Futuristic Hotel and then on the right is a keyless digital checkin

šŸ”” BREAKING INDUSTRY NEWS

Hilton Grows More Bullish on 2025 as Hotel Chainā€™s Stock Hits All-Time High

  • Hiltonā€™s stock hit an all-time high of $273.01 after rising 5.9%, marking a 10.3% gain in 2024 compared to the S&P 500ā€™s 3.3% increase.
  • The company reported strong Q4 results with a 3.5% growth in revenue per available room (RevPAR), exceeding guidance, and adjusted earnings of $1.76 per share, beating the $1.68 estimate, alongside revenue of $2.783 billion, slightly above expectations.
  • Hilton projects 6ā€“7% net unit growth for 2025, driven by a robust development pipeline of 498,600 new rooms, and remains more optimistic about economic growth and business opportunities than it was three months ago. | SOURCE: MARKETWATCH

Culinary Workers End Strike in Las Vegas

  • Culinary workers in Las Vegas have ended their 69-day strike after reaching a new five-year collective bargaining agreement with Virgin Hotels Las Vegas. This marks the first strike in 23 years for the Culinary Workers Union Local 226 and Bartenders Union Local 165, which represent 60,000 workers in Nevada.
  • While contract details were not disclosed, both parties expressed a commitment to fostering positive relations. The strike included peaceful protests, with 57 members arrested for civil disobedience. Union members had urged the public to avoid Virgin Hotels during the dispute. | SOURCE: AOL

Marriott Adjusts 2025 Profit Forecast Due to China Slowdown

  • Marriott Internationalā€™s stock fell nearly 5% after forecasting a lower-than-expected 2025 profit due to weak hotel performance in Greater China. The company projected an adjusted profit of $9.82 to $10.19 per share, below Wall Streetā€™s $10.65 estimate, as domestic travel in China remained sluggish amid economic concerns.
  • Systemwide room revenue in Greater China declined 1.7% in Q4, though a slight improvement is expected this year. Meanwhile, strong demand from wealthy Chinese travelers boosted outbound travel to Southeast Asia, and the Asia-Pacific region (excluding China) saw a 12.5% revenue rise, driven by growth in Japan, India, and Thailand.
  • Marriott anticipates stronger international market growth outside Greater China compared to the U.S. and Canada. Despite these challenges, Q4 adjusted earnings of $2.45 per share beat estimates by 7 cents, with revenue reaching $6.43 billion, surpassing the $6.38 billion forecast. | SOURCE: REUTERS


šŸšØ REGULATORY UPDATES

New York Bans Single-Use Plastic Bottles in Hotels

  • Effective January 1, 2025, a new law in New York prohibits hotels from providing single-use plastic bottles for toiletries such as soap and shampoo. Initially, this applies to hotels with 50 or more rooms and will expand to all lodgings by 2026.
  • Non-compliance can result in fines up to $500 for repeated violations. | SOURCE: NYPOST


šŸ“ˆ OCCUPANCY AND OPERATIONS UPDATES

U.S. Hotel Industry Sees Strong Q4 with Record RevPAR Growth

  • Top-Line Metrics (December 2024 vs. December 2023):
  • Occupancy: 53.2% (+1.1%)
  • Average daily rate (ADR): US$156.67 (+3.3%)
  • Revenue per available room (RevPAR): US$83.30 (+4.4%)
  • Largest monthly RevPAR gain of the year
  • Highest quarterly RevPAR growth since Q1 2023
  • 13 hurricane-affected markets lifted quarterly performance
  • Compressed holiday period and calendar shift also key in December performance
  • SOURCE: STR

U.S. Hotels State of the Union February 2025 Edition By CBRE

  • CBRE raised its 2025 GDP growth forecast to 2.4% from 1.7%, with inflation expected to persist and interest rates projected to drop to 3.9% by Q4 2025. December RevPAR increased 2.6%, driven by ADR growth of 2.3% and occupancy rising 0.2%, with resorts seeing the most improvement. Short-term rentals continue to take market share, reaching 13.7% demand share, while cruise, casino, and rental revenues significantly outpaced hotel growth.
  • Profit margins remain under pressure despite a 2.6% rise in total operating revenues, as expenses continue to grow faster than revenues. Corporate travel demand surged 5.6%, while group demand grew only 0.2%. Inbound international travel reached 93% of 2019 levels, though growth from Japan and China hit a post-pandemic high of 58.4%. TSA throughput rose 1.7% YoY in January, following a strong 6.6% holiday season increase, boosting airport hotel RevPAR by 3.5% in December. | SOURCE: CBRE


šŸ… COMPETITIVE SHIFTS

Club Quarters Hotels Became The First in The Industry to Integrate Digital Room Keys

  • The hotel industry is ramping up technological advancements to enhance guest convenience and stay competitive. Club Quarters Hotels became the first in the industry to integrate digital room keys into Apple and Google Wallet, allowing guests to access their rooms seamlessly without downloading an extra app. Hilton is leveraging the wellness trend by integrating Calmā€™s meditation and mindfulness content into 2,400+ properties, offering an in-room digital wellness experience.
  • Other tech-driven initiatives include JW Marriott Scottsdaleā€™s operational upgrades under new management and Dreams Resortsā€™ MasterChef Junior experience, which enhances family-oriented offerings with interactive culinary programs. Meanwhile, The Ritz-Carlton, Amelia Island revamped its Salt restaurant with expanded private dining and digital menu enhancements. | SOURCE: TRAVELMARKET