From the desks of the Hotel News Now editorial staff:
- Marriott confident following strong Q1
- Wyndham board approves spinoff, name change
- Hotel costs holding back US producer prices
- STR’s US, Canada weekly numbers
- Global emissions from tourism on the rise
Marriott confident following strong Q1: Hotels in Marriott International’s global system performed above expectations in the first quarter, which was enough for the company to revise its revenue-per-available-room growth guidance by 1.5 percentage points for the full year, Hotel News Now’s Bryan Wroten writes.
President and CEO Arne Sorenson told analysts on the company’s first-quarter earnings call the company is “very pleased” with performance in the quarter.
“Our hopes have been realized,” he said. “It’s time to take up the numbers a bit.”
Wyndham board approves spinoff, name change: The board of directors for Wyndham Worldwide Corporation has approved “the previously announced spinoff of its wholly-owned subsidiary Wyndham Hotels & Resorts,” according to a news release. The distribution will close on 31 May. Along with the spinoff, Wyndham Worldwide Corporation will be renamed Wyndham Destinations.
Once the spinoff is complete, Wyndham Hotels & Resorts will trade under the symbol “WH” on the New York Stock Exchange.
In other Wyndham news, the company announced the completion of the sale of its European vacation rentals business for approximately $1.3 billion to affiliate Platinum Equity, according to a news release. The vacation rentals business has more than 110,000 units across 25 countries.
Hotel costs holding back U.S. producer prices: Wholesale price growth in the United States barely saw a gain in April after strong increases in the first quarter, Reuters reports, and was held back by a “moderation in the cost of services such as hotel accommodation and health care, which could ease the fears that inflation pressures were rapidly building up.”
The U.S. Department of Labor said on Wednesday producer prices for final demand rose 0.1% last month after a 0.3% increase in March, the news outlet reports. The slowdown, however, is likely temporary because manufacturers have supposedly been paying more for raw materials.
“Services were restrained by a 3.2% drop in the cost of hotel accommodation, which was the biggest decline since September 2009,” Reuters reports.
STR’s U.S., Canada weekly numbers: According to data from STR, parent company of HNN, the U.S. hotel industry reported mixed year-over-year results during the week of 22-28 April. Occupancy declined 0.6% to 69.8%, but average daily rate rose 2.3% to $130.40, which pushed revenue per available room up 1.7% to $91.05.
Among the top 25 markets, Detroit reported the only double-digit increase in RevPAR (+17.8% to $89.18).
During the same week, the Canadian hotel industry reported positive year-over-year results across all three key performance indicators. Occupancy grew 0.8% to 69.5%, ADR rose 3.7% to 150.12 Canadian dollars ($117.41) and RevPAR increased 4.5% to CA$104.37 ($81.63).
Global emissions from tourism on the rise: A new study from Nature Climate Change shows global emissions from tourism are rising more than three times than previously thought, reports Pacific Standard.
“Tourists don’t just expend fossil fuels driving or flying to their destinations—hotels, food, beverages and other retail items all come with carbon emission of their own,” the article states.
The U.S. was top of the list for travelers contributing the most emissions—specifically 1,060 metric tons. China was second with 528 metric tons from travelers.
Compiled by Dana Miller.