U.S. and China Developments Will Dominate Hotel Earnings Season
Skift Take
Omicron soured hotel recovery momentum at the end of last year, but high daily rates for U.S. hotels and groundbreakings in China offer two growth narratives amid the pandemic setback.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.Hotel earnings season is here and densely packed: Marriott, Wyndham, Hilton, Choice Hotels, and Hyatt all report within a three-day span beginning Tuesday.
Third quarter earnings season was notably upbeat around the idea new coronavirus cases were coming down, and the return of business travel was just around the corner. Omicron upended that optimism over the fourth quarter, but there are still ways for these major hotel companies to show shareholders a growth story.
The U.S., despite its record-setting surge of new cases, remained open for travel. That kept hotel performance generally durable through winter and holiday travel season. Even when occupancy rates dipped, hotel owners maintained rates, or charged more, and were able to avoid a massive hit to performance during the variant surge.
Each of the companies reporting this week have a bulk of their portfolio in the U.S., so they will likely not see the negative impact that a company like Paris-based Accor — with a major European presence — faced.
Companies like Wyndham and Choice are likely to show the most resili
