Q3 reports from various hotel companies as well as various REITs show great performance and outlook for the hospitality industry. Topping the list was Hyatt Hotels with net income was $32 million during Q3. RevPAR increased 7.6% year over year. Hyatt which sold its Hyatt Residential Group and other assets also announced openings of eleven hotels in the quarter. “The global economic environment continues to be healthy for travel demand, particularly in the U.S.” said Mark Hoplamazina, president and CEO of Hyatt Hotels. “We continue to open new hotels in important markets”. Also, Hyatt currently continues to be active on the transaction side as they have seven full service and select service hotels listed for sale.
Q3 also is a banner quarter for REITs, with Host Hotels & Resorts leading the way. Host’s net income increased to $144 million a significant growth from same period last year which was $19 millioin. Other performance indicators also showed significant growth. At FelCor Lodging Trust adjusted EBITDA increased to a stunning $61.1 million an increase of $6.3 million. Significantly up for previous comparable periods. FelCor sold three non strategic hotels and also agreed to sell three more with aggregate gross proceeds of $102 million. According to Richard Smith president and CEO of FelCor, “I am very pleased with our performance in the third quarter. This strong growth reflects the successful execution of our strategic plan and transformation of our portfolio”.
Marriott, Hersha, and others have also reported great period over period growth and performance. It looks like the industry is healthy and sees nothing but blue skies.