Hotel giants reveal their third-quarter performance, and the recovery signs are promising
It’s been a difficult year so far for hotel companies, to say the least, but the key players are all witnessing green shoots in their recovery from the impacts of COVID-19.
In the third quarter of this year, Marriott International saw its worldwide RevPAR drop 65.9 per cent, compared to the same period in 2019.
However, CEO Arne Sorenson noted this figure was a nearly 19-percentage-point improvement from the decline in the second quarter.
“Greater China continues to lead the recovery and demonstrates the resiliency of travel demand, with third-quarter occupancy of 61 per cent and RevPAR recovering to down 26 per cent – a 35-percentage-point improvement compared to the decline in the second quarter,” he said.
“Third-quarter occupancy at our hotels in North America reached 37 per cent – nearly double occupancy in the second quarter – primarily driven by leisure, drive-to demand, with business and group recovering more slowly.
“Globally, 94 per cent of our hotels are now open and welcoming guests.”
Sorenson said the Asia-Pacific region led Marriott’s deal signings in the third quarter – accounting for more than half of all rooms signed globally – with the vast majority of those rooms in Greater China.
“During the third quarter, we added more than 19,000 rooms to our system – nearly 70 per cent more than were added in the second quarter – achieving five per cent gross rooms growth in the last 12 months,” he said.
Like Marriott, Accor experienced a significant fall in RevPAR during Q3 of 2020. However, the group noted that the 62.8 per cent decline was a “significant sequential improvement” in the wake of a “difficult” second quarter when RevPAR plummeted 88.2 per cent.
“This improvement reflects a recovery in business in all regions, and most especially in Europe during the summer season,” Accor said.
Accor opened 57 hotels (or 7,800 rooms) during Q3, which it described as “encouraging figures”.
By the end of September 2020, 90 per cent of the group’s hotels were open for business.
Hilton’s RevPAR decreased by 59.9 per cent during the third quarter of 2020. However, the three-month period also saw the group approve 17,400 new rooms for development, bringing its development pipeline to 408,000 rooms as of 30 September, representing eight per cent growth from 30 September 2019.
Hilton also opened 17,100 rooms in the third quarter, contributing to 14,800 net additional rooms in the group’s system, and representing 4.7 per cent net unit growth from 30 September 2019.
And, as of 2 November, 97 per cent of Hilton’s system-wide hotels were open.
Hilton boss Christopher Nassetta said the company’s third-quarter results show “meaningful improvement” over the second quarter.
“The vast majority of our properties around the world are now open and have gradually begun to recover from the limitations that the COVID-19 pandemic has imposed on the travel industry, with occupancy increasing more than 20 percentage points from the second quarter,” he said.
“While a full recovery will take time, we are well-positioned to capture rising demand and execute on growth opportunities.”
RevPAR for InterContinental Hotels Group (IHG) declined by 53 per cent in Q3, compared to a 75 per cent decline in the prior quarter; while occupancy was at 44 per cent, up from 25 per cent in Q2.
IHG managed to open 11,000 rooms (82 hotels) during the third quarter and signed a further 14,000 rooms (82 hotels). Only three per cent of the group’s hotels (199 properties) remained closed as of 30 September.
“Domestic mainstream travel remains the most resilient, and our industry-leading Holiday Inn brand family positions us well to meet that demand as it slowly returns,” IHG chief executive Keith Barr said.
As for Hyatt, overall RevPAR decreased by 72 per cent in Q3, but also marked a continued recovery across all regions, more than doubling sequentially off the low in the second quarter of 2020.
Hyatt also doubled the number of room nights sold compared to the second quarter of 2020.
“I am exceptionally proud of our hotel teams who gained transient demand market share in the segments and geographies of strongest demand globally as they continue to discover and secure demand from many different sources,” president and CEO Mark Hoplamazian said.
“I am also very encouraged that we opened 27 new hotels representing over 4,300 new rooms – a record number of hotel openings for any third quarter in our history – while sustaining our pipeline for future growth during this disrupted time.”
As of 30 September, 92 per cent of Hyatt’s hotels (88 per cent of rooms) were open, compared to 80 per cent of hotels (74 per cent of rooms) at 30 June.
Featured image source: iStock/kadmy
Latest News
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit
Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]
Sydney named 17th best place to work remotely
If you struggle to get a seat within Sydney's coffee shops, you now know why.
W Melbourne grows sales team
We appreciate the thought that has gone into this team photo.
Cunard welcomes new ship Queen Anne
This might be the most impressive ship handover in ship handover history.
Intrepid Travel appoints Yvette Thompson as general manager sales & marketing ANZ
It isn't end-of-day Monday and Yvette Thompson has already nabbed herself an impressive promotion.
Anna Fawcett re-joins Global Touring in newly-created APAC role
With such an impressive CV, Global Touring is no doubt thrilled to have Fawcett back.
“We know our response has been far from perfect” – Emirates’ open letter following Dubai flooding
If you also need to write an apology letter, then this is a pretty good template.
Malolo Island Resort opens brand new Spa
Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]
Virgin Australia’s HILARIOUS second instalment of the ‘Bring on Wonderful’ campaign
We don't use the word 'hilarious' lightly, but this is worthy of the title.
Visit Sunshine Coast reveals new brand identity
If you were looking for another reason to visit the Sunshine Coast then this is it.
Sofitel launches brand campaign starring Sex Education’s Gillian Anderson
We can confirm the content of this video is less spicy than Sex Education.
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!