Skift Take
After wildfires ravaged Maui’s western area, the island as an entire appeared to show strength in hotel need. Plus, optimism at Hyatt, The United States and Canada’s leading hotel managers, and more news highlights.
Sean O’Neill
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Optimism About Hyatt
JP Morgan experts reported on investor meetings they accepted Hyatt, stating they left incrementally enthused about Hyatt and its multi-year chances and improvement to a progressively asset-light service model.
Hyatt stated the seasonally driven shift to group and private business short-term travel mix is beginning in the U.S. and must change leisure for the balance of 3Q23 and 4Q23, accelerating RevPAR development relative to the summertime.
In the near to medium term, Hyatt communicated confidence in sustaining above-peer net rooms development and growing charges per room in excess of net rooms growth.
In a report, Truist continues to have Hyatt as its preferred name among hotel groups for potential stock performance. Truist offered positive booking and pricing patterns for U.S. hotels, and see no indications of demand slowdown. In reality, Truist sees U.S. RevPAR growing more powerful in the fourth quarter than in the 3rd quarter.
Hyatt CEO Mark Hoplamazian spoke at the Bank of America Conference a week ago. He said they are detecting signs that more people in huge cities are returning to workplaces, which he feels will result in more business short-term travel. Hyatt’s hotels in New York City are seeing increased levels of regional traffic, which means individuals are back in the workplace, a clear difference between now and the beginning of the year.
Skift Take: We summed up highlights from Hoplamazian’s remarks in Hyatt Sees Indications of a U.S. City Rebound That Might Boost Business Travel. See Hyatt CEO Mark Hoplamazian speak on-stage at the Skift Global Online Forum in New York City on September 27, 2023.
Maui’s Soft Influence on Regional Hotels
The wildfires that just recently devastated Maui’s western region were a major tragedy, and Skift has reported that tourism there deals with a “long recovery.”
That stated, if you zoom out to the viewpoint of hotel business throughout the Hawaiian island, you might see less of an organization and operational effect than numerous feared.
Sunstone Hotel Investors, a financier in approximately a lots eminence hotels, offered an organization upgrade this week. As Daily Lodging Report summarized: “It appears like the Maui wildfires’ effect was less bad than feared, or less of an impact than anticipated. August business earnings per readily available space (RevPAR) development was 1.4%, better than experts anticipated.”
Host Hotels & Resorts, America’s biggest hotel owner by home count, said it had prevented any reported property damage to the company’s hotels or golf courses on Maui. All its hotels remained open and functional through the wildfires.
The business’s hotels supply food and shelter for staff members, their households, and emergency action groups while remaining open to visitors. The Hyatt Regency Maui Resort and Day spa, for example, stays open to first responders and anticipates to begin inviting guests back in mid-October.
The business estimates that net income and hotel profits before interest, taxes, depreciation, and amortization from its three Maui hotels were affected by roughly $5 million in August. However it’s still prematurely to estimate the full-year impact due to the fact that of evolving tourist patterns on the island.
The company does not expect a delay in completing the extensive restoration at the Fairmont Kea Lani, which remains on track to be finished in the 4th quarter of 2023.
Skift Take: “Hawaii public authorities want tourists back after the awful wildfire as quickly as possible, however airline companies and tour operators understand that it requires time for regional neighborhoods to heal. For more, read: Hawaii’s Maui Tourist Faces ‘Long Healing’ After Wildfires.
Top Hotel Managers
J.D. Power launched its 2023 rankings of third-party hotel management business in North America Davidson Hospitality Group and Dimension Hospitality connected for overall guest fulfillment with branded hotels in the survey. HEI Hotels and Resorts ranked third. The benchmark asks visitors about factors such as “communications and connection, food and drink, guest room, hotel centers, personnel service, and value for rate.”
Skift Take: J.D. Power normally sells some of its findings to corporate customers, which has caused some critics to doubt its impartiality. Yet others think about the rankings to be one of the best readily available signalers of relative provider efficiency.