Growing fast - Hilton and Wyndham were keen to shout about their growth figures in recent results. Wyndham spent time contrasting its numbers with those of suitor Choice…Business on the books in Europe is strong, say Pandox, Scandic and STR. And China is back, as noted by IHG and Accor in Q3 numbers - with more to come, as airlift is still rebuilding capacity.
Our thoughts on the big consolidation deal - will Choice swallow Wyndham? AccorInvest looks to slim down, and trim debt, as it seeks to slip away from Accor. And Whitbread looks to find the love for Premier Inn in Germany.
While recent studies paint a rosy picture for the hotel sector, we wonder what the latest issues in and around Israel will deliver to those operating in the region. In the UK and Europe, deals look to be happening again, as issues around inflation and debt are put into perspective. And third party operators spread their wings, as owners learn they can earn more from their assets.
Thoughts from Marriott on how it intends to grow over the next three years, as it launches an underwhelmingly named new brand. More from the Operational Real Estate festival, on how traditional real estate asset classes are losing their appeal. Why all-inclusive continues to be an attractive market sector. And thoughts on the impact of the latest conflict in Israel.
Reflections from the Operational Real Estate Festival. Accommodation alternatives Selina, Soho House and Sonder wrestle with the challenges of growth, and delivering profits - investors like the first, but will ultimately demand the second. And luxury hotels look to be ever in demand, not just from well-heeled guests, but with investors too.
The deals market has been becalmed by higher interest rates, will it now ease? The challenge of demonstrating the economic positives of travel. PPHE and Dalata look confidently ahead; PPHE has a strong brand deal, would Dalata benefit from something similar? And we chew over the frustrations of drip pricing.
Across the piece, all sorts of buildings with beds - from private rental to student accommodation, as well as hospitality - are impacted by either too much, or too little, regualation. In China, indebted developers are casting a shadow over hotel development for the international brands. And hotels return to normalcy, albeit with some tailwinds still to come from the business travel market.
Conversions are the key for hotel brand groups, as new development volume reduces - and IHG is on the front foot with new conversion brand Garner. Marriott has put its money on MGM and its major US resorts in Las Vegas and elsewhere - will Convoy members be able to gamble their points in future? And as online travel agents register record performance figures, the clouds gather over Airbnb.
Ahead of the Annual Hotel Conference in Manchester, we welcome Joe Stather of Questex to discuss findings of Questex's latest quarterly investor sentiment survey; moderating demand, a withering tailwind as business demand starts to level off, and investors still staring at the bid-ask spread and wondering at what price they can get back into the market. The Annual Hotel Conference takes place in Manchester 11-12 September.
Big guns Accor and Hilton delivered strong Q2 figures, but the market prefers Hilton shares to those from Accor right now. India looks a stronger medium term opportunity than China, and its ITC brand is now emerging from its conglomerate parent. And in China, H World’s results reveal a strong snap back in occupancy, as Wyndham, too, likes the look of further growth in the country.
Deal volumes more than halved in the first half of 2023, as investors got their heads around rising debt costs - and owners resisted selling as they carried on trading positively. But things may pick up in the second half. Data from Booking.com and Amadeus point to a continuing strong 2023 for trading, well ahead of previous expectations. And we walk through the first half year results, from Scandinavian groups Pandox and Scandic.
Accor continues to reinvent itself as a lifestyle and luxury player. But why is it not shouting louder about its successful and dominant economy brands? Debt is getting more expensive, with refinancing tougher to negotiate - what will be the impact on the hotel sector? And experiences, hospitality and leisure increase their presence in former retail spaces, helping to reinvent town and city centres.
Is the glass half empty, or half full? A quick debate over the latest views of the UK hotel market, as investors adjust to the new normal - and wonder about upping their activity once more. Alternatives are thriving, notably hostels - so why are these businesses still largely the preserve of private equity? And as the Chinese get out and about once more, how will this massive tourism market spread around the world, after the pandemic?
Tougher lending conditions are forcing mid market hotel groups to dispose of individual properties, to buttress balance sheets ahead of refinancing discussions. With Travelodge and Village Hotels now quietly being offered for sale, who has deep pockets and a strong constitution? And new arrivals in the OTA space promise hard-up consumers a better deal, often on a subscription-only basis.
As we’re told investors are lining up to put funds into co-living developments, how big could this niche be? Or is it simply a stop-gap solution to a broader housing market failure? Airlines have struggled to get back in the air, but now they’re making money - and, like hotels, wondering how to deliver real value to the consumer. And as more companies commit to going green, the space remains a complex one with few absolute metrics, fast changing technology - and a fair dose of greenwash, too.
Rumours swirl around a possible merger of Choice and Wyndham. Hotels wrestle with how to do wellness properly, and profitably. And consumers want more personalisation - how can hotels tackle the challenge successfully?
Picking apart views from the Berlin conference - optimistic overall, but aware of debt challenges ahead. Federico Gonzalez takes a second job, heading Louvre as well as Radisson - what’s he likely to do with Jin Jiang’s big Western investments? And economy secctor operators Travelodge and Motel One shine a light on the resilience of the low cost operators.
Everyone in investment is adapting to the new normal of inflation, and debt that’s more expensive, and harder to find. India, as it becomes the world’s most populous country, looks an increasingly interesting market for both domestic hotel groups and international brands. And market newcomers Soho House, Sonder and Selina display contrasting roadmaps to profitability.
The Ascott shows everyone how serviced apartments are done - as the big US groups line up to launch new apartment brands. Hyatt's acquisition pace shows no signs of slowing up, as it buys an umbrella brand. And as Keith Barr departs IHG, will it finally move its presence, and its listing, to the US?
It's been a strong results season for the listed hotel groups, so what are they going to do to move the needle from here on? We muse on Whitbread and its expansion into Germany; Marriott and Hilton, both deciding to launch new, economy extended stay brands as they move downmarket; and chew over stellar results from Wyndham and Accor, both enjoying an uplift from a strong snapback in Asia.
Investors pile into luxury and lifestyle hotels - and we look to LVMH for further brand inspiration, while speculating on Accor’s future, too. Integrated resorts - complete with a casino - look to be moving forward both in Europe, and in Japan too, but pushing them to delivery is hard work. And Spain is enjoying an influx as the international brands take over hotels that were previously independently owned. The move is accelerating…
Who's winning the distribution game, as international travel opens up once more. Simple answer, Google - but what else is going on? Pubs with rooms get their act together, they're more boutique than budget accommodation these days. And the UK government makes clear the direction they want to head as they clarify regulation of short lets.
It’s getting harder, and more expensive, to borrow funds for hotel investment - and that’s no bad thing, we argue. Germany has seen its hotel market come back, good news for operators including Motel One and Deutsche Hospitality; but will DH remain in the ownership of Chinese group H World, or is the moment approaching for a sale? And can hotels be part of the revival of the UK’s ailing high streets? Travelodge is making a strong pitch to help out.
Real estate investment values have been dropping, notably across retail and offices, as hotels are holding strong. Is the glass half empty, or half full? The sustainability debate - and where the hotel sector may face significant threats in the future. And Asian hotel groups finally get to see an uptick in business, as China eases open once more. The rest of the world will benefit, too, as the Chinese snap back into global travel.
Accor launches a fresh push into the expanding branded residences market; Soho House picks up its old name as it looks to pick up profitability too; and student accommodation providers continue to enjoy a demographic boost
Flexible office providers look to hotel-style franchising to accelerate their growth. But more importantly, will hybrid working provide opportunities for hotels? Marriott makes changes at the top - and those changes make it clear that it’s all about growth and brands. And Reits discover that big is beautiful, as well as providing a buffer of safety in uncertain times as debt markets tighten.
How Saudi Arabia is planning to outdo Dubai, with its megaprojects that will turn the kingdom into a post-oil tourism destination. Why vertical integration is working so well for Anglo-Irish group Dalata, and trans-European group PPHE. Plus how airlines, airports and air traffic control are letting the side down, when it comes to reinstating international long haul travel. The hotel rooms are waiting!
Reasons to be cheerful, as those in the UK hotel market look beyond recent, and current market challenges. IHG and Accor, both with a heavy stake in the Chinese hotel market, look forward to the upside of Asia’s reopening. And online bookings soar - good for leader Booking.com - but they continue to pay an awful lot to advertise their inventory.
A conversation with Joe Stather, VP market leader for operational real estate at Questex, ahead of the International Hospitality Investment Forum taking place 15-17 May in Berlin. The event’s theme is “Fortune favours the bold” - so where should investors look for the best opportunities in the market, after the pandemic?
Big beasts Hyatt and Marriott lead the pace of hotel group recovery. Airbnb’s stock rose after a solid 2022 with growing profits, but where’s the next opportunity for the platform? And we wonder what franchise specialists Choice and Wyndham will buy next, as they generate cash.
