Starwood Hotels & Resorts, Wyndham Worldwide and Choice Hotels International all reported improved third-quarter earnings, reflecting the continued rebound in global lodging demand in sectors ranging from budget to luxury.
Starwood Hotels & Resorts, the third-largest U.S.-based hotel company behind Marriott International and Hilton Worldwide, said it turned a Q3 profit on increased demand for its luxury and upscale hotels worldwide, except Africa and the Middle East. The company also boosted its full-year profit forecast.
Net income was $163 million, compared with a loss of $6 million a year earlier, while revenue rose 9.3%, to $1.37 billion, beating the $1.36 billion average estimate in a Thomson Reuters survey.
Revenue per available room in Latin America surged 19% from a year earlier, while North America RevPAR was up 7.8%. Excluding the still-recovering Japan and Shanghai, where the World Expo was held last year, Asia-Pacific RevPAR rose 16%.
Additionally, RevPAR for Starwood's W Hotels chain jumped 11% from a year earlier, while RevPAR at Starwood's Westin and Sheraton hotels each rose more than 7%. At Starwood's Aloft boutique badge, RevPAR surged 14%.
As for specific markets, Phoenix, Honolulu and San Francisco led North America RevPAR gains, Starwood CEO Frits van Paasschen said on a conference call with analysts Oct. 27. Outside of the U.S., Paris, Barcelona, Rio de Janeiro and Doha, Qatar, were particularly popular destinations. Overall, global RevPAR increased 7.4%, he said.
Starwood also boosted its full-year earnings forecast. Profit, excluding certain items, will be about $1.77 a share, up from Starwood's July forecast of about $1.72 a share.
"Even in a lackluster economy, both corporate and leisure customers are doing pretty well and traveling," van Paasschen said.
Wyndham income up 12%
Meanwhile, Wyndham Worldwide's Q3 income rose 12% from a year earlier, to $175 million, on steady demand increases for its hotels and a jump in profit from its timeshare division.
Wyndham's lodging division revenue rose 9% from a year earlier as companywide RevPAR rose 4.8%.
The company said RevPAR at Wyndham-branded properties was up about 8%, while RevPAR at Wyndham's Ramada hotels jumped 11% from a year earlier. Additionally, earnings from Wyndham's timeshare unit surged 30% on a combination of higher sales and favorable currency changes.
Wyndham also boosted its full-year forecast for profit, excluding certain items, by 3%, to about $2.46 a share.
Choice boosts royalty fees
Choice Hotels International's Q3 income rose 4.5% from a year earlier as the company boosted royalty fees from franchised limited-service hotels such as the midscale Comfort Suites and budget Rodeway brands while cutting costs as a percentage of revenue.
Net income increased to $42.3 million, from $40.5 million a year earlier, while revenue rose 4.6%, to $192.3 million. Royalty fees were up 6.6% as RevPAR at Comfort Suites and Rodeway increased 7.5% and 6.4%, respectively.
Overall, RevPAR increased 5.4% from a year earlier on increases in both room rates and occupancy. The company forecasted Q4 RevPAR would increase 6.5%.
Meanwhile, Choice Hotels cut selling and administrative costs while marketing and reservation expenses rose just 1%.
Choice was expected to earn $193.6 million in revenue, the average analyst estimates in a Thomson Reuters survey.
IHG RevPAR up
U.K.-based InterContinental Hotels Group, the world's largest hotel group by rooms, said last week that U.S. RevPAR advanced 8% from a year earlier as demand for its luxury, midscale and extended-stay hotels experienced record demand.
Specifically, IHG's flagship luxury badge had a 9.5% jump in RevPAR, while the company's Holiday Inn Express and Candlewood Suites RevPAR advanced 8.7% and 11%, respectively. IHG will release its full Q3 financial results Nov. 8.
For hotel and hospitality news, follow Danny King on Twitter @dktravelweekly.