From the desks of the Hotel News Now editorial staff:
- Wyndham to split hotel, timeshare businesses
- Bank of England cuts growth expectations
- Hyatt, Wyndham, Park share Q2 results
- Rate pushes RevPAR for US hotels
- China-to-US travel continues to grow
Wyndham to split hotel, timeshare businesses: Officials with Wyndham Worldwide have announced, via news release, plans to split the company into two publicly traded companies, dividing their hotel and timeshare businesses. Following the split, the two companies would be divided by what are currently known as Wyndham Hotel Group, based in Parsippany, New Jersey, and Wyndham Vacation Ownership, in Orlando, Florida, but names of the new companies have not been decided.
The spinoff is expected to be tax free and close in the first half of 2018, and at its completion the two companies would sign “long-term exclusive license agreements to retain their affiliation with one of the industry’s top-rated loyalty programs, Wyndham Rewards, as well as continued collaboration on key inventory sharing and customer cross-sell initiatives.”
During Thursday’s conference call to discuss the company’s Q2 2017 earnings, Wyndham Worldwide Chairman and CEO Stephen Holmes said the company is “confident that a spinoff of the hotel business … is the best structure to retain shareholder value. … allowing each company to retain sharper focus on its core business, facilitating capital raising … and positioning each company to make changes necessary to respond to the market.”
The company has also pledged to look for “strategic alternatives” for their European rental brands.
Bank of England cuts growth expectations: Brexit-related concerns have pushed the Bank of England to scale back its expectations for growth for the United Kingdom’s economy and wages and to keep “its benchmark rate at a record low,” according to a report from Bloomberg.
The bank pointed to inflation outpacing wage growth, keeping consumers from spending more. The announcement drove down the pound 0.7%.
Bloomberg points out the Bank of England isn’t entirely pessimistic, though.
“The (BOE’s forecasts) continue to assume a smooth Brexit and are based on a rate hike fully priced in by the third quarter of 2018. … It now projects economic growth of 1.7% this year and 1.6% in 2018, down from 1.9% and 1.7%,” the news outlet writes.
Hyatt, Wyndham, Park share Q2 results: Hyatt Hotels Corporation, Wyndham Worldwide, and Park Hotels & Resorts are among the latest publicly traded hotel companies to share the results from the second quarter of 2017. Here’s a look at their Q2 highlights:
Hyatt: The company has revised up its full-year revenue-per-available-room guidance to 1% to 3%—it was previously flat to 2%—following a stronger-than-expected second quarter where systemwide RevPAR increased 2.9% year over year. The company also saw a 30.5% increase in net income to $87 million.
Wyndham: In addition to the company’s planned split, officials reported a 5% year-over-year increase in revenue to $1.5 billion and Wyndham Hotel Group reported a 3.3% increase in systemwide RevPAR.
Park: Weakness in San Francisco drove down overall performance for the real estate investment trust, which saw a 0.2% year-over-year drop in RevPAR for the quarter. Outside of that market, the company’s hotels increased RevPAR 1.7%.
Rate pushes RevPAR for U.S. hotels: An increase in average daily rate drove a modest increase in RevPAR for U.S. hotels for the week ending 29 July, according to the latest data from Hotel News Now’s parent company STR.
ADR was up 1.2% year over year to $132.21 for the week, as occupancy increased just 0.3% to 77.4%, combining for a 1.5% bump in RevPAR to $102.39.
Among the top 25 markets, St. Louis, Missouri-Illinois saw the largest jump in each of the three key performance metrics, with occupancy up 12% to 82.6%, ADR up 14.7% to $115.63 and RevPAR up 28.5% to $95.53.
China-to-U.S. travel continues to grow: Hotels.com’s latest Chinese International Travel Monitor projects the U.S. to become an increasingly popular destination for Chinese travelers, ranking only behind France among international destinations over the next year.
The increase in inbound Chinese travelers is attributed in part to “a recent agreement between the U.S. and China to extend visas for short-term business travelers, tourists and students.”
According to the study, the top U.S. markets for Chinese travelers are (in order): Hawaii, New York, Los Angeles, Las Vegas, Seattle and San Francisco.
Compiled by Sean McCracken.