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Year-End Results Show Positive Industry Uptick

Year-End Results Show Positive Industry Uptick

Hilton Worldwide
– System-wide comparable RevPAR increased 5.2 percent in 2013.
– Revenues for the full year grew to $9.73 billion and were up 13 percent in the fourth quarter.
– The company approved 72,000 rooms for development in 2013, including 22,000 in the fourth quarter, growing the development pipeline to over 1,100 hotels.

2014 Outlook: Global RevPAR is expected to increase 5 to 7 percent. The number of managed and franchised rooms is expected to expand by 5.5 to 6.5 percent on a net basis.

Company Statement: “We are very pleased with our fourth quarter and full year results in 2013, concluding the year with a successful initial public offering in December,” said Christopher J. Nassetta, president and CEO, Hilton Worldwide. “We delivered strong RevPAR, margin and net unit growth during the year that led to Adjusted EBITDA growth of 13 percent on a year over year basis.”


Starwood Hotels and Resorts Worldwide
– RevPAR for Starwood’s same-store owned hotels grew 5.8 percent. Worldwide system-wide RevPAR for same-store hotels increased 5.3 percent.
– Revenues for the full year declined 3.3 percent to $6.12 billion from $6.32 billion in the previous year.
– The company signed 152 hotel management and franchise contracts, representing approximately 32,200 rooms.

2014 Outlook: The company expects increases at same-store company-operated hotels worldwide of 5 percent to 7 percent. At same-store owned hotels worldwide of 4 percent to 6 percent.

Company Statement: “Starwood had a strong year in 2013. We exceeded our profit expectations, despite a tepid global business environment, exchange rate headwinds, and the effect of having sold six hotels,” said CEO Frits van Paasschen. “Occupancies in North America reached record levels for the third straight quarter, and in a weak economic environment occupancies in Europe remained high. In Latin America, Asia Pacific, Africa, and the Middle East, we delivered strong footprint and fee growth.”


InterContinental Hotels Group
– Global RevPAR increased 3.4 percent, with a boost of 4.2 percent in the U.S.
– Revenues reached $1.9 billion in 2013, up 3.7 percent from 2012.
– Signed 65,000 rooms (444 hotels), up 22 percent year-over-year. Continued to dispose of owned hotels, including the sale of the InterContinental Mark Hopkins San Francisco for $120 million.

2014 Outlook: Despite uncertain economic conditions in some markets, IHG CEO Richard Solomons said that he expects 2014 “will deliver another year of growth.”

Company Statement: “2013 marked IHG’s tenth anniversary as a standalone company, and was another year of strong performance,” said Solomons. “We delivered good underlying growth in revenues and profits, further reduced the capital intensity of the business and continued to generate high returns.”

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