’s performance in the first half of the year continued to benefit from the recovery dynamics that began 15 months ago now, with the second quarter recording a very positive level of revenue, and so far, we have not seen any signs of a slowdown despite macroeconomic uncertainty.”
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