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1. Hilton Boosts Profit Outlook
Hilton executives increased the company's 2023 outlook in first-quarter earnings results released this morning. The company now expects system-wide revenue per available room between 8% and 11%, net income between $1.331 billion and $1.385 million and adjusted earnings before interest, taxes, depreciation and amortization between $2.875 billion and $2.95 billion.
In the first quarter, the company recorded $209 million in net income and $641 million in adjusted EBITDA with a 30% year-over-year increase in RevPAR. Hilton also had 5,300 net rooms growth for the quarter.
2. London Set To Claim Most Rooms Outside China
A news report from Bloomberg citing STR data notes London is slated to overtake Las Vegas as the city with the largest hotel supply outside of China. STR is CoStar's hospitality analytics firm.
The news agency reports that China's two largest markets — Shanghai and Beijing — dwarf other global markets in terms of room count, but with London's rooms supply slated to grow by roughly 18% in the next few years to 183,600, it'd be able to slightly edge out both Las Vegas and Tokyo.
Other top room-supply markets include Dubai, Orlando, Hangzhou, New York and Guangzhou.
"When the British pound fell after Brexit, London suddenly became a much more affordable place for tourists to visit, and the historic city remains one of the most desirable destinations in the world," Bloomberg reports. "London limits short-term rentals such as Airbnb to 90 days a year, clearing away some competition for hotels."
3. Asset Managers Still Focused on Labor
While there are a lot of different reasons to feel concerned in commercial real estate, hotel asset managers are still most worried about the availability and cost of labor, according to the Hospitality Asset Managers Association's Spring 2023 Industry Outlook Survey.
In that survey, 64.6% of respondents ranked wage increases as one of the factors they are more concerned about, followed by 57.3% who are worried about labor availability and 52.4% concerned about demand. No other concerns were picked by more than 32% of respondents.
Matt Arrants, principal and founder of The Arrants Company, said hotel companies have been less willing to cut staff as demand dips.
"It's saying 'OK, I'll take the hit because it's cheaper than trying to replace employees,'" he said.
4. Mississippi Hotel That Played Role in Civil Rights Movement Demolished
The Associated Press reports the E.F. Young Jr. Hotel, a hotel that played an important role in housing members of the Civil Rights movement after it opened in 1946, has been demolished. Owners of the property said it had deteriorated while sitting vacant and it would've been too expensive to renovate.
“The only way that people could communicate was by word-of-mouth limited telephone, and they had what is called a Green Book,” state Rep. Charles Young Jr. of Meridian told WLBT-TV in February, noting the hotel served as “one of the premier places to stay in the South.”
5. Optimism Wins Out for Hotels Heading Into Earnings Season
Reuters reports the general outlook heading into hotel earnings season is positive as demand growth is expected to outpace rising costs.
The news agency reports conditions are particularly positive for online travel agencies such as Expedia and Booking.com
"During uncertain economic times, when travelers are looking to stretch their dollars as far as possible, OTAs can help drive demand," Phocuswright's senior analyst Madeline List said.