With Deal Leverage Shifting to Buyers and Financial Sources, All Eyes are On Hospitality Prognosis for 2023
Keith Worsham | November 15, 2022
Sonnenblick-Eichner Company Arranges $30,500,000 of First Mortgage Financing for Little Palm Island Resort & Spa, Florida Keys, Florida
Sonnenblick-Eichner Company | January 12, 2021
Finance
Sonnenblick-Eichner Company Arranges $22 Million of First Mortgage Leasehold Financing for DoubleTree by Hilton Los Angeles-Commerce, Los Angeles, CA
Sonnenblick-Eichner Company | November 29, 2022
Beverly Hills, CA (November 29, 2022) -- Sonnenblick-Eichner Company announced today that it has arranged $22 million of non-recourse first mortgage financing for the leasehold interest in the Doubletree by Hilton Los Angeles-Commerce, a 201-room hotel located in the city of Commerce, approximately six miles southeast of downtown Los Angeles. The five-year loan was placed with an international money-center bank at a fixed interest rate of 5.9% for the entire term. Proceeds were used to pay off a maturing CMBS loan and provided for a return of equity to the partnership. Amenities at the hotel include a full-service restaurant and bar...
With Deal Leverage Shifting to Buyers and Financial Sources, All Eyes are On Hospitality Prognosis for 2023
Keith Worsham | November 15, 2022
By Keith Worsham In this article we take a look at the shifting landscape of hospitality industry transactions as post-pandemic travel trends begin to reveal themselves and operators grapple with the ramifications of more than two years of RevPAR setbacks. A Post-Pandemic Comeback... Of Sorts Prospects for the hotel industry going into 2023 fall somewhere between somewhat rosy and risky. The hospitality industry gathered in mid-August at the 14th Annual Hotel Data Conference in Nashville, Tennessee to discuss the near-term outlook, and as the editors of Hotel News Now (HNN) shared, “Speakers…acknowledged that the industry still is...
Controlling U.S. Hotel Utility Costs
Robert Mandelbaum | November 10, 2022
By Robert Mandelbaum and Ethan Gabany Annual changes in U.S. hotel utility costs and in the Consumer Price Index (CPI), or inflation, have historically proven to be strongly correlated. As of August 2022, CBRE is forecasting CPI growth to be 7.7 percent in 2022, followed by another 3.6 percent in 2023. Since inflation has averaged just 2.2 percent since 2000, these inflation projections have hoteliers concerned about operating costs. Given that rising energy costs are a significant driver of the current rise in CPI, hotel managers are especially worried about utility department expenses. Over the past 50 years, utility department expens...
The 2023 Annual Budget – A Captivating Story of Intrigue and Suspense
Gary Isenberg | November 10, 2022
By Gary Isenberg As summer tumbles into fall, hotel asset managers are challenged with reviewing and approving annual budgets. As they analyze page after page of next year’s proposed budgets from their management companies with input from all facets of hotel operations — from housekeeping and F&B to maintenance and marketing — hotel and resort asset managers ought to look beyond the spreadsheets and revenue projections before concluding whether they have a best-seller on their hands. In the case of a hotel budget, the primary focus is on the revenue goal and the strategy of how it will be achieved. Since all good stories have ...
Frontline Success Leader Beekeeper Lands $50 Million Series C
Beekeeper | November 9, 2022
Beekeeper doubles revenue over the pandemic, captures more than $100M in total funding and launches new product suite SAN FRANCISCO and ZURICH, Nov. 9, 2022 — Beekeeper, the leading frontline success system, today announced it has raised $50 million in Series C funding after more than doubling revenues since the start of the pandemic. New investors like EGS Beteiligungen and Kreos Capital joined the round alongside existing investors Energize, Thayer, SwissCanto, Keen Ventures, Alpana Ventures, Edenred Capital and Verve Capital. Beekeeper plans to use this round of funding to grow, continue to invest in product development and establish it...
Choice Hotels International Reports 2022 Third Quarter Results
Choice Hotels | November 7, 2022
ROCKVILLE, Md., Nov. 7, 2022 -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, reported its results today for the three months ended September 30, 2022. "Our third quarter results and the acquisition of the Radisson Hotels Americas business are a significant leap forward in the evolution of both Choice Hotels' competitive position and future growth potential. For 11 consecutive quarters, our RevPAR growth has outperformed the hotel industry, confirming that our strategy of focusing our investments and growth on RevPAR accretive hotel segments and locations is working. Our future growth is...
GuestTek Announces Its Banking Relationship With Bank of Montreal
GuestTek | November 7, 2022
7 November 2022, Calgary, Alberta, Canada –– GuestTek Interactive Entertainment Ltd., the global leader in providing innovative and interactive technology solutions for the hospitality industry, is pleased to announce the refinancing of USD $25.0 million to a senior secured credit facility with Bank of Montreal for long-term operations and corporate growth. With principal operations located in Canada, Europe, Asia, and the United States, GuestTek’s focus on hospitality means we fully understand and deliver on the technology needs of today’s hotel guests, while engineering the in-room technologies desired by tomorrow’s guests. Our...
Total Spend Can Be Your Friend
Matt C. Panosh | November 4, 2022
By Matt C. Panosh I have always thought that stock traders would make great hotel revenue managers. They are highly competitive people, they understand optionality and risk, but most importantly, they know that when market volatility is large, the price of a financial instrument contains little or no information. Traders would have known instinctively what the pandemic should have taught hoteliers: asset valuations highly dependent on the average daily rate (ADR) contain risk; therefore, revenue diversification is not only desirable, but necessary. Unfortunately, the salary discrepancy between Wall Street trader and hotel revenue manager i...
Hyatt Reports Third Quarter 2022 Results
Hyatt Hotels Corporation | November 3, 2022
CHICAGO (November 3, 2022) - Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported third quarter 2022 financial results. Highlights include: Net income was $28 million in the third quarter of 2022 compared to net income of $120 million in the third quarter of 2021. Adjusted net income was $72 million in the third quarter of 2022 compared to Adjusted net income of $241 million in the third quarter of 2021. Diluted EPS was $0.25 in the third quarter of 2022 compared to $1.15 in the third quarter of 2021. Adjusted Diluted EPS was $0.64 in the third quarter of 2022 compared to $2.31 in the third quarter of 2021. ...
Marriott International Reports Outstanding Third Quarter 2022 Results
Marriott International | November 3, 2022
Marriott International, Inc., (NASDAQ: MAR) today reported third quarter 2022 results. Anthony Capuano, Chief Executive Officer, said, “We are very pleased to report another quarter of outstanding results. Global RevPAR1 more than fully recovered, rising nearly 2 percent above 2019. In the third quarter, RevPAR compared to 2019 improved sequentially from the second quarter in every region around the world. “In the U.S. & Canada, our largest region, RevPAR exceeded 2019 levels by 3.5 percent in the third quarter. Occupancy in the region has been rising throughout the year, reaching 72 percent in September, just 2 percentage poin...
Wyndham Hotels & Resorts Reports Third Quarter 2022 Results
Wyndham Hotels & Resorts | October 27, 2022
Company Raises Full-Year 2022 Outlook Board Increases Share Repurchase Authorization by $400 Million Company Grows System-Wide Rooms by 4% and Development Pipeline by 10% PARSIPPANY, N.J., Oct. 27, 2022 -- Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended September 30, 2022. Highlights include: Global RevPAR grew 12% compared to third quarter 2021 in constant currency. U.S. RevPAR grew 2% compared to third quarter 2021 and represents 110% of 2019 levels. System-wide rooms grew 4% year-over-year, including 1% of growth in the U.S. and 9% of growth internationally. Development pipeline ...
Hilton Reports Third Quarter Results; Exceeds Expectations
Hilton | October 26, 2022
MCLEAN, VA - Hilton Worldwide Holdings Inc. ("Hilton" or the "Company") (NYSE: HLT) today reported its third quarter 2022 results. Highlights include: Diluted EPS was $1.26 for the third quarter, and diluted EPS, adjusted for special items, was $1.31 Net income was $346 million for the third quarter, exceeding the high end of guidance Adjusted EBITDA was $732 million for the third quarter, exceeding the high end of guidance System-wide comparable RevPAR increased 29.9 percent, on a currency neutral basis, for the third quarter compared to the same period in 2021 System-wide comparable RevPAR increased 5.0 percent, on a curren...
Hotel Franchising Gives Operators Support and Confidence in Tough Times, Finds HVS Study
HVS | October 21, 2022
21 October 2022, London: The pandemic has prompted many hoteliers, both independent and chain operators, to recognise the value of brand affiliation prompting a growing interest in hotel franchising across Europe, says a new report from global hotel consultancy HVS. “The past few years has opened the eyes of many operators to the benefits of having strong support and communication in tough times, as well as the importance of maintaining consumer confidence. Large brands have been major instigators in negotiating with industry associations and local governments to provide support to their franchisees and this has persuaded many independ...
Agilysys to Report Fiscal 2023 Second Quarter Results October 25th and Host Conference Call and Webcast
Agilysys | October 12, 2022
ALPHARETTA, GA. — October 12, 2022 — Agilysys, Inc. (AGYS), a leading global provider of hospitality software solutions and services that deliver High Return Hospitality, announced today that it will release its fiscal 2023 second quarter results after the market closes on Tuesday, October 25th, 2022 and host a conference call and webcast at 4:30 p.m. ET that day. Both the call and webcast are open to the public. All participants should register for the call using the participant registration URL: https://register.vevent.com/register/BIc5caabb8028c469696a4afbc87dc28da. Once registered, participants will receive a confirmation email...
Hospitality Financial Leadership: What Really Counts and Why
David Lund | October 10, 2022
By David Lund If you do not have all three of these metrics on your radar screen at the same time, you are flying the profit picture in your food operation with at least one eye closed. All three metrics must work together at the same time to get the best view of the potential profitability of your food sales. Let’s explore these three different measurements and see what we find. Average Customer Cover The first part is “average customer cover spend” or ACCS. That is the average amount of food sales per person served. To calculate this, you take the total food sales (only items in the food family) from a given period and divide...
Managing Hotels Through High Inflation: a Game of Maximizing Revenues and Controlling Costs, Hears HVS Seminar
HVS | September 22, 2022
22 September 2022, London: The biggest challenges affecting hotels through this period of high inflation relate to the cost of labour, rising energy prices, coping with supply chain issues, the cost of debt and uncertainty that makes budgeting for the year ahead almost impossible. Discussing these issues at a seminar in London last week ‘Managing and financing hotels through ultra-high inflation’, organised by HVS, Bird & Bird, EP in Hospitality and AlixPartners, an impressive line-up of experts discussed the current challenges facing UK and European hotel revenues, costs and profitability, as well as the impact on M&A activ...
Sonnenblick-Eichner Company Arranges $82.425 Million of First Mortgage Financing for the Ocean Key Resort & Spa Key West, FL
Sonnenblick-Eichner Company | September 14, 2022
Beverly Hills, CA (September 14, 2022) -- Sonnenblick-Eichner Company, on behalf of Noble House Hotels & Resorts, has arranged $82.425 million of fixed rate first mortgage financing for the Ocean Key Resort & Spa in Key West, FL. Ocean Key Resort and Spa is a 100-room, full-service, waterfront resort recently honored by Forbes as the Best Luxury Resort in Key West. Proceeds from the five-year, non-recourse loan priced in the low 5% range, will be used to pay off and defease the existing loan and fund a $10.5 million renovation of the property. The life insurance company loan is interest-only for the entire term. Amenities a...
Hotel Budget Guide for 2022: Everything You Need to Know
September 12, 2022
By Josiah Mackenzie With David Lund I used to think of the budgeting process as a necessary evil, but speaking with David Lund, who has 30+ years of operational and financial leadership experience working with companies such as Hilton, Best Western, and Fairmont Hotels and Resorts, changed my view on this. In his view, hotel budgeting is a way to engage your teams, align on goals, and deliver financial results. The hospitality industry has experienced unprecedented volatility over the past few years, which may make creating a budget for 2023 seem intimidating. But as Lund advises, “the only thing we know about a budget is that it...
HVS Monday Musings: Income Capitalization Approach – The Gold Standard for Valuing Hotels
Anand Rai | August 29, 2022
By Anand Rai According to a recent GlobalData report, 573 deals (including mergers & acquisitions, private equity, and venture financing) were announced in the global travel and tourism (T&T) industry in the first half of 2022, reflecting a 3.1% increase over the same period last year. However, before these deals are concluded, the asset needs to be valued. So, how do we determine a hotel's market value and what exactly is valued under the category of hotels? The main valuation techniques are briefly covered in this article. The hotel’s market value takes into account the value of all of its different components, including th...
Hospitality Financial Leadership: What Hotel Brands Don’t Know – The Secret to Creating Great Financial Expertise
David Lund | August 15, 2022
By David Lund What brands don’t know is, they can create great financial bench strength in their hotels and their owners will pay 100% of the cost. Brands also don’t know that they can create this bench strength with resources that are readily available. Lastly, brands don’t know that their non-financial managers are literally dying to get these financial skills and abilities now and they want to apply them. Brands need to evolve. Brands need to stand still long enough to realize they sell one thing to owners, expertise in running and managing hotels. Brands sell expertise for all aspects of running and managing a hotel. Not just ...
Smart Benchmarking Starts With the Right Compset
Eula Skiles | August 15, 2022
By Eula Skiles Setting up a right profitability management approach starts with understanding your market and benchmarking against the right hotels. It’s also a way to attract the right guests. One of the best ways to do that is identifying the hotels that are most like your own vis-à-vis key count, F&B services and outlets, conference space and other offered amenities. In the hospitality industry, choosing a compset if the first step toward a winning market-share formula. For a consumer, one of the biggest costs of travel is booking a hotel room. The pricing trends of hotel rooms stem from a complex business strategy. In order t...
Hyatt Reports Second Quarter 2022 Results
Hyatt Hotels Corporation | August 11, 2022
Total Fee Revenue More than Doubles from Last Year; Reaches Record Level System-wide RevPAR, Excluding Greater China, Above 2019 CHICAGO (August 11, 2022) - Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported second quarter 2022 financial results. Net income attributable to Hyatt was $206 million, or $1.85 per diluted share, in the second quarter of 2022, compared to a net loss attributable to Hyatt of $9 million, or $0.08 per diluted share, in the second quarter of 2021. Adjusted net income attributable to Hyatt was $51 million, or $0.46 per diluted share, in the second quarter of 2022, compared to Adjusted net l...
IHG Releases Half Year 2022 Results
IHG | August 9, 2022
REPORTABLE SEGMENTS1: Reported Underlying1 2022 2021 % change2 % change Revenue1 $840m $565m +49% +53% Revenue from fee business1 $664m $505m +31% +33% Operating profit1 $377m $188m +101% +91% Fee margin1 55.9% 44.1% +11.8%pts Adjusted EPS1 121.7¢ 40.4¢ +201% GROUP RESULTS: Total revenue $1,794m $1,179m +52% Operating profit $361m $138m +162% Basic EPS 117.4¢ 26.2¢ +348% Interim dividend per share 43.9¢ - ¢ NM Net debt1 $1,718m $2,458m (30)% KEY METRICS: $11.7bn total gross r...
Accor: Half-Year 2022 Very Strong Rebound of the Activity With Q2 Above 2019 Level
Accor | July 28, 2022
Q2 REVPAR ABOVE 2019 LEVEL SIGNIFICANT IMPROVEMENT IN PROFITABILITY AND CASH FLOW GENERATION REVENUE UP 109% TO €1,725 MILLION (+97% LFL) EBITDA POSITIVE AT €205 MILLION NET PROFIT GROUP SHARE POSITIVE AT €32 MILLION Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said: “Once again this quarter, Accor reported a very strong growth in business, exceeding pre-crisis levels for the first time. This marked rebound in all regions and for all of our brands. The summer will confirm these trends and the fall promises to be strong with the recovery of major seminars and conventions. Nevertheless, the Group remain...
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