Recent Hotel Earnings Tell Us Brands See Resilience in Development Pipelines
Photo Caption: The entrance to the Waldorf Astoria Jerusalem has an iconic clock that rests in the atrium expanse. Source: Hilton.
Skift Take
While economic storm clouds gather, public hotel companies said in earnings calls that their deal and development work remains largely strong — and intact.
Earnings seasons for the hotel sector is nearly over, and one striking aspect of executive comments on calls with investors was the resilience of development pipelines for hotels belonging to brands run by global groups. For new construction, conversions, and franchise signings, hotel companies painted an optimistic picture.
The U.S. market was still among the world's robust during the third quarter. Choice Hotels, which has a heavy presence in the U.S., reported that in September it saw a 23 percent increase year-over-year in new domestic franchise agreements awarded. A majority were for conversions. Demand for its new construction brands rose by about 30 percent in the third quarter, year-over-year.
New construction in the U.S. has faced a relative slowdown for more than a year, first because of supply-chain and labor disruptions and then because of interests rates rising making it somewhat harder for developers to get debt to finance projects. But southern st
