On Friday Kayak.com went public on the Nasdaq stock market listed under the ticker symbol “KYAK”. Its shares were up 16%, valuing the company at almost $1.3 billion. Kayak offered 3.5 million shares, initially priced at $26, raising $91 million in its IPO.
It was a good day for a tech IPO in a market where the shares of Facebook are down almost 24 percent, after its May IPO, and Groupon has shed more than 60 percent of its value since November.
Between April and June, the company handled 304 million queries, up 33% from the previous year, and earned revenues of approximately $75 million.
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Starwood Hotels & Resorts Worldwide topped profit estimates for the first quarter as strength in the Americas helped offset softness in Europe, and the company raised its outlook for a key revenue measure, sending its shares up more than 2 percent.
A business-led recovery has helped lift U.S. hotel occupancy rates and aided an industry whose financing challenges have slowed construction.
Chart: Starwood Quarterly Revenue (USD)
Starwood, which franchises hotels under brands such as Sheraton, W and Westin, was upbeat that travel is continuing on an upswing fueled by the global economic recovery.
“Despite the headlines and uncertainty, our business is better than some might think,” Chief Executive Officer Frits van Paasschen told analysts during a conference call on Thursday.
“We believe we’re on the cusp of a golden age of global travel,” van Paasschen added.
Starwood projected growth of 6 percent to 8 percent in worldwide revenue per available room, or revPAR, for company-operated hotels open at least a year, up from a prior forecast of a 5 percent to 7 percent increase. That metric multiples occupancy rate by room rate.
Net income was $128 million, or 65 cents a share, in the first quarter, compared with $28 million, or 14 cents a share, a year earlier.
By region, revPAR rose 7.1 percent in North America, 14.4 percent in Latin America and 6.7 percent in Asia-Pacific. Europe revPAR was down 1.9 percent.
Complete Article & Source: http://www.reuters.com/article/2012/04/26/starwoodhotels-idUSL2E8FQ0ED20120426read more
Its stock has briskly snapped back and jumped on Mar. 26, 2012, a whisker away from its 52-week high of $38.64 a share, closing at $38.62, way up from its 52-week low of $25.49 hit on October 2011. LaFleur sees Marriott’s shares continuing to climb, to his 12-month target of $41, based on earnings and revenue growth.
Chart: Marriott North America Quarterly ADR and RevPar Growth
While its international footprint is growing, Marriott generates the vast majority of its earnings in the U.S. Its hotels in Europe and the Middle East, two troubled regions, only produce about 10% of Marriott’s fees, notes the analyst. He figures Marriott can increase franchise and base nmanagement fees by some 10% a year on revenue growth and opening of new units.
“The bigger prize is the 20%-25% annual incentive free growth that we predict, as hotel profits recover from the 2008-2009 downturn, and as Marriott opens more managed-properties overseas,” says LaFleur. Marriott is now very focused, notes the analyst, on aggressive expansion overseas as only 22% of its rooms are located outside North America. Half of Marriott’s pipeline projects are now located in foreign markets, and more importantly, 85% of the more lucrative full-service pipeline is projects outside North America, says LaFleur. The development pipeline currently has 110,000 rooms, which represent 18% of Marriott’s total existing room base.
Fourth quarter Wyndham revenues increased 7% from the prior year period to $1.0 billion. The increase reflects organic growth in the Company’s Lodging and Vacation Ownership businesses and incremental contributions from acquisitions at its Vacation Exchange and Rentals business.
Chart: Wyndham Quarterly Revenue Growth
Reported net income for the fourth quarter of 2011 was $56 million, or $0.37 per diluted share, compared with net income of $78 million, or $0.43 per diluted share, for the fourth quarter of 2010.
Reported revenues for full year 2011 were $4.3 billion, an increase of 10% over the prior-year period. The revenue increase resulted from higher RevPAR in the Lodging business, higher Vacation Ownership Interest (VOI) sales and Wyndham Asset Affiliation Model (WAAM) commissions in the Vacation Ownership business, and contributions from acquisitions along with higher average net price per vacation rental in the Vacation Exchange and Rentals business.
Reported net income for full year 2011 was $417 million, or $2.51 per diluted share, compared with net income of $379 million, or $2.05 per diluted share, for the prior-year period.
For the year ended December 31, 2011, cash provided by operating activities was $1.0 billion compared with $635 million for the prior-year period.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $188 million in the fourth quarter of 2011, an increase of 15%, compared with the fourth quarter of 2010, reflecting a RevPAR improvement of 5% and revenues associated with the newly opened Wyndham Grand hotel in Orlando. The revenue increase also included a $15 million reclassification, primarily related to certain reservation fees, which had no impact on EBITDA.
As of December 31, 2011, the Company’s hotel system consisted of 7,205 properties and over 613,100 rooms. The development pipeline included nearly 850 hotels and 111,900 rooms, of which 57% were new construction and 60% were international.
Vacation Exchange and Rentals (Wyndham Exchange & Rentals)
Revenues were $291 million in the fourth quarter of 2011, an increase of 3% compared with the fourth quarter of 2010. In constant currency and excluding the impact of acquisitions, revenues were flat.
Exchange revenues were $150 million, a decrease of 2% compared with the fourth quarter of 2010. The average number of members was flat. In constant currency, exchange revenues and exchange revenue per member were also flat.
Vacation rental revenues were $125 million, a 10% increase compared with the fourth quarter of 2010. Excluding the impact of foreign currency and acquisitions, vacation rental revenues were flat as a 5% increase in the average net price per vacation rental was offset by a 5% decline in vacation rental transactions.
Adjusted EBITDA for the fourth quarter of 2011 decreased $4 million compared with the prior-year period, reflecting the impact of unfavorable foreign currency and the seasonality of recently acquired businesses.
Vacation Ownership (Wyndham Vacation Ownership)
Revenues were $527 million in the fourth quarter of 2011, a 6% increase over the fourth quarter of 2010, reflecting increased VOI sales and WAAM commissions.
Gross VOI sales were $409 million in the fourth quarter of 2011, up 10% from the fourth quarter of 2010, primarily reflecting an 8% increase in tour flow and a 4% increase in volume per guest.
EBITDA for the fourth quarter of 2011 was $139 million, compared with EBITDA of $131 million in the fourth quarter of 2010, a 6% increase. EBITDA growth includes contributions from increased VOI sales and WAAM commissions.
Full Article & Source: http://www.hotelnewsnow.com/Articles.aspx/7482/Wyndham-reports-15-boost-in-Q4-revenueread more
In a long-anticipated move, six of the hotel industry’s biggest brands have come together to offer consumers a new channel by which to search and price hotel rooms. Roomkey.com will offer the ability to search, shop and compare hotel rooms from all of the major brands and still allow consumers to book direct.
With Wednesday’s launch of Roomkey.com, the biggest implication for hoteliers is bookings will be pushed direct rather than through intermediaries, which Roomkey.com CEO John F. Davis said will result in commissions “significantly less than that what would be considered market.”
Offering rates and availability direct to Roomkey.com are Choice Hotels International, Hilton Worldwide, Hyatt Hotels Corporation, InterContinental Hotels Group, Marriott International and Wyndham Hotel Group, all of which are listed as “founders” in Roomkey.com’s first news release.
Steve Sickel, senior VP of distribution and relationship marketing for InterContinental Hotels Group, said brands’ direct websites don’t compete on the ability to offer choice of brand. Roomkey.com, however, gives the customer “the choice that they’re looking for and the confidence of booking direct.”
Davis said Roomkey.com was “somewhat” a reaction to Google’s foray into the travel space, but the big difference between Google and Roomkey.com is that Google isn’t being driven by hoteliers; Roomkey.com will operate via a direct connection to hoteliers’ inventory.
Chart: Google Revenue and EBIT Growth
Chart: Priceline Hotel Room Night Growth by Quarter
Both Davis and Lugli stopped short of saying Roomkey.com will allow revenue managers to reduce the amount of inventory given to OTAs or Google, rather it will be another—more cost-effective—channel to assist in finding the optimal channel mix for each individual property. “It doesn’t really change how we advise our revenue managers,” Lugli said. “Roomkey.com is just another tool for us to drive direct business, along with several other initiatives underway, including the relaunch of our direct websites.
Source and Full Article: http://www.hotelnewsnow.com/Articles.aspx/7284/Brands-team-to-launch-Roomkeycom-hotel-search
PKF-HR believes that RevPAR in the U.S. will increase by 8.1 percent in 2011, and rise another 6.2 percent in 2012.
Chart: Marriott North America – ADR & RevPar Growth
“The ongoing recovery of U.S. hotels in 2011 has continued to slightly outpace our forecasts. The 8.1 percent revised RevPAR forecast for the current year represents a 90 basis point increase over our previous forecast released earlier this year,” said R. Mark Woodworth, President of PKF-HR.
Because of the accelerated performance in 2011, the PKF-HR forecast change in RevPAR for 2012 has been lowered 110 basis points from 90 days ago to still-attractive 6.2 percent. “We remain very positive about the prospects for 2012. By the end of next year, the industry RevPAR level will be where we always thought it would be. It’s just getting there more quickly, thus the reduced year-over-year percentage change.”
Gaylord Entertainment (NYSE:GET) is highest with future earnings growth of 123.5%. Gaylord Entertainment Company owns and operates branded hotels in multiple states. The Company also owns and operates several attractions in Nashville, including the Grand Ole Opry, a live country music variety show.
Following is Hyatt Hotels (NYSE:H) with future earnings growth of 49.7%.
In the past 52 weeks, shares of Gaylord Entertainment have traded between a low of $17.39 and a high of $38.22 and are now at $20.99, which is 21% above that low price. The 200-day and 50-day moving averages have moved 0.95% lower and 0.83% lower over the past week, respectively.
There is potential upside of 23.5% for shares of Hyatt Hotels based on a current price of $35.13 and an average consensus analyst price target of $43.40. Hyatt Hotels shares should encounter resistance at the 200-day moving average (MA) of $38.94 and support at the 50-day MA of $34.11.
Finishing up the top three is eLong (NASDAQ:LONG), with future earnings growth of 29.7%. Thus far today, eLong has traded 2,000 shares, vs. average volume of 13,000 shares per day. The stock has matched the Dow (with a 3.7% move) and matched the S&P 500 (with a 3.7% move) during today’s trading.
Michael Gross, CEO of the Company, said: “Our hotels continued to perform well in the quarter and we made significant progress in positioning the company for growth. We have further reduced our leverage, eliminated all near-term consolidated debt maturities and improved our liquidity position. We are now focused on enhancing our status as a global leader in lifestyle hospitality management. We are excited about the opportunity to add more contracts and expand our Hudson, Mondrian and Delano brands around the world.”
Chart: Morgan Hotel Group Total Revenue
Adjusted EBITDA( )for the third quarter of 2011 was $4.9 million, a decrease of 56.1% from the same period in 2010. Excluding the EBITDA contribution from the three hotels MHG sold in May 2011, EBITDA from the London hotels, which are held for sale, and from Hard Rock Hotel & Casino in Las Vegas, which the Company managed and partially owned until March 2011, Adjusted EBITDA increased by $1.0 million from the third quarter of 2010, or 56.5%. This increase was due to strong operating results at Delano and the strong ramp-up at our new Mondrian hotel in New York’s SoHo neighborhood.
RevPAR at System-Wide Comparable Hotels increased by 9.3% (8.4% in constant dollars) in the third quarter of 2011 compared to the third quarter of 2010, driven primarily by gains in ADR, which increased by 6.3% (5.4% in constant dollars).
This past couple of weeks we had a few interesting data points released from Brazil and China – two of the regions of the world that continue to drive the global economy as it recovers from the financial crisis.
Brazil defies the global economic slow down – TAM and GOL released their July monthly traffic numbers. Impressive growth in the Brazilian market and TAM and GOL continue to represent approximately 80% of the domestic market. TAM domestic ASK and RPK’s grew at 10.6% and 13.7% respectively year over year. GOL ASK and RPK’s grew at 9.2% and 21.4% respectively year over year. All this before the 2014 World Cup and 2016 Olympics provide another boost to capacity in this hot market. South American market traffic is expected to continue to grow overall at 7% annually for the next several years. View TAM traffic data, and view GOL traffic data.
China Economy Hotel Market Booming – Home Inns (NASDAQ:HMIN) announced their second quarter results and strong growth in revenues and properties. Revenue is up 12.2% year over year (RMB) and 88 new properties (28 new leased-and-operated hotels and 60 new franchised-and-managed hotels) were opened in the second quarter for a total of 934 properties. Occupancy was running at 94% in 2Q and the average daily room rate was at approximately $26.78 (173 RMB), down slightly from $27.40 (177 RMB) in 2Q 2010. Home Inns is the largest economy hotel chain in China and one of the largest economy hotel chains in the world now. Home Inns will expand even more rapidly with a recent acquisition of another Chinese chain which will add 280+ more properties to their portfolio. View Home Inns financial results.
Cathay Pacific Solid 1st Half of 2011 – Cathay Pacific also recently reported their 1st half 2011 results. Cathay is increasing capacity with total ASK’s up 9.8% year over year. Fuel costs were up 41% year over year but much of this was passed through as fuel surcharges and revenue was up 15.9% year over year. Operating profit for the first half of the year was the second best in the past 10 years of results at HK$2.8B. Cathay also continues to benefit from their 19% stake in Air China with this contributing significantly to first half results. Their Air China investment is now valued at HK$14.2B ($1.82B USD), up 13% from 1Q 2011. Cathay remains cautious about their outlook due to rising fuel prices and global economic volatility but states that July was strong and August looks good as well. View Cathay’s financial results.
Here’s hoping that we will continue to see these types of heady numbers from these emerging markets.read more