From the desks of the Hotel News Now editorial staff:
- Marriott launches home-rentals platform
- Whitbread says Brexit uncertainty affecting UK market
- Wyndham posts 55% increase in Q1 revenue
- MGM beats expectations as revenue hits $3.2 billion
- Kasada closes $500-million Africa fund
Marriott launches home-rentals platform: Marriott International has launched Homes & Villas by Marriott International, a home-rental platform that currently has more than 2,000 offerings in 100 destinations that it terms “premium and luxury homes,” according to a news release.
Marriott claims the platform has been developed from its pilot Tribute Portfolio Homes initiative, with global Chief Commercial Officer Stephanie Linnartz stating “the launch of Homes & Villas by Marriott International reflects our ongoing commitment to innovation as consumer travel needs evolve.”
Whitbread says Brexit uncertainty affecting U.K. market: Executives at Whitbread PLC, parent of Premier Inn, the United Kingdom’s largest brand, said during its latest earnings conference call that economic uncertainties, including those engineered by Brexit, are undermining performance, but the company still plans to increase its U.K. room count from the current 76,000 to a new total of 110,000.
The company also is pushing ahead with growth in Germany, with a second hotel opening in February, 17 properties in the pipeline, according to a news release.
Wyndham posts 55% increase in Q1 revenue: Wyndham Hotels & Resorts in its first-quarter 2019 results has shown a 55% year-over-year increase in revenue to $468 million, according to numbers presented by the Parsippany, New Jersey-based company.
CEO Geoff Ballotti also was happy with other metrics in the quarter, which included a 13% year-over-year increase in revenue per available room. Wyndham executives said they were confident that the guidance of an adjusted earnings before interest, taxes, depreciation and amortization of $605 million to $620 million, a year-over-year increase of 19% to 22%, would be realized across the next full year of trading.
MGM beats expectations as revenue hits $3.2 billion: MGM Resorts International executives said the company performed better than expected in the first quarter of 2019 as revenue increased 13% to $3.2 billion and adjusted EBITDA grew 5%, according to a news release.
HNN’s Bryan Wroten writes Chairman and CEO Jim Murren believes the company is making significant progress on its MGM 2020 plan.
“We've made changes to our leadership, announced the addition of a pioneering new digital leader who will oversee growth and revenue, and we are progressing with phase one of MGM 2020, which is expected to deliver $200 million of (earnings before interest, taxes, depreciation and amortization) in 2020,” Murren said during the company’s Q1 earnings call.
The Las Vegas-based firm also announced that its consolidated subsidiary MGM China Holdings proposes to offer $1.25 billion in aggregate principal amount of senior notes in a private placement. No date was given as to when this will close.
Kasada closes $500-million Africa fund: Johannesburg-based investment firm Kasada Capital Management has closed its debut fund, Kasada Hospitality Fund LP, with an equity total of more than $500 million that will be used to acquire hotel properties in sub-Saharan Africa, according to a news release.
Co-led by former Accor executive Olivier Granet, the fund’s capital is buoyed by the joint venture between Accor and Qatari investment firm Katara Hospitality, which contributed $150 million and $350 million, respectively.
Compiled by Terence Baker.