In the third quarter of 2024, hotel companies saw their pipelines grow to record sizes, with hotel conversions leading growth, and RevPAR increase, bolstered by healthy group travel and luxury hotel demand.
Marriott International, Choice Hotels International and Wyndham Hotels & Resorts all reached new pipeline highs in Q3, with signings at strong levels in the quarter. IHG Hotels & Resorts and Hyatt Hotels also grew their global pipelines.
Hotel conversions played a key role in rooms growth for the companies, with franchisees seeing the alternative to new construction as a quick way to grow scale, according Choice Hotels CEO Patrick Pacious. Conversions will continue to see strong momentum into Q4 and beyond, Wyndham CEO Geoff Ballotti noted during an earnings call.
Extended stay was top of mind for Choice and Wyndham franchisees as well in the third quarter. Hyatt and Hilton, meanwhile, continued their respective pushes in the rapidly expanding lifestyle segment through brand acquisition and openings.
Beyond development growth, group travel buoyed Q3 RevPAR gains for several hotel companies, including Marriott, Hyatt and IHG. Marriott CEO Anthony Capuano called the continued strength of group travel “a really encouraging sign.”
In Las Vegas, specifically, operators MGM Resorts International, Caesars Entertainment and Wynn Resorts all noted that strong group business contributed to the market’s hotel performance in Q3. Demand from high-end consumers boosted Wynn specifically, and sports tourism became a greater opportunity for MGM, the companies’ CEOs said.
Looking ahead, hotel leaders expect group and business travel will continue to recover in 2025. This month’s presidential election, though, could impact travel, and, in effect, alter Q4 revenue results, CEOs forecasted.
Below is a roundup of Hotel Dive’s coverage of top hotel companies’ third-quarter 2024 earnings results, with insights into what hospitality trends took shape in Q3 and how they will influence the industry in coming quarters.
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