Earnings roundup: Giants report mixed Q4 results

Mixed results best sums up Q4 2015 results as several of the major public hotel companies reported earnings on Thursday, including Marriott International, Starwood Hotels & Resorts, Hyatt Hotels Corp. and AccorHotels.

Marriott reported earnings of US$202 million or US$0.77 per share, up from net profits of US$197 million or US$0.68 over the same quarter a year earlier. Marriott narrowly topped analysts’ forecasts for per share earnings of US$0.76 on the period. Its Q4 revenues rose to US$3.7 billion, up 3.3% on an annual basis. Analysts expected the company to finish with revenues of US$3.72 billion for the period. Marriott RevPAR increased by 4% on a comparable hotel basis.

“We are encouraged by recent demand trends,” Marriott CEO Arne Sorneson said in a statement. “Group RevPAR in North America increased 6% in the quarter and new group bookings for future business increased 10% year-over-year.”

Sorenson said group booking pace for the company’s full-service hotels is up 7% in 2016 compared to 2015. Based on negotiations completed to date, he expects special corporate rates across our North American hotels will increase at a mid-single digit rate in 2016.

AccorHotels said Thursday it continues to suffer from the fallout of November’s terrorist attacks in Paris. Nonetheless, it reported a rise in earnings in Q4 2015 that reflects recent turnaround efforts and improved revenue in other key regions.

Accor reported a sharp 6.6% drop in fourth-quarter sales in France, leading to a 0.5% drop for the year. “We’re set for a better January but it remains a gradual improvement,” said Chief Financial Officer Jean-Jacques Morin.

Still, the company said Thursday its turnaround efforts paid dividends in 2015 as it reported a 9.4% jump in net profit to €244 million ($271.6 million), up from €223 million in 2014.

Starwood Hotels & Resorts reported Q4 results that showed profits declined 29% versus last year but it still beat the Street view on earnings per share as total revenues fell in line with expectations. The company reported Q4 adjusted net income US$0.89 per share, exceeding analyst estimates of US$0.79. On a GAAP basis the company reported net income of US$151 million, or US$0.89 per share, down from US$171 million, or US$0.97 per share, in Q4 2014.

Total revenues of US$1.43 billion were down from US$1.49 billion in Q4 2014 but in line with analyst projections of US$1.43 billion. For Q1 EPS is expected to be approximately US$0.56 to US$0.59. For the full year 2016 EPS before special items is expected to be approximately US$2.74 to US$2.84.

Meanwhile, Hyatt Hotels Corp. reported an 80% fall in profit for the fourth quarter from last year when results benefited from a one-time gain on sale of real estate. Adjusted earnings for the quarter missed analysts’ expectations.

Hyatt reported net income attributable to the company for the fourth quarter of US$37 million or US$0.26 per share, down from US$182 million or US$1.20 per share last year.

On an adjusted basis, earnings for the quarter were US$30 million or US$0.21 per share, compared to US$47 million or US$0.31 per share in the year-ago period. Analysts expected the company to earn US$0.24 per share.

Revenue for the quarter was US$1.11 billion, up from US$1.08 billion last year. Wall Street analysts were looking for US$1.10 billion.

For fiscal 2016, Hyatt projects comparable systemwide RevPAR is expected to increase about 3% to 5%, excluding the effect of currency, as compared to fiscal year 2015.