The third quarter of 2023 proved both challenging and advantageous for top U.S. hotel companies.
During the quarter, Choice Hotels International took its bid to buy Wyndham Hotels & Resorts public, stirring the industry pot and leaving many wondering about the potential impacts on the companies’ shareholders and franchisees.
Despite the public rumble, Wyndham came out of the third quarter with strong performance results, including record pipeline growth. Choice did too, posting year-over-year revenue growth.
Several of Wyndham’s peers also saw record pipeline growth in the quarter, including Hilton, Marriott and Hyatt. IHG Hotels & Resorts saw development growth in Q3 as well, though on a lesser scale.
IHG, Hilton, Marriott and Hyatt all attributed their Q3 pipeline growth in part to heighted conversion demand. Hilton noted that 35% of its 35,500 rooms signed in the quarter were conversions, while Marriott said conversions represented 20% of signings and nearly 30% of its openings in the quarter.
Developers remained bullish on extended stay development during Q3 as well, with IHG, Hilton and Wyndham all citing strong demand for the product type. Wyndham particularly signed 60 new construction projects for its Echo Suites extended stay brand during the quarter.
IHG, Hilton, Marriott and Hyatt all expanded in the burgeoning luxury and lifestyle segments in Q3 and plan to further grow in the space in the fourth quarter and beyond.
For Las Vegas resort operators MGM Resorts International, Caesars Entertainment and Wynn Resorts, the third quarter brought challenges, including cybersecurity concerns and labor woes. All three companies skirted a potential workers’ strike, though, and anticipate future growth from upcoming events in Vegas like Formula 1’s Grand Prix and the Super Bowl.
Below is a roundup of Hotel Dive’s coverage of these top hotel companies’ third-quarter 2023 earnings results — and the hospitality industry trends that drove their performance.