Cyber-breach charge costs Marriott: Marriott International reported Q2 earnings, lowering projections and stating earnings per share fell to 69 cents, compared with US$1.87 in the year-ago quarter, after the company took a one-time charge of US$126 million related to the cyber-breach in one of its reservation databases. Results also suffered due to great-than-expected currency exchange rates. Second half guidance suggested slightly lower net unit growth expectations, somewhat moderated return of capital guidance, and the uncertainties regarding the data breach fines. RevPAR growth was 1.2% and guidance was revised to 1% to 2%. Net unit growth now 5%-5.5% due to construction delays in North America and the Middle East/Africa regions.
Commission on fees begin: Booking Holdings confirmed on Monday that the company has begun to charge hotels commissions on mandatory extra/hidden fees around the world except for some properties in the United States.
KSL acquires French luxe portfolio: KSL Capital Partners has acquired Les Hôtels d’en Haut from European hotel developer, owner and operator Perseus Group for an undisclosed amount. This is KSL’s first significant acquisition in continental Europe. Les Hôtels d’en Haut operates five boutique leisure hotels in the French Alps and the French Riviera. With a range of 30 to 80 rooms and suites, the portfolio includes a total of 245 hotel rooms.
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IHG soft in Asia, boosts openings: InterContinental Hotels Group reported US$13.6 billion in total gross revenue for Q2 2019, while global RevPAR for the first half of the year stood at a 0.1% increase. It cited a slowdown in business travel in China amid a trade war with the U.S. and protests in Hong Kong. RevPAR fell 0.5% in greater China in the second quarter, while first-half revenue fell marginally in Hong Kong. Overall, first-half revenue of US$1.01 billion was in line with estimates and IHG stated confidence in expected results for the second half of the year. It boosted its interim dividend by 10%. It also cited the company’s best first half performance for openings and signings in more than a decade, with a 5.7% increase in net system size growth bringing us to 5,700-plus hotels globally (856,000 rooms).
Choice earnings beat: Choice Hotels International reported quarterly earnings of US$1.19 per share, beating consensus estimates as well as the US$1.11 per share a year ago. 2Q adjusted EBITDA of US$100.4 million was also above estimates. However, domestic RevPAR was -0.1% versus guidance of -1% to +1%. The number of domestic franchised rooms was +2% y/y and international was +5.4%. Net domestic unit organic growth guidance of +2-3% has been lowered to approximately +2%.
Cambria to Spokane: Choice Hotels International has signed an agreement with Brar Hotels Group to develop a Cambria hotel in Spokane, Washington. The four-story, 91-room hotel is slated to open in 2020.
Deutsche grows in Geneva: Deutsche Hospitality has announced the second IntercityHotel will be launched in Geneva, Switzerland in 2022. The IntercityHotel Geneva Airport will be located in the new Quartier de l’Étang between the airport and the city centre and will boast a total of 270 rooms.
Red Roof guarantee: Red Roof has upped the price match guarantee game with its enhanced RediPromise, a promise to its guests that they can find the lowest rates, best price, by booking directly through Red Roof. If a guest finds a lower rate, within 24 hours of booking a room, Red Roof will not only match the lowest price offered online but will also gift guests with 7,000 points, good for a free night’s future stay at any Red Roof Inn or Red Roof PLUS+ or 14,000 points for a free night at a Red Collection hotel.