Hotel Companies Release Q4 2021 and Full-Year Earnings Results

As the hotel industry dives into 2022, multiple hotel companies and brands released Q4 2021 and full-year earnings results. Here is a summary of the information shared by the companies:

Choice

Choice Hotels International, Inc. reported its results for Q4 2021 and the full year of 2021. Highlights from the results include (RevPAR and financial metrics are compared to 20191):

  • Domestic systemwide RevPAR growth increased by 2.2 percent for full-year 2021, compared to the same period of 2019, exceeding full-year 2021 guidance by 120 basis points and outperforming the total industry by 19 percentage points.
  • Q4 2021 domestic systemwide RevPAR growth increased 13.9 percent compared to the same period of 2019, driven by an increase in ADR of 9.5 percent and a 210-basis-point increase in occupancy levels versus Q4 2019. RevPAR growth surpassed 2019 levels for the last seven months of 2021, a trend that has continued in the first quarter of 2022.
  • The company’s domestic effective royalty rate for full-year 2021 increased 7 basis points over the prior year to 5.01 percent and reached 5.04 percent during Q4 of 2021.
  • The company continues to execute its strategy of growing its more revenue intense brands with new units entering the Choice Hotels’ system in 2021 driving, on average, twice the revenue as units exiting the system.
  • The company awarded 528 domestic franchise agreements in 2021, a 24 percent increase compared to the prior year. Of the total agreements awarded in 2021, 83 percent were for the company’s upscale, midscale and extended-stay brands. For full-year 2021, the company’s domestic franchise agreements for conversion and new construction hotels increased by 17 percent and by 39 percent, respectively, compared to the same period of 2020.
  • Net income was $64.1 million for Q4 2021 and reached a company record of $289 million for full-year 2021, representing diluted EPS of $1.14 and $5.15, respectively.
  • Adjusted EBITDA for full-year 2021 reached a company record of $403.6 million, an 8 percent increase from the same period of 2019, exceeding the top end of the company’s full-year 2021 guidance by nearly $17 million. Adjusted EBITDA for the fourth quarter was $95.5 million, a 14 percent increase from Q4 2019.
  • Adjusted EBITDA margin for full-year 2021 reached a company record of 74.7 percent, a 520-basis-point increase from the same period of 2019.
  • Q4 2021 and full-year 2021 adjusted diluted EPS was $0.99 and $4.29, respectively.
  • During full-year 2021, the company returned $38.4 million to shareholders in the form of cash dividends and share repurchases and announced a 6 percent increase in its quarterly dividend rate beginning in January 2022.
Hilton

Hilton Worldwide Holdings Inc. reported its Q4 and full-year 2021 results. The following results reflect the material impact that the COVID-19 pandemic has had on Hilton’s business. Highlights include:

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  • Diluted EPS was $0.52 for the fourth quarter and $1.46 for the full year, and diluted EPS, adjusted for special items, was $0.72 for the fourth quarter and $2.08 for the full year.
  • Net income was $148 million for the fourth quarter and $407 million for the full year
    Adjusted EBITDA was $512 million for the fourth quarter and $1,629 million for the full year.
  • System-wide comparable RevPAR increased 104.2 percent and 60.4 percent, on a currency-neutral basis, for the fourth quarter and full year, respectively, from the same periods in 2020.
  • System-wide comparable RevPAR was down 13.5 percent and 30.0 percent, on a currency-neutral basis, for the fourth quarter and full year, respectively, compared to the same periods in 2019.
  • Approved 26,000 new rooms for development during Q4 2021, bringing Hilton’s development pipeline to 408,000 rooms as of December 31, 2021.
  • Added 16,100 rooms to Hilton’s system in the fourth quarter, contributing to 55,100 net additional rooms in Hilton’s system for the full year, which represented 5.6 percent net unit growth from December 31, 2020.
  • Full-year 2022 net unit growth is expected to be approximately 5 percent.
Marriott International

Marriott International, Inc. reported Q4 2021 results. Highlights include:

  • Q4 2021 comparable systemwide constant dollar RevPAR increased 124.5 percent worldwide, 143.6 percent in the United States and Canada, and 83.3 percent in international markets, compared to Q4 2020.
  • Q4 2021 comparable systemwide constant dollar RevPAR declined 19.0 percent worldwide, 15.3 percent in the United States and Canada, and 28.2 percent in international markets, compared to Q4 2019.
  • Q4 2021 reported diluted EPS totaled $1.42, compared to reported diluted loss per share of $0.50 in the year-ago quarter. Q4 2021 adjusted diluted EPS totaled $1.30, compared to Q4 2020 adjusted diluted EPS of $0.12.
  • Q4 2021 reported net income totaled $468 million compared to the reported net loss of $164 million in Q4 2020. Q4 2021 adjusted net income totaled $430 million, compared to Q4 2020 adjusted net income of $39 million.
  • Adjusted EBITDA totaled $741 million in Q4 2021, compared to Q4 2020 adjusted EBITDA of $317 million.
  • The company added more than 86,000 rooms globally during 2021, including approximately 43,000 rooms in international markets and a total of over 18,000 conversion rooms. Net rooms grew 3.9 percent from year-end 2020.
  • At year-end, Marriott’s worldwide development pipeline totaled 2,831 properties and roughly 485,000 rooms, including approximately 19,000 rooms approved, but not yet subject to signed contracts. More than 202,000 rooms in the pipeline were under construction as of the end of 2021.
Wyndham Hotels & Resorts

Wyndham Hotels & Resorts today announced results for the three months and year ended December 31, 2021. Highlights include:

  • U.S. RevPAR for the quarter exceeded 2019 levels by 9 percent, growing 58 percent versus 2020.
  • System-wide rooms grew 180 basis points year-over-year, including 70 basis points of growth in the United States and 350 basis points of growth internationally.
  • Diluted earnings per share for the quarter of $0.52 and net income of $48 million; diluted EPS for the full-year of $2.60 and net income of $244 million.
  • Adjusted diluted earnings per share of $0.69 for the quarter and adjusted net income of $64 million; adjusted earnings per share for the full-year of $3.16 and adjusted net income of $297 million.
  • Adjusted EBITDA of $131 million for the quarter and $590 million for the full year.
  • Net cash provided by operating activities for the full year of $426 million and free cash flow of $389 million.
  • Returned over $190 million to shareholders for the full year through share repurchases and dividends.
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