Dive Brief:

• Global RevPAR grew by 12% as compared to the same period in 2022, with the U.S. growing 4% and international 37%, according to Wyndham Hotels & Resorts’ first-quarter results.
• Hilton reported that system-wide RevPAR grew 30% year over year and 8% compared to 2019.
• Despite some economic uncertainty, both earnings reports cited strong leisure travel demand and spending among consumers.

Dive Insight:

Two major hotel groups — Wyndham Hotels & Resorts and Hilton — reported strong first-quarter earnings, attributing continued leisure travel demand and international recovery, particularly in Asia, for the results.

“With U.S. unemployment at its lowest level since the 1960s and consumer savings of $1.6 trillion, our guests — who are primarily middle class with household incomes of over $90,000, nearly 30% above the U.S. median — are allocating a higher share of their wallets to travel this year,” said Geoff Ballotti, CEO of Wyndham, during the company’s earning call. “This surge in travel spending has been unabated by the economic headlines throughout the year and reflects their strong desire to reconnect with family and friends, explore new destinations and create lasting memories.”

With summer travel season on the horizon, Ballotti added that 93% of Wyndham guests are planning a trip in the next six months — an all-time high, according to company surveys. “We do believe that leisure travel will defy any economic gravity that might be out there,” he said.

Wyndham ended the first quarter with above-average results, producing $67 million of net income on $313 million in revenue.

Hilton attributed system-wide RevPAR growth in Q1 to “strong demand in APAC as well as continued strength in leisure and steady recovery in business transient and group travel,” said Kevin Jacobs, CFO and president of global development for Hilton, on the company’s earnings call.

During the first quarter, Wyndham opened more than 10,000 rooms globally, and maintained a retention rate of 95.3% over the last 12 months. Its global development pipeline consists of approximately 1,800 hotels and 226,000 rooms, representing an 11% year-over-year increase, including 28% growth in the U.S.

In comparison, Hilton opened 64 properties, totaling more than 9,200 rooms, in the first quarter, including the opening of the company’s 500th hotel in China. Hilton grew its pipeline to a record 428,100 rooms, more than half of which are currently under construction.

According to Wyndham CFO Michele Allen, the recent bank collapses in the U.S. aren’t expected to slow the company’s development plans, saying during the earnings call that the “majority of what’s in our pipeline already has financing in place. So we feel really strong about the 2023 financing situation.”