By BW Hotelier MARRIOTT INTERNATIONAL, Inc reported third quarter 2015 results. Third quarter 2015 net income totalled USD 210 million, a nine-per cent increase over 2014 third quarter net income.- Diluted earnings per share (EPS) in the third quarter totalled USD 0.78, a 20 per cent increase from diluted EPS in the year-ago quarter.- On July 29, 2015, the company forecasted third quarter diluted EPS of USD 0.72 to USD 0.76. Arne M. Sorenson, President and Chief Executive Officer of Marriott International, (see photo) said, ’Our company posted solid performance in the third quarter.- North American system wide RevPAR rose over 4 per cent despite the impact of unfavourable holiday shifts on our group business compared to the year-ago quarter.- Our hotels are full with occupancy at nearly 78 per cent allowing us to continue to raise rates and reduce lower-rated business to drive RevPAR. ’Our global development pipeline continues to increase, reaching more than 260,000 rooms at the end of the quarter as owner and franchisees continue to choose our brands.- Combined, our pipeline and open rooms exceed one million rooms worldwide.- Recently unveiled in the U.S., Moxy and AC Hotels have a combined five hotels open and 82 hotels signed or approved domestically.- Our newest brand, Delta Hotels, expects to open its first U.S. property later this year, a conversion from a competitor’s brand. ’Our asset-light business model continues to deliver significant profit growth with modest capital requirements, yielding outstanding return to shareholders.- For the full year 2015, we expect to return more than USD 2.25 billion to shareholders through dividends and share repurchases, a record, which would bring our total return to shareholders to nearly USD 8 billion over the last 5 years.- Over the last 12 months, our return on invested capital has totalled 47 per cent. ’For 2016, we expect system wide constant dollar RevPAR will increase 4 to 6 per cent in North America, outside North America and worldwide.- Our group bookings for our North American full-service hotels for 2016 are up more than 7 per cent with about 75 per cent of expected group business volume booked thus far. ’Given our strong development pipeline, we anticipate our number of rooms will increase 7 to 8 per cent, gross, in 2015, including the 9,600 rooms from the Delta acquisition, accelerating to 8 per cent, gross, in 2016.- Nearly 40 per cent of our more than 260,000 room pipeline is already under construction.’ For the 2015 third quarter, RevPAR for worldwide comparable system wide properties increased 4.5 per cent (a 2.2 per cent increase using actual dollars). International comparable system wide RevPAR rose 6.2 per cent (a 4.0 per cent decline using actual dollars) in the third quarter. -International RevPAR growth was helped during the quarter by the earlier start of Ramadan and very strong demand in Europe. Marriott added 68 new properties (10,253 rooms) to its worldwide lodging portfolio in the 2015 third quarter, including Mandapa, A Ritz-Carlton Reserve in Indonesia and The Hotel Lucerne, Autograph Collection in Switzerland.- Twenty-one properties (2,596 rooms) exited the system during the quarter.- At quarter-end, the company’s lodging system encompassed 4,364 properties and timeshare resorts for a total of 750,000 rooms. The company’s worldwide development pipeline totalled 1,591 properties with more than 260,000 rooms at quarter-end, including nearly 600 properties with roughly 95,000 rooms under construction and over 100 properties with approximately 20,000 rooms approved for development, but not yet subject to signed contracts. Worldwide comparable company-operated house profit margins increased 50 basis points in the third quarter with higher room rates, improved productivity, and lower food and utility costs.- House profit margins for comparable company-operated properties outside North America increased 60 basis points and North American comparable company-operated house profit margins increased 40 basis points from the year-ago quarter. For the 2015 fourth quarter, the company expects worldwide comparable system wide RevPAR to increase 4 to 6 per cent on a constant dollar basis.- Outside North America, the company expects comparable system wide constant dollar RevPAR to increase 3 to 5 per cent.- Compared to the fourth quarter RevPAR guidance provided on July 29, today’s fourth quarter outlook for our international regions assumes more moderate RevPAR growth in the Asia Pacific and Middle East and Africa regions. -For North America, the company expects comparable system wide RevPAR will increase 5 to 7 per cent on a constant dollar basis.- Based on early fourth quarter transient RevPAR trends, North American RevPAR is likely to increase at the low end of the guided range. The company anticipates gross room additions of approximately 7 to 8 per cent, or 6 to 7 per cent, net, worldwide for the full year 2015, including the 9,600 rooms from the acquisition of the Delta brand.
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By BW Hotelier LITE BITE Foods has launched a delivery app at the airport, FooGo. The app is currently operational at the Indira Gandhi International Airport, New Delhi and Chhatrapati Shivaji International Airport, Mumbai. FooGo app is available free on Android and can be downloaded at the Google Playstore. The FooGo mobile app enables travelers to not only discover great places to eat but also offers them the option of having a hot, fresh meal delivered directly to them at their check-in gate within a convenient boarding time. The app allows food delivery to be tracked in real time. The FooGo app allows the air passengers, who are bored of the in-flight food, to have easy access to the food menus at the two airports, without even being physically present. Amit Burman, Chairman, Lite Bite Foods, (see photo) said, ’Food, travel and technology are so intertwined that there's a need for a simplified product to help people make new dining discoveries or easily find authentic ideas or suggestions. The FooGo app provides us a platform to interact with the consumer tastes and choices by simply allowing customers to skip the queue at the airport restaurants. We have also kept the app open for restaurant brands to get listed on it as it plays a significant role in generating business. Consumer mobile media is a key focus of Lite Bite Foods as we rapidly grow our platforms and audience. We plan to expand the delivery services at the airport whether it be food or other products for the ease of all the travelers at the airport. It would give us extreme pleasure to create a happy consumer base!’ While talking about next steps, Burman said, "The present day consumer is informed and conscious about their food habits. They care about what they eat and thus we plan to introduce food centric categories for the consumers where they would be able to choose from a range of categories like vegan, gluten free, low carb, high protein, Jain food, and a lot more." Rohit Aggarwal, Director, Lite Bite Foods, said, ’With the advent of social media and the busy lifestyles, the present day travelers are crunched on time and moreover, everyone enjoys a relaxing and sumptuous sit-down meal. We have made FooGo user friendly and the most convenient and reliable airport food assistant."
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By BW Hotelier MAHINDRA HOLIDAYS & Resorts India Limited (MHRIL) has announced its financial results for the quarter ended September 30, 2015. For the second quarter ended September 30, 2015, total income stood at Rs 236.3 crores as against Rs 200.1 crores in Q2 FY15, up 18 per cent year-on-year. Profit after Tax (PAT) for Q2 FY16 stood at Rs 28.9 crores vs Rs 24.7 crores in the year-ago period, an increase of 17 per cent. For the first half of the fiscal (H1FY16), total income stood at Rs 467.2 crores as against Rs 390.7 crores in H1 FY15, a 20 per cent increase year-on-year. Profit after Tax (PAT) stood at Rs 53.9 crores vs Rs 45.1 crores in H1 FY15, up 20 per cent. Commenting on the results, Arun Nanda, Chairman, Mahindra Holidays, (see photo) said, ’A 50 per cent growth in member addition during the quarter despite the current economic environment, is a reflection of the level of customer satisfaction your company has been able to achieve and I believe it augurs well for the future.’ Kavinder Singh, MD and CEO, Mahindra Holidays, said, ’Our successful execution of the strategy to make ’Club Mahindra’ an aspirational brand that provides unique family leisure holidays along with 'lifestyle' experiences, is helping create ’consumer pull’ for our offering. This is reflected in healthy operating metrics such as member additions, referrals and successful alliances. We intend to build on this momentum in the near future.’
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By BW Hotelier ACCORDING TO STR’s Global Hotel Industry Performance Report for September 2015, Delhi-National Capital Region, India, saw a 2.1 per cent increase in occupancy to 62.9 per cent but decreases in ADR (-5.0 per cent to Rs 5,602.49) and RevPAR (-3.0 per cent to Rs 3,525.79) for the month of September compared to the same time last year. Hotels in the Asia Pacific region experienced positive results in two of the three key performance metrics when reported in U.S. dollar constant currency. Compared to September 2014, the Asia Pacific region reported a 0.5 per cent decrease in occupancy to 68.1 per cent. However, average daily rate was up 2.0 per cent to USD 108.23, and revenue per available room increased 1.6 per cent to USD 73.71. China reported slight decreases in each of the three key performance metrics: Occupancy (-0.6 per cent to 64.9 per cent), ADR (-1.2 per cent to CNY 548.27) and RevPAR (-1.8 per cent to CNY 355.97). Supply growth (+3.6 per cent) outpaced demand (+3.0 per cent) for September, and the slowdown in the country’s economy has come under global scrutiny. According to the National Bureau of Statistics of China, the country’s annual inflation rate was recorded at 1.6 per cent in September, down from 2.0 per cent in August. In addition, China’s economy grew by 6.9 per cent during the third quarter, down from 7.0 per cent in each of the first two quarters of the year. New Zealand posted a 1.9 per cent increase in occupancy to 74.7 per cent, a 5.8 per cent rise in ADR to NZD 149.14 and a 7.8 per cent increase in RevPAR to NZD 111.33. Demand in the country was up 2.6 per cent for the month, while supply remained nearly flat at +0.6 per cent. Taiwan recorded a 2.3 per cent decrease in occupancy to 63.0 per cent, a 1.7 per cent drop in ADR to TWD 5,671.17 and a 4.0 per cent decrease in RevPAR to TWD 3,573.69. Demand in the country slipped 1.3 per cent for the month. Also in late September, the Central Bank of Taiwan cut its interest rate to 1.75 per cent, the first such cut in the country since 2009. Ho Chi Minh City, Vietnam, reported increases in each of the three key performance metrics: Occupancy (+2.5 per cent to 61.9 per cent), ADR (+7.3 per cent to VND 2,530,286.81) and RevPAR (+10.0 per cent to VND 1,565,411.12). The positive performance came as demand growth (+9.8 per cent) outpaced supply (+7.2 per cent). Phuket, Thailand, experienced a 6.8 per cent increase in occupancy to 59.1 per cent, a 1.5 per cent rise in ADR to THB 2,740.18 and an 8.4 per cent increase in RevPAR to THB 1,619.93. Demand growth (+8.9 per cent) in the market was significant, and ADR increased for the first time in 15 months. GlobalHotelReview_Media_September_2015
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By BW Hotelier WONDERLA HOLIDAYS Ltd announced its results for the second quarter ended September 30, 2015 of FY 15-16. Gross Revenue for the Second Quarter, ending September 30, 2015-16 fiscal, were Rs 4881.24 lakhs; an increase of 31.40 per cent over corresponding period last financial year (Rs 3713.82 lakhs). Similarly, the Gross Revenue for the First half year ending September 30, 2015-16 fiscal were Rs 12346.63 lakhs, an increase of 19.50 per cent over corresponding period of last financial year (Rs 10329.39 lakhs). Profit After Tax for the second quarter, ending September 30, 2015-16 fiscal, was Rs 1194.87 lakhs; an increase of 85.40 per cent over corresponding period last financial year (Rs 644.37 lakhs). Similarly, the Profit After Tax for the first half year ending September 30, 2015-16 fiscal were Rs 3999.03 lakhs, an increase of 27.85 per cent over corresponding period of last financial year (Rs 3127.84 lakhs). Revenue from the two amusement parks ’ Bangalore and Kochi was Rs 4142.90 lakhs for the quarter. Similarly the revenue from the amusement parks for the half year ended September 30, 2015 was Rs 10588.23 lakhs. The resort division continues its good performance with an occupancy rate of 33 per cent for Q2 of this financial year. Arun K Chittilappilly, Managing Director, Wonderla Holidays Ltd. (see photo) said, ’We are happy with our performance during the second quarter of the ongoing financial year. We had good footfalls at the park and resort during the festive seasons and we are optimistic about growth coming in from both the amusement parks.’
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By Rashmi Pradhan THE SUDDEN spurt in economic activity resulting in an increase in the domestic travel and transit business at Mumbai International Airport has resulted in an eight per cent RevPAR growth in the north Mumbai market, according to Raghu Sapra, General Manager, Hilton Mumbai International Airport. The north Mumbai market is doing well and with the mushrooming airline business there was an expectation of further increase in business volumes, he told this reporter recently. When asked what impact the new JW Marriott Hotel Mumbai Sahar on business, Sapra said, ’Whenever there is new supply in the market, there will be some sort direct and indirect effect on everyone else. The positive side is that we still saw eight per cent RevPAR growth. We currently believe that demand is good as of now and the market should be able to absorb the new inventory.’ Speaking on new trends, Sapra said, ’We took over this property in 2011 (from Le Meridien) and saw that the market dynamics remained the same. However, the customer is changing. The market is changing to a short booking window and travelers are opting for online booking. F&B is changing a lot with new concepts like molecular cooking, healthy eating options and innovative food not to mention competition from standalone F&B outlets. I believe, going forward, like in Europe, hotels will start offering less F&B options.’ The author is Assistant Editor at BW Hotelier.
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By BW Hotelier WESTIN HOTELS & Resorts has announced its partnership with Wellness expert and former Miss Universe Lara Dutta as the newest Asia Pacific Westin Well-Being Brand Advocate. The partnership continues the momentum of The Westin Well-Being Movement, a USD 15 million brand-wide campaign launched last year designed to enhance the well-being of guests and associates around the world. In her role as a well-being brand advocate, Lara will share her holistic lifestyle tips of restoring calm and balance at home or on the road with guests and associates; and how despite her hectic schedules, she is able to maintain a balance of work and life.-She will also create content and share her wellness and fitness choices on social media channels in order to reach a wider audience of guests and associates around the world. Her proactive approach to wellbeing suitably aligns with Westin brand’s six pillars of wellness: Sleep Well, Eat Well, Move Well, Feel Well, Work Well and Play Well. ’I am delighted to be a part of the Westin Well ’Being Movement. I have always believed in a holistic approach to wellness; what one eats, what exercise regimen one follows and how one counters stress. The key to wellness is balance and positive thinking. I have benefited from this in my profession and personal life. Through this association, I look forward to sharing my own knowledge and experience with others,’ said Lara Dutta. ’We are thrilled to have Lara Dutta on board as Asia Pacific’s newest Well-Being Brand Advocate for Westin,’ said Vincent Ong, Senior Brand Director, Brand Management, Starwood Hotels & Resorts Asia Pacific. ’What makes Lara’s association with the Well-Being movement relevant is her holistic approach to life as well as her enthusiasm for healthy living throughout her career from Miss Universe to a working mother. We see this partnership with Lara as yet another innovative way the Westin Well-Being Movement transcends to our guests and associates; inspiring them to lead a healthier life.’ he added. In March last year, the brand launched The Westin Well-Being Movement ’ a global initiative designed to enhance the Well-Being of guests and associates with the introduction of a string of innovative partnerships and programs across the brand’s six pillars of Well-Being. Photo (L’R): Arif Patel, Regional Director of Sales & Marketing, South Asia at Starwood Hotels & Resorts Worldwide, Inc; Abha Bakaya, Host at Bloomberg TV India; Nelli Yong ’ Vice President, Brand Management, Asia Pacific, Starwood Hotels & Resorts Worldwide, Inc, Lara Dutta and Ashish Kumar Rai, General Manager, The Westin Mumbai Garden City
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By Bikramjit Ray THE LALIT Suri Hospitality Group announced a tie-up with Worldhotels for their four main business hotels, in New Delhi, Mumbai, Bangalore and Kolkata. The rest of the hotels in the Lalit chain would be part of the loyalty program offered by Worldhotels. When asked why they decided to form the partnership, Keshav Suri, Executive Director, The Lalit Suri Hospitality Group said, ’The Lalit Suri Hospitality Group personifies Indian tradition, cuisine, art and culture in all its luxury hotels, palaces and resorts. After strengthening our presence in the domestic market, we decided to intensify our focus on the international market.’ What attracted the Lalit Group to Worldhotels, according to Rakesh Mitra, General Manager ’ Sales and Marketing for the Lalit Group, was World Hotels 35 sales offices across the globe to start with. ’The focus is definitely on the business traveler. Peak Points, Worldhotels’ loyalty program has unique features like insurance for all travellers, I also includes 26 airlines and allows members to spend points in slabs without the need to accumulate them first,’ he added. The other things which attracted the Lalit Group to Worldhotels-was their TRUST program, which is the central reservation system followed by many hotels worldwide as well as a very strong RFP tool, owned through a subsidiary company called Nexus, he said. Roland Jegge, Executive Vice President, Asia Pacific, Worldhotels felt that the Lalit Group is the perfect match for world hotel because of its size and location. ’The hotels are central and have large MICE and Convention Centres, so it’s a perfect match for us, as demand for India increases,’ he told me. World Hotels needed to have more presence and larger hotels in this key destination, according to Jegge. The author is Executive Editor of BW Hotelier.-
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