Brands Performance Update

Major public hotel companies recently released their year-end 2018 performance data. Of the 61 brands that report RevPAR statistics, most enjoyed an extended period of high occupancy levels and modest rate growth in 2018.
Rod Clough The following article illustrates the 2018 RevPAR levels across four categories, from the top RevPAR earners to the low end; we note that the statistics for this article, inclusive of occupancy and average daily rate (ADR), were pulled from the various 10-K filings of the brands on their corporate websites. 
 
 
2018 RevPAR, Top Ten
Source: 10K filings
 
Ritz-Carlton led the pack in RevPAR, with W Hotels, Waldorf Astoria, and Park Hyatt not too far behind. It should be noted that Four Seasons does not disclose brand averages. Occupancy levels from the above group ranged from a low of 71.4% (Waldorf Astoria) to a high of 82.2% (Hyatt Centric), with ADR levels spanning from Hyatt Centric’s roughly $229 to Ritz-Carlton’s $373 (rounded).
 
2018 RevPAR, $125 to $160
Source: 10K filings

The IHG brand EVEN showed notable strength in 2018, with this wellness-inspired brand ranking 15th and coming in with an average occupancy of 78% and an ADR of roughly $182. Hyatt House was the only extended-stay brand to break the top 20, with a RevPAR roughly 7% higher than the next closest extended-stay brand, Residence Inn by Marriott. 
Marriott, Hilton, and Hyatt Regency brand averages were all very close to one another, with RevPAR registering in the low $130s. Occupancy levels for the Marriott and Hyatt Regency brands registered near 73%, with ADR close to the $180 mark, while Hilton approached the 77% mark in occupancy and an ADR of $173 (rounded). 
2018 RevPAR, $93 to $120
Source: 10K filings

Mostly extended-stay and select-service brands rounded out the top 30. Hyatt Place, Hilton Garden Inn, Courtyard by Marriott, and Cambria all ended the year within a roughly $5 RevPAR range of $100 to $105 (rounded). Of these four brands, Hyatt Place led in occupancy at 77%, while Cambria led in average rate at just under $150. 
 
2018 RevPAR, $60 to $92
Source: 10K filings

Home2 Suites and Hampton by Hilton achieved nearly identical brand average RevPAR levels in 2018, while Hampton’s competing brands of Fairfield Inn by Marriott and Holiday Inn Express came in roughly $10 and $13 lower in RevPAR, respectively. Home2 Suites by Hilton also led this group in occupancy, reported at nearly 78% for 2018.

The remaining 2018 RevPAR levels for the 61 brands reported are reflected in the following table. 
 
Source: 10K filings

About Rod Clough

As President of HVS Americas, Rod oversees strategy execution for HVS throughout its 40 Americas locations. Rod’s tenure with HVS spans over 25 years, during which time he has played an important role in growing the company from a few locations across the Americas to 40. In a typical year, Rod’s group consults on over 2,500 existing or proposed hotels and resorts, and in 2021, he oversaw the 568-hotel Extended Stay America appraisal portfolio. In 2003, Rod founded the firm’s sister appraisal division, U.S. Hotel Appraisals, which completes roughly 1,000 hotel appraisals annually. Rod is a founding owner/partner of HVS Mexico-Latin America, and he re-launched the firm’s U.S. Brokerage and Capital Markets division in 2018. Rod is a Designated Member of the Appraisal Institute (MAI) and a licensed real estate broker. Furthermore, Rod is proudly Latino and gay, and his firm is welcoming of all races and colors, sexual orientations, ages, genders, and gender identities. Once associates join HVS, they tend to stay due to the extraordinary culture Rod has inspired, a culture defined by the ideals of balance, connectivity, efficiency, collaboration, honesty, integrity, kindness, and excellence, among others. Rod resides in northern Colorado where he and his husband Jeff are raising their daughter, Rory.

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