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.