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1. Majority of UK Hotel Bookings Now on Smartphones
The majority of United Kingdom hotel bookings are now made on smartphones, not on laptops, according to Travolution, citing research from SHR. It said that British consumers now use smartphones in 51.3% of occasions, a 6.1% increase from this time last year.
Travolution reports this indicates “consumers are becoming far more comfortable booking travel on mobile devices, thanks in large part to the volume of information and seamless booking experience now available on all platforms."
The research also shows tablet bookings dropped by 33.4% and now account for “just 2.2% of domestic U.K. hotel reservations."
2. Hilton Posts Robust Second-Quarter 2024 Numbers
Hilton posted strong numbers in the second quarter of 2024, with net income coming in at $422 million and adjusted earnings before interest, taxes, depreciation and amortization coming in at $917 million. Revenue per available room across its entire portfolio grew by 3.5% year over year.
In terms of development, Hilton reported 62,700 rooms signed, setting a new total pipeline record with 508,300 rooms, an increase of 15% from the same period in 2023. The company opened 22,400 rooms, resulting in net additional 18,000 rooms in the network, an increase of 6.2% year over year.
3. Peninsula Hotels Reports Loss Following Previous COVID-19 Rebounds
Hong Kong and Shanghai Hotels, the operator of Peninsula Hotels, said on Aug. 7 that its first-half 2024 results showed it was losing money, Nikkei Asia reports. It blamed sluggish markets after several quarters of growth as it and other Greater China hotel companies struggle with poor domestic demand.
Hong Kong and Shanghai Hotels’ numbers for the period showed a net loss of 448 million Hong Kong dollars ($57.4 million) for the first six months of the year, down from a net profit of 94 million Hong Kong dollars a year ago. Combined revenue increased by 82% to 4.93 billion Hong Kong dollars thanks to the firm debuting two new hotels in London and Istanbul.
4. Four Hotel Employees Charged With June 30 Milwaukee Death
Four hotel employees are facing murder charges over the death of 43-year-old D'Vontaye Mitchell, reports CNN. On June 30, these employees at the Hyatt Regency Milwaukee, Wisconsin, allegedly pinned Mitchell down for eight or nine minutes after escorting him from the hotel after he entered the hotel "in a frantic state" and became combative with security staff. A medical examiner's report released late last week found Mitchell died from “restraint asphyxia and toxic effects of cocaine and methamphetamine,” and the manner of death was homicide.
CNN reported “the encounter unfolded as the use of force — particularly against people of color — by police and others in authority roles remains under scrutiny nearly four years after protests flared nationwide following the murder of George Floyd by a Minneapolis police officer.”
5. Apple Hospitality REIT Lowers Guidance on Rate Growth Concerns
Apple Hospitality REIT reduced its full-year 2024 guidance due to concerns over slower rate growth and more price sensitivity among leisure travelers, reports HNN's Bryan Wroten. During the company’s second-quarter earnings call, Senior Vice President and Chief Financial Officer Liz Perkins said the company is decreasing its midpoint net income guidance by $6 million and comparable hotels revenue per available room change by 150 basis points. It is increasing its comparable hotels earnings before interest, taxes, depreciation and amortization margin by 10 basis points while decreasing adjusted EBITDA for real estate by $7 million.
“While operational results for the first quarter of 2024 were in line with our expectations at a previously provided midpoint, and demand continued to improve during the second quarter, rate growth during the second quarter was modest, and the updated outlook takes into account increased price sensitivity in the leisure consumer and the impact of the increase in business transient as a percent of mix, which is currently coming at lower rates than those we'd seen for leisure consumers following the pandemic," she said.
Despite lowering its outlook for the year, Perkins said the team is confident the company is well-positioned for continued strong operating fundamentals and bottom-line performance.