Q2 2017 Financial Reports Round Up – Part 5: Marriott, IHG, Ryman, Xenia, Belmond

Marriott International Reports Second Quarter 2017 Results Highlights

• Second quarter reported diluted EPS totaled $1.08, a 13 percent increase over prior year results. Second quarter adjusted diluted EPS totaled $1.13, a 35 percent increase over second quarter 2016 combined results. Adjusted 2017 second quarter results exclude merger-related Combined 2016 second quarter results assume Marriott’s acquisition of Starwood and Starwood’s sale of its timeshare business had been completed on January 1, 2015;
• Worldwide comparable systemwide constant dollar RevPAR rose 2.2 percent in the 2017 second quarter, while North American comparable systemwide constant dollar RevPAR rose 0.9 percent;
• The company added roughly 16,000 rooms during the second quarter, including nearly 2,300 rooms converted from competitor brands and more than 5,900 rooms in international markets;
• At quarter-end, Marriott’s worldwide development pipeline increased to more than 440,000 rooms, including roughly 42,000 rooms approved, but not yet subject to signed contracts;
• Second quarter reported net income totaled $414 million, a 68 percent increase over prior year results. Second quarter adjusted net income totaled $432 million, a 30 percent increase over prior year combined results;
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $834 million in the quarter, a 69 percent increase over second quarter 2016 adjusted EBITDA and an 8 percent increase over second quarter 2016 combined adjusted EBITDA;
• Marriott repurchased 7.3 million shares of the company’s common stock for $725 million during the second quarter. Year-to-date through August 4, the company repurchased 16.0 million shares for $1.5 billion.

To view full quarterly results please visit: http://investor.shareholder.com/mar/releasedetail.cfm?ReleaseID=1036369

IHG Reports Interim Results to 30 June 2017

Keith Barr, Chief Executive of InterContinental Hotels Group PLC, said:

“We have had a good first half. RevPAR growth of 2.1% and net system size growth of 3.7% delivered a 7% increase in underlying operating profit and a 27% increase in underlying EPS, underpinning the Board’s decision to increase the interim dividend by 10%.

We continue to make good progress in executing our well-established strategy to deliver high quality sustainable growth, and during the half we passed the landmark of over 1 million open or pipeline rooms. In June, we announced a new, midscale brand to address a $20 billion underserved segment in the US. We believe this will become another brand of scale for IHG that will deliver superior returns to our owners. Other highlights include the continued roll-out of new design formats across our Holiday Inn Brand Family and the ongoing repositioning of Crowne Plaza. Leveraging our technological capabilities, we are on track to begin roll out of our next generation cloud-based Guest Reservation System in late 2017.

I feel privileged to be the new CEO of IHG and to have the opportunity to build on the strong performance we have delivered. My focus is on driving an acceleration in our growth rate, by increasing the resources dedicated behind the highest opportunity markets and segments, strengthening our brand portfolio, building on our leading loyalty proposition, and enhancing our competitive advantage through prioritising digital and technological innovation. We will continue to focus on enhancing our cost efficiency to generate funds for reinvestment. This, combined with our cash-generative business model and disciplined approach to capital allocation, will drive superior returns to shareholders.

While we will always face macro-economic and geopolitical uncertainties, we remain confident in the outlook for 2017.”

Financial Highlights

• Solid revenue growth driven by both RevPAR and rooms
  • Global comparable H1 RevPAR growth of 2.1%, led by occupancy up 0.9%pts. Q2 RevPAR up 1.5%, including a decline of -0.4% in the US, adversely impacted by the timing of Easter.
  • 3.7% net room growth year on year, with 23k room openings, up 31% year on year, which includes 3.5k rooms in Makkah, Saudi Arabia, signed in 2015.
• High-quality business model, focused on disciplined execution, capital allocation and shareholder returns
  • Group fee margin of 51.0%, up 2.4%pts (1.5%pts CER); favourable cost phasing and efficiency improvements.
  • Focused investment and asset recycling led to net capital expenditure5 of $162m (gross: $186m).
  • $0.4bn returned to shareholders in May via a $2.025 per share special dividend with 45 for 47 share consolidation.
  • 10% increase in interim dividend to 33.0¢ reflects confidence in our long-term sustainable growth.

Strategic Progress

• Strengthening our portfolio of preferred brands
  • Launch, in June, of a high quality midscale brand in the US, leveraging our expertise across the mainstream6 segment where we already have a 21% share of supply and 24% share of pipeline, to build another brand of scale for IHG. Early interest in the brand from our ~2,000 existing franchisees has been highly encouraging.
  • Continued to roll out innovative guest room and public area enhancements for the Holiday Inn Brand Family; new designs now in more than 400 hotels across US and Europe, driving mid-single digit increases in guest satisfaction.
  • Positive response to Crowne Plaza US Accelerate programme, with owner capital commitments of ~$190m in the last year in hotel purchases and major refurbishment in addition to ~30 hotels committing to renovating guest rooms.
  • Growing our boutique footprint, with the opening of our second Kimpton outside the US, in Amsterdam, and six more US openings planned this year; and our Hotel Indigo open and pipeline hotels reaching over 150 globally, with openings in Bali and Los Angeles and signings in Beijing and London’s Leicester Square.
• Growing through targeted hotel distribution
  • Signed 32k rooms into the pipeline, taking it to 230k rooms. ~45% of the pipeline is under construction.
• Driving revenue delivery through technology and loyalty
  • Innovative cloud-based Guest Reservation System on track for roll-out in 2017, with full deployment expected by late 2018/early 2019. Positive feedback on transformational user-interface.
  • Continued focus on driving direct bookings with the completion of the global roll out of ‘Your Rate by IHG Rewards Club’ following the Q1 launch in Greater China. Loyalty contribution up 0.4%pts YoY and enrolments up 12% YoY.

To view full quarterly results please visit: https://www.ihgplc.com/en/news-and-media/news-releases/2017/interim-results-to-30-june-2017

Ryman Hospitality Properties, Inc. Reports Second Quarter 2017 Results

– Consolidated Net Income of $47.3 Million –

– Consolidated Adjusted EBITDA of $98.5 Million –

– RevPAR Decrease of 0.7 Percent; Total RevPAR Increase of 0.3 Percent Compared to Second Quarter 2016 –

– Capital Projects Across Hospitality and Entertainment Segments Remain on Pace –

– Raises Full-Year Guidance Midpoint –

To view full quarterly results please visit: http://ir.rymanhp.com/news-releases/news-release-details/ryman-hospitality-properties-inc-reports-second-quarter-2017

Xenia Hotels & Resorts Reports Second Quarter 2017 Results

Second Quarter 2017 Highlights

• Net Income: Net income attributable to common stockholders was $69.4 million, which includes a $49.2 million gain on the sale of investment properties. Net income per diluted share was $0.65.
• Same-Property RevPAR: Same-Property RevPAR decreased 1.4% compared to the second quarter of 2016 to $166.18, as occupancy decreased 120 basis points and ADR increased 0.1%. Excluding the Company's Houston-area hotels, Same-Property RevPAR increased 0.3%, as occupancy declined 4 basis points and ADR increased 0.4%.
• Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 34.2%, a decrease of 32 basis points compared to the second quarter of 2016. Excluding the Company's Houston-area hotels, Same-Property Hotel EBITDA Margin increased 29 basis points.
• Total Portfolio RevPAR: Total Portfolio RevPAR was 0.8% higher than in the second quarter of 2016.
• Adjusted EBITDA: Adjusted EBITDA declined $8.4 million to $79.6 million, a decrease of 9.6% primarily due to net asset dispositions since the second quarter of 2016.
• Adjusted FFO per Diluted Share: Adjusted FFO per diluted share was $0.59, a decrease of 9.2% compared to the second quarter of 2016.
• Transaction Activity: The Company acquired one hotel for $205.5 million and sold six hotels for total consideration of $193 million.
• Financing Activity: The Company obtained a new $115 million mortgage loan collateralized by the Marriott San Francisco Airport Waterfront and paid off three mortgage loans totaling $128 million.
• Dividends: The Company declared its second quarter dividend of $0.275 per share to common stockholders of record on June 30, 2017.

To view full quarterly results please visit: http://investors.xeniareit.com/CorporateProfile.aspx?iid=4552942

Belmond Ltd. Reports Second Quarter 2017 Results

Revenue of $165.9 million, up $11.4 million or 7% over the prior-year quarter; up $13.1 million or 9% on a constant currency basis

• Net losses attributable to Belmond Ltd. of $4.9 million compared with net earnings attributable to Belmond Ltd. of $8.4 million for the prior-year quarter; year-over-year decrease largely attributable to acquisition-related costs associated with Cap Juluca, Anguilla, British West Indies, and an impairment charge, partially offset by improved operating results
• Adjusted net earnings from continuing operations of $19.7 million, up $15.7 million over the prior-year quarter
• Adjusted EBITDA of $46.3 million, up $8.2 million or 22% over the prior-year quarter; up $8.5 million or 22% on a constant currency basis
• Same store revenue per available room (“RevPAR”) up 9% over the prior-year quarter; up 8% on a constant currency basis
• Expands global footprint with May 2017 acquisition of Cap Juluca
• Further strengthens board of directors with election of Demetra Pinsent in June 2017
• Increases balance sheet flexibility with July 2017 refinancing of corporate credit facility
• Maintains full year 2017 same store, constant currency RevPAR guidance

To view full quarterly results please visit: http://investor.belmond.com/news/2017/08-07-2017-220033566.aspx