Select-service hotel brands were Q2 winners

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Courtyard by Marriott
Photo Credit: via/Shutterstock.com

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.

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