Driven by an uptick in international business as well as an increase in occupancy and ADR, a couple of major brand companies, Hilton and Wyndham Hotels & Resorts, reported better than expected 2Q results and both expressed optimism for the remainder of 2022.
Hilton Worldwide Holdings Inc., for the second quarter ended June 30, reported net income of $367 million, exceeding the high end of guidance. Systemwide comparable RevPAR increased 54.3%, on a currency-neutral basis compared to the same period last year, but was down 2.1% compared to the same period in 2019.
“Our second-quarter results exceeded the high end of our guidance for systemwide comparable RevPAR, diluted EPS, adjusted for special items, and Adjusted EBITDA,” stated Christopher Nassetta, president/CEO, Hilton. “Given our strong results in the quarter, coupled with our confidence in continued recovery throughout the year, we are raising our full-year guidance, including our outlook for capital return. With a capital-light business model, a strong portfolio of brands and dynamic, industry-leading platforms, we are well-positioned for the opportunities that lie ahead.”
For the three months ended June 30, system-wide comparable RevPAR increased 54.3% compared to the same period in 2021, due to increases in both occupancy and ADR, and fee revenues increased 54% compared to the same period in 2021.
Meanwhile, from a development perspective, Hilton opened 91 new hotels in the second quarter contributing to 14,400 additional rooms and achieved net unit growth of 13,300 rooms. Notable openings during the quarter include the Waldorf Astoria Washington DC and the Hotel Marcel New Haven, Tapestry Collection by Hilton, which is anticipated to be the first net-zero hotel in the U.S. Additionally, in July, Hilton celebrated the opening of its 7,000th property,
Wyndham Hotels & Resorts, for the second quarter ended June 30, reported global RevPAR of $44.28, a 23% increase over the same period last year, including 15% growth in the U.S. and 59% growth internationally. The increase is approximately 80% driven by stronger pricing power and 20% driven by higher occupancy levels.
“We kicked off our high-demand summer season with the strongest Memorial Day we’ve ever experienced, as guests traveled further, stayed longer and spent more at our hotels than they did pre-pandemic,” stated Geoffrey Ballotti, president/CEO. “Our business experienced another strong quarter performing above both last year and 2019 as international recovery accelerated and our development teams grew our pipeline to a record level. Our second-quarter results once again demonstrated the strength and durability of our business model, and we are well on track to deliver on our 2022 commitments.”
Fee-related and other revenues increased 10% year-over-year to $354 million as the impact from the increase of global RevPAR and higher license fees were partially offset by a $21 million impact from the sale of the company’s owned hotels and the exit of its select-service management business.
From a development perspective, Wyndham awarded 187 new contracts this quarter compared to 154 in Q2 2021. On June 30, the company’s global development pipeline consisted of approximately 1,600 hotels and approximately 208,000 rooms, of which approximately 80% is in the midscale and above segments (nearly 70% in the U.S.). The pipeline grew 9% YOY, including 17% domestically and 5% internationally. Approximately 62% of the company’s development pipeline is international and 78% is new construction, of which approximately 36% has broken ground.