Select-service hotel brands were Q2 winners

Courtyard by Marriott
Photo Credit: via/

Marriott International, Hilton Worldwide, Starwood Hotels & Resorts and Hyatt Hotels Corp. all reported higher U.S. room revenue in the second quarter, as demand for the hoteliers’ select-service properties continued to grow.

Generally, select-service properties have limited food-and-beverage options but in-room amenities similar to full-service hotels.

Marriott, the largest publicly traded U.S. hotel company, said revenue per available room (RevPAR) growth in North America was 5.4%, slightly ahead of Marriott’s 5.3% global growth rate. Select-service properties in North America collectively had a 6.1% growth rate, led by Courtyard and Residence Inn. The company’s second-quarter net income jumped 25% from a year earlier to $240 million, while revenue advanced 5.9% to $3.69 billion.

Hilton’s global RevPAR increased 5.2% from a year earlier, slightly higher than the 5.1% increase in North America. Select-service brands Home2Suites and Hampton were among Hilton’s fastest-growing brands, with RevPAR improving 9.2% and 5.2% from a year earlier, respectively, while RevPAR for the Waldorf Astoria luxury brand rose 6.2%.

Hilton’s net income fell 23% to $161 million as general, administrative and interest expenses rose faster than revenue, which was up 9.6% to $2.92 billion.

Starwood’s RevPAR at North America hotels advanced 5.3%, higher than its global 4.1% RevPAR growth rate. The company’s select-service Aloft brand had the company’s fastest RevPAR growth rate at 10%.

The company’s net income fell 11% to $136 million after taking a $23 million restructuring charge. Revenue fell 3.8% to $1.48 billion.

Hyatt’s full-service properties slightly outperformed its select-service hotels, though both sectors reflected more demand. Hyatt’s global RevPAR rose 5.6%, spurred by a 7.5% RevPAR increase in U.S. full-service hotels and a 7.2% RevPAR increase in select-service properties.

Hyatt’s net income fell 46% to $40 million as costs from its managed properties rose. Revenue fell 4% to $1.11 billion.


From Our Partners

From Our Partners

2021 Ireland Luxury Marketplace
Ireland Luxury Marketplace: New Webinar Series
Register Now
Los Cabos dining district
Los Cabos' 23400 District
Read More
2021 WOL Webinar
The World of Luxury for 2022
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI