Brandt Hospitality Group Getting Great Results From Accounting Software Partner
Aptech | June 5, 2024
Hospitality Financial Leadership: Why Prioritizing Employee Development Has the Best ROI for Owners Too
David Lund | March 27, 2023
Finance
Loyalty Program Membership, Contribution, Liability, and Costs Continue to Grow
CBRE Hotels | November 4, 2024
By Rachael Rothman CFA, ISHC, Robert Mandelbaum, and Christine Bang Strong loyalty programs help hotel brands lower customer acquisition costs, increase direct-to-consumer access, and offset occupancy shortfalls during shoulder periods and weaker economic conditions. After analyzing publicly available data from five large hotel companies, we found that while growth in several key metrics slowed in 2023, loyalty members' overall contribution to occupancy increased, though marginal contribution per member contracted. Benefits The average number of loyalty program members at the subject five companies increased 11.3% in 2023, slower tha...
Choice Hotels International Reports Strong Third Quarter 2024 Results
Choice Hotels International, Inc. | November 4, 2024
NORTH BETHESDA, Md., Nov. 4, 2024 -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's leading lodging franchisors, today reported its third quarter 2024 results. Highlights include: Total revenues reached $428.0 million for third quarter 2024, a quarterly record and a 1% increase compared to the same period of 2023. Net income increased 15% to $105.7 million for third quarter 2024, representing diluted earnings per share (EPS) of $2.22, a quarterly record and a 23% increase compared to the same period of 2023. Third quarter 2024 adjusted net income, excluding certain items described in Exhibit 7, increased 1...
Marriott International Reports Third Quarter 2024 Results
Marriott International | November 4, 2024
Third quarter 2024 comparable systemwide constant dollar RevPAR increased 3.0 percent worldwide, 2.1 percent in the U.S. & Canada, and 5.4 percent in international markets, compared to the 2023 third quarter; Third quarter reported diluted EPS totaled $2.07, compared to reported diluted EPS of $2.51 in the year-ago quarter. Third quarter adjusted diluted EPS totaled $2.26, compared to third quarter 2023 adjusted diluted EPS of $2.11; Third quarter reported net income totaled $584 million, compared to reported net income of $752 million in the year-ago quarter. Third quarter adjusted net income totaled $638 m...
Loews Corporation Reports Net Income of $401 Million for the Third Quarter of 2024
Loews Corporation | November 4, 2024
NEW YORK, Nov. 4, 2024-- Loews Corporation (NYSE: L) today released its third quarter 2024 financial results. Third Quarter 2024 highlights:Loews Corporation reported net income of $401 million, or $1.82 per share, in the third quarter of 2024, compared to $253 million, or $1.12 per share, in the third quarter of 2023. Excluding the prior year third quarter's $37 million charge for the termination of Loews's defined benefit pension plan, net income grew 38% year-over-year due to increases at CNA, Boardwalk and investment income at the parent company, offset by a decrease at Loews Hotels. The following are key highlights: CN...
Hospitality Financial Leadership: What Are CAP Rates and How to Use Them
David Lund | November 4, 2024
A capitalization rate, or cap rate, is a measure of the income return on an asset, such as hotel or rental property, relative to its purchase price. It is calculated by dividing the net operating income (NOI) of the asset by its purchase price. That’s what this piece is all about. It also must be said from the get-go that understanding cap rates is not so difficult. “Normally” NOI is calculated using all income less all operating expenses but does not include costs for debt, depreciation, amortization, reserve for capital expense or income taxes. That’s the typical basis for the calculation of the hotel’s value, est...
Australia Household Spending Slips in Sept, Confounding Rebound Hopes
November 1, 2024
By Wayne Cole SYDNEY (Reuters) - Australian household spending fell in September as consumers cut back on clothing and cars, data showed on Friday, further confirmation that billions of dollars in recent tax cuts were being saved rather than spent. That should be a downside surprise to the Reserve Bank of Australia (RBA) which had expected consumption to pick up in the second half of this year and could see it adopt a more dovish tone at a policy meeting next week. "The data looks very weak over the last three months and surprisingly soft," said Gareth Aird, head of Australian economics at CBA. "If the data is close to accurate th...
Thai Finance Minister Says Wants to Beat Govt Forecast of 3% Growth in 2025
October 31, 2024
By Orathai Sriring and Kitiphong Thaichareon BANGKOK (Reuters) -Thailand's economic growth rate is expected to increase to 3% in 2025, supported by spending, exports, investment and tourism, the government said on Thursday, and the finance minister said he was already working to beat that forecast. Southeast Asia's second-largest economy is seen growing 2.7% this year, the finance ministry said, a solid increase from 2023's subdued 1.9% expansion. "The growth trend is still ongoing. The government is trying everything to drive the economy," Finance Minister Pichai Chunhavajira told reporters at a business event. "Hopefully, next y...
Ensuring Your Deal Closes: Three Areas to Focus On
Eric Guerrero | October 31, 2024
Both buyers and sellers want a seamless hotel transaction closing, but a variety of potential pitfalls can slow a deal’s closing. Below, we review three key areas of a hotel sale that may present obstacles: financing, PIP costs, and property insurance premiums. We also provide recommendations that help you to anticipate and prevent issues. Financing Securing debt at a reasonable market rate with good terms is still one of largest obstacles in closing a deal. In order to obtain a good loan, a buyer must have a strong balance sheet with a credible global cash-flow and solid track record of success in owning and operating other hotels. Bu...
UK’s Reeves Commits to Lower Property Taxes for Retail, Hospitality and Leisure
October 30, 2024
LONDON (Reuters) -British finance minister Rachel Reeves on Wednesday committed to lower business rates for high street stores to help "level the playing field" with their online rivals. Predominantly bricks-and-mortar retailers have for years complained that business rates - a property tax charged on most commercial properties to fund local services - are archaic and hand an unfair cost advantage to online retailers such as Amazon. Labour had pledged in its election manifesto to redress the balance to help revive town centres. Delivering her first budget plan, Reeves said that from 2026-27 permanently lower tax rates for retail, hos...
Spain’s Economy Beats Forecasts With 0.8% Quarterly Growth
October 30, 2024
MADRID (Reuters) -The Spanish economy grew at a faster-than-expected rate in the third quarter to again outpace its European peers thanks to a strong tourism season and exports, preliminary data showed on Wednesday. Spain's gross domestic product grew 0.8% in the third quarter from the previous three months, the same pace of expansion as in the second quarter, the National Statistics Institute (INE) said. Year-on-year it grew 3.4%, an acceleration from the 3.2% registered in the previous three months. Analysts polled by Reuters had expected GDP to grow 0.6% quarter-on-quarter and 3.0% year-on-year. "Today's data show how strong and b...
Record Passenger Traffic Lifts Spanish Airport Operator Aena’s Profit
October 30, 2024
MADRID (Reuters) - Spanish airport operator Aena said on Wednesday its net profit in the first nine months of the year rose 27% from the same period last year as the post-pandemic travel boom pushed passenger traffic to new records. Aena booked a net profit of 1.44 billion euros ($1.56 billion) out of revenues rising 16% to 4.39 billion euros. The revenue and profit data were in line with forecasts from analysts polled by LSEG, who expected 4.4 billion euros in revenues and 1.46 billion euros in net profit during the January to September period. The company reported a record 283 million passengers across its terminals in Spain, Latin Am...
Top Chinese Airlines’ Profits Fall as Flagging Economy Pressures Fares
October 30, 2024
By Lisa Barrington and Sophie Yu SEOUL/BEIJING (Reuters) - China's top three state-owned airlines reported profit declines in the third quarter despite record summer passenger numbers and fuller planes than last year, as a slowdown in domestic economic growth pushes flyers to seek cheaper fares. Beijing-headquartered Air China on Wednesday reported a net profit of 4.14 billion yuan ($581.34 million) in the quarter, down from 4.24 billion yuan a year earlier. China Eastern Airlines on the same day posted a net profit of 2.63 billion yuan, down 28.2% year on year. The country's largest airline China Southern said on Monday there was...
Caesars Entertainment Posts Surprise Quarterly Loss, Misses Wall Street Estimates
October 30, 2024
(Reuters) - Caesars Entertainment posted a surprise third-quarter loss on Tuesday, missing market expectations, as sales were hurt by new competition and construction-related disruptions in regional markets, sending its shares down 4% after the bell. Quarterly loss per share came in at 4 cents, compared to Wall Street expectations of a profit of 12 cents, according to data compiled by LSEG. Caesars' bottom-line in the U.S. regional market has faced increased pressure due to new entrants and expanded offerings from existing competitors. In the past, the casino operator flagged high competition in Indianapolis from Churchill's Terre Ha...
B·Hospitality Completes Portfolio-Wide Implementation of Aptech’s PVNG Hotel Accounting Solution at Bayfront Inn 5th Avenue
Aptech | October 24, 2024
PITTSBURGH – October 24, 2024 – Aptech, a leading provider of enterprise accounting, business intelligence, financial planning and management solutions for the hospitality industry, today announces that B·Hospitality has implemented Aptech’s award-winning enterprise accounting solution, PVNG, at its luxury property, Bayfront Inn 5th Avenue in Naples, Florida. This rollout completes the seamless implementation of the solution in all three of Ontario-based B•Hospitality’s North American hotel properties. Known as a leading provider of back office and accounting solutions for the hospitality industry, Aptech has more than 50 years of ...
Hilton Cuts 2024 Room Revenue Growth Forecast on Slowing Consumer Spending
Reuters | October 23, 2024
By Doyinsola Oladipo and Aishwarya Jain (Reuters) -Hilton Worldwide lowered its annual room revenue growth and net income forecasts as steady demand in Europe and business travel were not enough to counter a fall in demand in China and disruptions to its U.S. business during the third quarter. Shares of Hilton, which owns hotel brands such as Waldorf Astoria and DoubleTree, were down 2% on Wednesday. Rival Marriott International also fell 3%. Global travel demand has been facing challenges as American and Chinese consumers remain wary of macroeconomic trends. Ongoing labor disputes, the upcoming election and weather disruptions in the U....
IHG: Q3 Trading Update to 30 September 2024
IHG Hotels & Resorts | October 22, 2024
Highlights Q3 global RevPAR +1.5%, with Americas +1.7%, EMEAA +4.9% and Greater China -10.3% Q3 global rooms revenue on a comparable hotels basis saw Groups demand +6%, Business +2% and Leisure broadly flat on same quarter last year YTD global RevPAR +2.4%, with Americas +1.8%, EMEAA +6.4% and Greater China -5.6% Average daily rate +1.7% and occupancy -0.1%pts in Q3, +1.9% and +0.4%pts respectively YTD Gross system size growth +5.9% YOY, +3.7% YTD; opened 17.5k rooms (98 hotels) in Q3, representing another quarter of sequential improvement and very significantly ahead of the 7.7k in the same period last year Net system s...
BirchStreet Appoints Phil Beck as GM, BirchStreet Pay
BirchStreet | October 22, 2024
LAS VEGAS – October 22, 2024 – BirchStreet Systems, a leading global SaaS provider and network for Hospitality procure-to-pay (P2P) and F&B services, today announced the appointment of Phil Beck as EVP & General Manager of its BirchStreet Pay business. Designed for the unique needs of the hospitality industry, the BirchStreet Pay solution helps customers streamline payment processes with increased visibility and enhanced spend control. As the latest addition to its executive leadership team, the appointment of Beck to drive the overall vision and strategy and enhance Pay product and technology is intended to further position Bir...
Agilysys To Report Fiscal 2025 Second Quarter Results October 28th and Host Conference Call and Webcast
Agilysys | October 15, 2024
ALPHARETTA, GA. — October 15, 2024 — Agilysys, Inc. (AGYS), a leading global provider of hospitality software solutions and services that deliver High Return Hospitality, announced today that it will release its fiscal 2025 second quarter results after the market closes on Monday October 28, 2024 and host a conference call and webcast at 4:30 p.m. ET that day. Both the call and webcast are open to the public. All participants should register for the call using the participant registration URL: https://register.vevent.com/register/BIfb8adfed26314ff8abe76f95460e6fde Once registered, participants will receive a confirmation email ...
Methods in the Madness: Insiders Share Their Budgeting Approach
HotStats | October 15, 2024
Budgeting is like training for an Olympic marathon. Days are spent creating a plan to address weaknesses, build on strength and endurance, and hedge against unfortunate events. Money is earmarked for activities that hopefully will generate income or sponsorships to procure better equipment. A significant amount of time is spent too in scoping out conditions in the field and closest competitors. The goal, after all, is to be in business for the long haul while staying lean and nimble in the short term. Like all athletic training, there are no easy ways to go about budgeting. “There’s a lot going around in my head,” says Neetu Mistry, ...
Market Snapshot: Asia Pacific 2024
Hok Yean CHEE | October 9, 2024
In 2023, hotel transaction volume in the Asia Pacific recorded approximately USD11.7 billion, a 12% decrease from USD13.3 billion from the previous year. The decline in transaction activity can be attributed to the high interest environment, buyer and seller price expectation gap, and a lack of suitable or available hospitality assets in the market. Australasia (Australia and New Zealand), as well as Southeast Asia, observed decreases of 20% and 56% in transaction volume, respectively. However, the trailing 12 months have shown positive signs, with total transaction volume recording a 17% increase, reaching approximately USD12.1 billion. Thi...
Navigating Hotel Financing in a World Eager for New Travel Experiences
Shivan Perera | October 7, 2024
Although the coronavirus pandemic is in the rearview mirror, the hotel industry is still rebounding from the financial distress caused by the severely reduced number of travelers during that time. Years later, some positives have emerged for the industry. Lenders are cautiously optimistic about the potential for growth in hotel and hospitality investments. Increased consumer confidence, a rise in domestic travel, and a growing interest in experiential tourism are driving demand for new supply. Spread between cap rates and borrowing costs are narrow, attracting both institutional and non-institutional investors. Even though the gap between bor...
Hospitality Financial Leadership: Managing F&B Expenses and How to Record Them on Your P&L
David Lund | September 30, 2024
As I have said in many of my earlier posts, Food and Beverage is special. And I mean that with all sincerity because it's an integral part of our business especially with a full service offering. However, there are challenges that we need to overcome and one big one is how to report the profit and loss activity so that it is as meaningful as possible. I say “possible” because there are no absolute methods to get 100% of the picture that really work. Many try to get and stay on top of their costs and payroll and that’s the right thing to do. The reality is that it’s never going to be perfect. It’s not going to be perfect because w...
Where Your Hotel’s Finance Team Should Be at This Point in Budget Season
Jill Wilder | September 17, 2024
By Jill Wilder, President of Aptech It’s that time of year – budget season. "Budget" – even the word sounds daunting to most people. The good news is the budgeting process for your hotel doesn't have to be overly difficult. The key assets when building a budget for your hotel company are: ✓ Organization ✓ Teamwork – with all departments supplying their input and information without delay. ✓ Hotel-specific software – to help your finance team gather accurate data across your portfolio and easily provide their recommended budget on time. Let's Start with the Basics A hotel budget is essentially a financial plan and strat...
Hospitality Financial Leadership: Why You Want to Use a Rolling Forecast
David Lund | September 9, 2024
Rolling forecasts are nothing new but I must point out that most hotels don’t use them, and they really should. It’s an incredibly useful tool that is literally worth its weight in gold. That being said, it doesn’t weigh much but once you start to use one it’s an indispensable tool that you must have each month, and its impact and importance usually gains weight and momentum into the final few months of the year. Like the plot in a good mystery, it can take a sudden turn and produce an unexpected ending. To start out we need to define how we produce a rolling forecast and point out the best practices around its creation. Then, we w...
