Fourth quarter and full-year earnings reports are rolling in for hotel companies. Here's a look at how Accor, Hyatt, IHG and Hilton all performed.
Accor said its operating profit increased 11.7 percent last year due to a combination of cost-cutting as well as strong growth in northern Europe and Asia, reports FT.
Europe’s largest hotel group by number of rooms said that earnings before interest and taxes reached €602 million.
Accor, which is currently in the midst of a three-year reorganization of its business model, and said that operating margins last year reached a record 11 percent, compared with 9.6 percent in 2013.
Sébastien Bazin, Accor’s chairman and CEO, told FT, “The numbers are extremely solid. They are on track with our own expectations and prove that the three-year transformation is the right strategy.”
Since taking over in August 2013, Bazin abandoned the group’s previous plans to sell properties as part of an asset-light strategy. Instead, Accor separated its hotel services business from HotelInvest, its property ownership and management group.
Hyatt Hotels Corp.’s fourth-quarter profit increased on gains from real estate sales and higher occupancy, reports The Wall Street Journal.
Hyatt recorded a RevPAR increase of 1.9 percent in the fourth quarter. “Looking ahead, we expect continued strength in most U.S. markets while international markets will continue to be challenged due to market-specific factors,” said CEO Mark Hoplamazian.
Overall, Hyatt posted a profit of $182 million compared with $32 million at the same time last year. The quarter included a $246 million gain from real estate sales.
Hilton Worldwide posted a better-than-expected 7 percent increase in fourth-quarter revenue. Overall, Hilton Worldwide posted a profit of $158 million up from $26 million a year earlier.
For both the current quarter and the 2015 full year, the company said it expects RevPAR to grow 5 percent to 7 percent.
Hilton recently completed the $1.95 billion sale of the Waldorf Astoria New York, and said it would use the proceeds to buy five hotels in Florida and San Francisco.
InterContinental Hotels Group reported that global RevPAR jumped jumped by 6.1 percent in the year to December 31, led by a 7.4-percent rise in its American division.
Across the business, operating profits slipped 3 percent to $651 million, reflecting hotel disposals and other one-off items.
IHG at the ned of last year acquired Kimpton Hotels & Restaurants for $430 million, furthering its foothold in the lifestyle space.
"Looking into 2015, we face many macro-economic and geopolitical uncertainties, but are confident," Richard Solomons, CEO of IHG, said.