Report: U.S. Extended-Stay Hotels Set Q3 Performance Records


Third-quarter performance for U.S. extended-stay hotels set 14 new records for metrics including demand, occupancy, average daily rate and revenue per available room, according to the latest quarterly report from The Highland Group. Additionally, in year-to-date metrics through Sept. 30, economy extended-stay hotels set four new records, midprice reported two and the upscale segment set a new high for demand.

“It is highly likely that extended-stay hotels will continue to set new performance records during the near term,” said The Highland Group partner Mark Skinner in a statement.

Third-quarter U.S. extended-stay hotel room-night demand was 40,431, representing a 25.7 percent year-over-year increase and the highest gain in demand ever reported during any quarter for the segment, according to the report. Supply growth, with various hotel closures and re-openings due to the effects of the pandemic, was 6.3 percent during the same period, consistent with what was seen prior to the pandemic.

The overall U.S. extended-stay occupancy level was 78.8 percent for the quarter, an 18.2 percent year-over-year increase. The economy tier reported the highest occupancy level at 83.3 percent, followed by midprice at 78.5 percent. Both figures were third-quarter records for their tiers and represent full recovery to 2019 third-quarter occupancy levels. Occupancy in the upscale tier, however, which accounts for about 40 percent of extended-stay room supply, was 77.2 percent. Though lower than the other tiers, the number represents a 30 percent year-over-year increase. 

Economy and midprice ADRs have surpassed 2019 levels and set new third-quarter records. Upscale-tier ADR increased 22.4 percent from its 2020 level but still is about $9 lower than its 2019 level. The overall U.S. extended-stay segment’s ADR was $104.96 for the quarter, about 98 percent of the 2019 third-quarter rate. 

Third-quarter RevPAR was up 48.5 percent year over year to $82.76. All three tiers showed significant year-over-year improvement, with economy and midprice RevPAR above 2019 third-quarter levels. Upscale RevPAR improved 59.1 percent year over year to $106.18, representing about 89 percent of 2019’s third-quarter level.

RELATED: Report: Q2 U.S. Extended-Stay Demand at Record High



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Q3 Revenue Up in Sixt’s ‘Best Quarter in History’


Rental car and mobility services provider Sixt has posted what it called “by far” the best quarterly result in the company’s history, with consolidated operating revenue in the third quarter of 2021 up 2.2 percent from pre-pandemic levels. 

The company reported third-quarter earnings before taxes of €253.2 million, a fourfold increase on the same period last year (€66 million) and up 72.8 percent from the third quarter of 2019. At €795.2 million, revenue was 73 percent higher than the same quarter in 2020 and 2.2 percent higher than 2019.

Furthermore, Sixt said it already has earned more in the first nine months of 2021 than it did in the full-year 2019, at €317.4 million versus €308.2 million, respectively.

Sixt said it has benefitted from strong demand for mobility that continued into the autumn, particularly in the U.S. and European markets, along with an increase in market prices throughout the car rental industry caused by a shortage of new vehicles.

According to the company, as well as leisure travel, business travel has “also shown a clear recovery”, with global B-to-B revenue in August and September higher than the levels seen in the same period of 2019. 

Sixt said strategic growth measures implemented during the pandemic had a particularly positive effect on its performance, with the company pointing to the U.S. as a high-growth market. In the nine months ending Sept. 30, Sixt reported U.S. sales reached €413.1 million, an increase of 11.3 percent from 2019 and double sales seen in 2020. 

According to Sixt, it is now the fourth-largest car rental company in the U.S., with 94 locations.

The company said it benefitted from a “long summer season” in Europe, with high demand continuing into the autumn. Third-quarter revenue in the region (excluding Germany) grew 82.3 percent year over year to €386.7 million. Germany grew at the “slightly more subdued pace” of 24.1 percent to €233.1 million, which Sixt attributed to the slow restart of business travel in the country.

Sixt recently increased its full-year forecast to earnings of between €390 million and €450 million.



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Citing Q3 Growth, Cvent Calls Variant Impact ‘Limited’


Third-quarter revenue for meetings management company Cvent increased 13.1 percent year over year to $134.1 million, the company reported this week.

Cvent founder and CEO Reggie Aggarwal during an earnings call acknowledged that the delta variant of Covid-19 had a negative effect on the meetings industry and slowed the return of in-person events, but called its effect “limited.”

“The silver lining is that we were able to accelerate our growth during this time,” Aggarwal said. “The limited impact of the delta variant really showed our business’ true resiliency. Quarter three 2021 is the first quarter we’ve grown since we felt the impact of the pandemic, and it’s a great foundation for our future growth.”

Aggarwal attributed the growth to factors including what he called significant new business signed during the quarter, existing clients expanding their usage of the Cvent platform and product innovation.

The company reported third-quarter revenue for its Event Cloud product for planners of $92.5 million, representing a 27.2 percent year-over-year increase, according to Cvent CFO and SVP William Newman. Revenue for its Hospitality Cloud product for suppliers declined 9.2 percent during the period to $41.6 million. “We are seeing signs of recovery in the Hospitality Cloud as the rate of decline improved significantly relative to the second quarter of 2021, when it declined by 23.2 percent,” he said.

Cvent also increased its fourth quarter and full-year 2021 guidance based on the strong revenue performance during the third quarter. The company expects fourth-quarter revenue in the range of $139.9 million to $141.1 million, representing increases of 21.1 percent and 22.2 percent, respectively, compared with the fourth quarter of 2020. Full-year revenue guidance is in the range of $514.1 million to $515.3 million, representing increases of 3.1 percent and 3.3 percent, respectively. 

Cvent in July announced its intention to go public via a merger with a special purpose acquisition company, Dragoneer Growth Opportunities Corp. II, at a valuation of $5.3 billion. That merger is expected to close during the fourth quarter of 2021.

RELATED: Cvent Confirms SPAC Move, Details Finances, Virtual Bet



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Hyatt: ‘Upward Momentum’ for Group, Corp. Transient in Q3


Similar to other major hotel companies during
the third-quarter earnings season, Hyatt Hotels Corp. reported that leisure
continues to drive the recovery, but there is “progression of group and
business transient demand.” Revenue from those two segments improved more
than 40 percent from the prior quarter, according to the company.

“While [corporate transient and group] demand did not
accelerate immediately following Labor Day due to the delta variant, the upward
momentum has been steady throughout September and October,” said Hyatt
president and CEO Mark Hoplamazian on Thursday’s quarterly earnings call.
“The rate of improvement in group during October has been particularly
meaningful after seeing elevated levels of cancellations in August and early September
due to the delta variant. Since that time, cancellations have receded while
short-term group demand has strengthened.”

Hyatt’s systemwide group revenue jumped 16 percent in
October compared with September and is trending at 50 percent of fully recovered
levels, Hoplamazian said, adding that group bookings for 2022 are also showing
significant improvement. “In October, our leads for 2022 grew by 38
percent compared to September, and we are now 10 percent ahead of 2019 levels
for group business that is likely to book,” he said.

Group pace for 2022 is approximately 80 percent, a bit
weaker than reported for the second quarter, but the company is confident that
with growing lead volume, the momentum will build into 2022.

Business transient recovery has been softer than group,
“but it is still showing steady momentum, with demand recovering to 46
percent of 2019 levels in October,” Hoplamazian said. “We continue to
see stronger growth in our regional as compared to our larger national accounts,
however that gap is narrowing. Our largest corporate accounts have grown by 50
percent since June, and we continue to be encouraged by dialogue with corporate
customers who are returning to offices in bigger numbers, with many planning a
more robust return to travel in 2022.”

Q3 Key Performance Metrics

Hyatt’s third-quarter 2021 comparable systemwide revenue per
available room was $93.70, representing a decrease of 31.8 percent compared
with the third quarter of 2019, according to the company. Both occupancy and average
daily rate contributed to the sequential growth, with occupancy improving by
700 basis points and rate growing by 12 percent from the second quarter, said
Hyatt CFO Joan Bottarini. “The improvement in rate is especially notable
as it reached 96 percent of 2019 levels on a systemwide basis,” she said.

Hotels in resort locations were the primary driver of the
recovery during the first two months of the quarter, with a more notable
improvement from urban locations in September driven by growing demand for
business transient and group, Bottarini added.

Hyatt opened 20 new hotels with about 4,600 rooms during the
quarter, contributing to a 6.9 percent year-over-year increase. The company
executed management or franchised contracts for approximately 103,000 rooms for
its pipeline for a year-over-year increase of 2 percent for the quarter. 

Earlier this week, the company completed its acquisition
of Apple Leisure Group
.

RELATED:Hyatt
Q2 earnings



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Marriott: Q3 Corp. Transient Growth Slowed, Group Business ‘Accelerated Nicely’


Marriott International’s corporate transient and group
business continue to show improvement during the recovery, but the latter took
a bit more of a hit during the third quarter, said Marriott CEO Anthony Capuano
on a Wednesday quarterly earnings call.

“In the U.S. and Canada, special corporate was the segment
most impacted by the delta variant during the quarter, given the delay in the
return to office timelines,” Capuano said, explaining that the company
identifies special corporate as business transient customers who book at
pre-negotiated rates. “The [segment] gives us the best indication of
business demand trends. Special corporate bookings showed steady recovery each
month this year until we saw a slight pullback in the back half of the third
quarter.”

Capuano added that the segment’s upward trajectory returned
in October with bookings versus 2019 growing each week during the month,
especially for certain verticals. “Accounting and consulting grew 35
percent over what we saw last month, and technology business grew about 31
percent versus last month,” he said. Overall, “special corporate
bookings are currently down less than 40 percent compared to the same time
frame in 2019.”

Based on conversations with corporate clients, Marriott
expects a recovery in business transient to gradually continue as more workers
return to the office, guest visitation policies are relaxed and a greater
number of employees are permitted to travel again. 

In addition, historically, Marriott’s business transient
business coming from small and midsize companies was about 60 percent of
business transient revenue. During the recovery, SMEs have been accounting for
about 75 percent of the company’s business transient revenue, Capuano said. As
a result, some of that SME business has been in more secondary and tertiary
markets, said Marriott CFO Leeny Oberg. “However, during the third
quarter, we saw the best improvement in our big cities in special corporate
that we’ve seen since the pandemic. So, it is absolutely moving in the right
direction, including those larger cities.”

Group on the Rise

Group business, meanwhile, “accelerated nicely”
during the quarter in the U.S. and Canada. “Group room revenues for the
quarter were down 46 percent versus the third quarter of 2019, a significant
improvement compared to the second quarter’s decline of 76 percent versus the
same time period in 2019,” Capuano said, adding that social groups were
particularly strong.

Further, U.S.-managed group bookings beat 2019 levels for
each of the last five months through October, as event-booking windows have
shortened during the pandemic, he said. “In-the-quarter-for-the-quarter
bookings in October were above [those] from October 2019 by over 30 percent,
which is the highest percentage increase we’ve seen since the beginning of the
pandemic.”

In line with other hotel company quarterly reports, group
average daily rates have continued to rise, and “for full-year 2022, it’s
currently pacing nearly 4 percent above pre-pandemic levels,” Capuano
said. 

Q3 Key Performance Metrics

Marriott’s third-quarter 2021 comparable systemwide revenue
per available room, adjusted for currency fluctuations, increased 118 percent worldwide,
135 percent in the U.S. and Canada, and 76 percent in all other markets year
over year. Compared with 2019, RevPAR declined 26 percent worldwide, 20 percent
in the U.S. and Canada, and 41 percent in all other markets. 

Worldwide occupancy was 58.2 percent for the quarter, up
23.4 percentage points from 2020. Average daily rate was $155.21, a 30.6
percent year-over-year increase. Both occupancy and ADR increased compared with
the first and second quarters of 2021, with ADR down only about 4.4 percent in
the third quarter compared with the third quarter of 2019, according to a
company filing with the U.S. Securities and Exchange Commission. 

“We’ve been very pleased to see rate almost back at
pre-pandemic levels in just 20 months,” Oberg said. “In comparison,
global ADRs have lagged the recovery in RevPAR in prior downturns, taking
around five years to rebound after the 2009 recession and around four years to
recover post 9/11.” 

The company reported more than $3.9 billion in revenues for
the quarter, compared with $2.3 billion one year ago. It also reported $220
million in net income versus $100 million in the third quarter of 2020. 

Guest-Room Growth

Marriott added approximately 17,500 rooms globally during
the third quarter, including more than 2,200 conversion rooms. “We’ve
already added more conversion rooms in the first nine months of this year than
we did in all of 2019,” Capuano said, adding that the company expects 2021
net rooms growth to be approximately 3.5 percent. 

As of Sept. 30, the company’s worldwide pipeline totaled
2,769 properties with nearly 477,000 rooms. More than 206,000 of those rooms
were under construction as of the end of the quarter.

RELATED:Marriott
Q2 earnings



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Wyndham: Q3 Blue-Collar Business Travel Strong, Consistent


Demand during the third quarter from Wyndham Hotels & Resorts’ “everyday business travel segments” outpaced the company’s third-quarter 2019 results, the company reported Thursday. 

“Our infrastructure and transportation segments, representing the vast majority of the 30 percent of our domestic business travelers, continue to outperform the broader white-collar business transient and group segments by nearly 40 points, increasing by 8 percent overall versus 2019,” said Wyndham president and CEO Geoffrey Ballotti during a Thursday quarterly earnings call. 

This segment is driven by growing construction activity, utility project work and trucking demand from coast to coast, he added, “and we do not expect that to slow down at all.”

Corporate transient, which represents about 10 percent of Wyndham’s business travel segment and 3 percent of franchisees’ total revenues, improved since the second quarter and is now down less than 30 percent compared with 2019, Ballotti said.

Q3 Performance Results

Wyndham reported third-quarter net revenue of $103 million, compared with $27 million one year ago and $45 million in 2019. Global revenue per available room for the quarter was $45.80, up 56 percent year over year and down 3 percent from 2019 levels. U.S. RevPAR at $57.73 exceeded 2019 levels by 7 percent. Economy, midscale and upper midscale RevPAR exceeded 2019 levels. The upscale and above category was down by 14 percent.

The company opened about 15,000 rooms during the quarter, which was more than a 50 percent increase year over year and 4 percent more than what was opened in 2019, Ballotti said. Still, Wyndham’s portfolio of rooms remained nearly constant with a net loss of 1,400 for the quarter for a total of 802,600 as of Sept. 30. Domestically, Wyndham’s portfolio shrunk by about 2 percent with the loss of 10,900 rooms. Its international portfolio grew 3 percent with the addition of 9,500 rooms in total. About 9,100 were added in China and 2,000 in the rest of Asia-Pacific. The company lost 1,700 in Europe, the Middle East and Africa, and 900 in Canada.

Global conversion activity was up 9 percent versus 2019, while new construction efforts in the quarter were consistent with 2019 levels, Ballotti said, adding that the number of projects in the company’s new construction pipeline is over 1,000 hotels for the first time in Wyndham’s history.

Full-Year 2021 Guidance

Wyndham updated its full-year 2021 guidance for net rooms growth to a range of 1.5 percent to 2 percent year over year versus a prior outlook of 1 percent to 2 percent. The company anticipates 2021 RevPAR growth of approximately 43 percent year over year, a decline of about 16 percent compared with 2019. It expects full-year adjusted net income in the range of $275 million to $285 million, up from $244 million to $254 million in previous guidance.

RELATED: Wyndham Q2 results



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Allegiant Travel: Q3 Earnings Snapshot


Updated 40 minutes ago

LAS VEGAS (AP) _ Allegiant Travel Co. (ALGT) on Wednesday reported third-quarter net income of $39.3 million, after reporting a loss in the same period a year earlier.

The Las Vegas-based company said it had profit of $2.18 per share. Earnings, adjusted for non-recurring gains, came to 66 cents per share.

The results did not meet Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 70 cents per share.

The travel services company posted revenue of $459.5 million in the period.

Allegiant Travel shares have declined slightly more than 5% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $179.04, a rise of 35% in the last 12 months.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ALGT at https://www.zacks.com/ap/ALGT





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