Related Newslog Items
August 12, 2010
InterContinental Hotels Group reported a $219 million operating profit for the six months through June compared with $179 million the year before. "With business travelers returning in greater numbers," room rates are "now stabilizing across the world, with most markets seeing rate growth towards the end of the first half," according to CEO Andrew Cosslett. Second quarter
average daily rate fell 1.3 percent to $97.55 in the Americas, increased 0.6 percent to $135.25 in Europe, the Middle East and Africa, and rose 1.9 percent to $104.70 in Asia-Pacific.
August 11, 2010
Smith Travel Research predicted U.S. hotel occupancy in 2010 would rise 4.4 percent versus 2009, with revenue per available room up 4.3 percent to $55.77. Average daily rate will be roughly flat, the firm estimated. "We're still a little bit worried about the ADR part of the equation," according to STR president Mark Lomanno. "The industry is currently facing a lot of challenges, and there are all kinds of pressures on that ADR number: the online travel agencies and still-rebounding group business, to name just two." STR expects supply to grow 2.2 percent during 2010, with demand up 6.6 percent.
August 8, 2010
Travelers to Boston and Portland, Ore. face the highest "discriminatory" travel taxes in the United States, above $21 per day, according to an NBTA Foundation report examining taxation on car rentals, hotel stays and meals in the 50 largest U.S. cities. Orange County, Calif. levies the lowest discriminatory tax total on travel services, $2.19 on average per day, followed by eight other California cities. NBTA defines discriminatory taxes as "those imposed specifically on travel services above and beyond general sales taxes," often including "a bewildering combination of charges such as excise,
occupancy, transportation, tourism, special, facility and capital improvement taxes, plus a long list of other taxes and fees frequently imposed by overlapping jurisdictions." Sponsored by Concur, the report found that overall daily travel taxes, including both discriminatory and general sales, are highest in Chicago ($38.75), New York ($36.53) and Boston ($36.47), and lowest in Ft. Lauderdale and Ft. Meyers, Fla. ($21.22), followed by Portland, Ore., which charges no general sales tax on travel services. To establish comparable figures, general sales taxes are based on daily costs averaged across all cities for hotel rooms ($97.33), car rentals ($55.22) and meals ($86.74).
August 5, 2010
Hyatt Hotels Corp. reported a June quarter net profit of $25 million compared with $50 million the year before. The company "absolutely" expects to see percentage increases for corporate rates next year, ranging "from low single-digits to low double-digits," but "it will vary a lot based on the individual account," according to CEO Mark Hoplamazian. Globally, revenue from transient customers increased during the second quarter versus last year as systemwide
average daily rate increased 0.8 percent to $160 and
occupancy rose 6.9 percentage points to 71.5 percent. In North America, group revenue increased 10 percent and group room nights grew 13 percent. At full-service North American properties, transient room nights sold climbed 4 percent, group bookings in the quarter for the quarter jumped 35 percent and group rates increased 5 percent.
August 5, 2010
Avis Budget Group reported second-quarter net income of $29 million, reversing the $2 million loss from a year earlier. U.S domestic car rental revenue declined 5 percent on 6 percent fewer rental days and marginally lower
average daily rates. Non-U.S. car rental revenue jumped 16 percent on a 13 percent increase in
average daily rate. CEO Ron Nelson told analyst that commercial pricing during the quarter was "flat" versus last year. "Large $1 million-plus accounts just aren't getting very significant price increases, if any," he said.
July 29, 2010
GDS hotel bookings in June jumped 23.5 percent year over year and average daily rate grew 6.3 percent, according to Pegasus Solutions. In North America, hotel ADRs for bookings in global distribution systems increased 3.3 percent. The 7.5 percent growth outside North America represented "the highest ADR growth year-to-date," according to Pegasus. "Increasing demand witnessed by healthy booking volumes indicates there is yet more room to raise rates and realize additional revenue potential."
July 28, 2010
Wyndham Worldwide reported second-quarter net income of $95 million, up from $71 million last year. Systemwide
average daily rate dropped to $64.27 from $66.22 and
occupancy increased 1.3 percentage points to 50.2 percent.
July 28, 2010
Choice Hotels International achieved second-quarter net income of $27 million, a 6 percent increase from a year earlier. Worldwide
average daily rate fell 2.2 percent year over year to $69 while
occupancy climbed 1.3 percentage points to 51.7 percent.
July 23, 2010
The U.S. lodging industry's average daily rate during the first half of 2010 fell 2 percent year over year to $97, while
occupancy increased 4.4 percent to 56.4 percent, according to
Smith Travel Research. During the second quarter, ADR was flat at $97.87 and
occupancy rose 6.2 percent to 60.7 percent.
July 22, 2010
Starwood Hotels & Resorts reported net income of $114 million, down 15 percent year over year. Worldwide systemwide
average daily rate increased 1.6 percent to $158.54 from $156 the year before while
occupancy climbed 7 percentage points to 68.8 percent. Overall group rates booked for 2010 rose 16 percent whereas corporate transient was the "primary driver of demand" and remained "robust," according to CFO Vasant Prabhu. During the quarter, midweek occupancies in Boston, Chicago and New York City topped 90 percent and rates increased roughly 5 percent--leaving room for Starwood in 2011 to increase corporate rates that fell about 20 percent since 2008, according to Prabhu. "While raising rates is not something that delights customers, this is a business that is determined by the supply-demand balance. As retail rates rise, corporate negotiated [rates] will need to rise too," said Prabhu. "In our case corporate negotiated rates are clearly one of the factors that are holding back ADR growth this year. Therefore [Starwood] would look for high single digit increases in our negotiations later this year."
July 21, 2010
Corporate room nights booked in the second quarter by Host Hotels & Resorts properties rose 11 percent, corporate rates grew 6 percent and corporate revenue increased 18 percent, the company announced. "Special" corporate room nights rose 33 percent. Association and corporate group booking rates in lower-tier segments grew 121 percent, while overall corporate group business climbed 16 percent. For 2011, Host is "sending the message" that higher rates are to come and although "that message is being accepted corporate customers," that "doesn't mean it will ultimately be negotiated," according to CEO W. Edward Walter. The company reported second-quarter net income of $20 million compared with a loss of $69 million a year earlier. Overall
average daily rate decreased to $175.47 from $177 whereas
occupancy climbed to 74 percent from 68 percent.
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