Debating double dip

The double dip debate is dominating investor thoughts over the summer, as earlier optimism about a sharp-recovery makes way for wider worries such as sovereign defaults.
    Trading has rebounded strongly, and some operators are already talking about a pronounced bounce, but with government cuts and still constrained lending, it is probable that a hard road lies ahead.

Rezidor reports rate growth

Rezidor said it had seen a “marginal” increase in rate, after reporting second quarter revpar increase by 6.8% to Eu67.1 (£56.6).
    The increase was largely drive by like-for-like occupancy, which rose by five percentage points to 67.7%. Rate fell by 1.2%, with the group commenting that occupancy development accelerated in the latter part of the quarter and the rate decline slowed down as the quarter progressed.

Marriott began rate increases in May

Marriott International’s second quarter results raised hopes of a nascent recovery in the US lodging sector, with the group reporting net income up by 42% on the year to $119m (£79m), up from $37m in Q2 2009.
    The previous year’s adjusted results excluded $57m pre-tax in restructuring costs and other charges. Operating income rose by 46% to $226m, with Ebitda up by 26% to $278m.

Starwood raises estimates as rates grow

Starwood Hotels & Resorts has raised its full-year estimates after delivering second quarter results ahead of expectations, with the group seeing an increase in business travel.
    The company reported its first increases in ADR since Q3 2008, up 1.6% to $158.54, with occupancy increasing by seven percentage points to 68.8%. In Europe rates were down 3% to $208.65, with occupancy up six percentage points to 68.7%.

Host moves into profit

Host Hotels & Resorts moved into profit in the second quarter, with net income at $20m, compared to a net loss of $69m in the previous year.
    Revenue increased by 6% on the quarter to $63m, with the real estate investment trust said that adjusted Ebitda was $250m, a drop of $6m on the same period last year.
   

M&B deal is further consolidation

The deal to sell 52 hotels to investors and lease them onto Travelodge has further consolidated the UK economy hotel market.
    Increasingly, the market is now a two horse race between Premier Inn and second-placed Travelodge. IHG's Express and Accor's Ibis and Etap are significantly trailing.
   

Accor reports under new model

Accor's hotel revenue in the first-half of 2010 was up 7.5% (5.1% like-for-like) as the recovery gained momentum during the period.
    These numbers were the first reported since Accor emerged at the end of June as a transformed company, shorn of its services business and focused on becoming Europe’s leading hotel franchisor and one of the world’s three leading hotel groups.