Hotel & Motel Management - September 1, 2008 - (Page 21) www.HotelMotel.com/digital_edition HotelMotel.com | H&MM September 1, 2008 News 21 Continued from previous page other factors. For example, Starwood pinned a majority of profit lost on lower vacation-ownership results and the sale of hotels by a joint-venture in which Starwood held a minority interest. Wyndham Worldwide was one of a handful of companies to see positive growth in Q2 2008, with a 2-percent net income increase and a 3-percent revenue increase over Q2 2007, partially due to its ownership of segments outside of hotels like Group RCI and Wyndham Vacation Ownership. But with RevPAR only at a slight increase of 1.4 percent, Wyndham hopes to right the problem at the franchisee level. “Lower U.S. RevPARs are impacting many of our franchisees, and that impact flows through to our hotel revenue streams,” said Virginia Wilson, EVP and CFO of Wyndham Worldwide. “We are working with many of them to focus on optimizing their hotels’ performance, based on the unique market conditions each property is seeing.” RevPAR is one of the top lines reviewed on quarterly reports, executives agreed, so a poor showing causes concern. In the second quarWilson WYNDHAM ter of some of the major public companies, Starwood reported its North American RevPAR increased 3 percent; IHG’s North American properties saw an increase of 1.5 percent; Marriott saw its U.S. RevPAR rise 1.4 percent; and Choice saw an increase of 0.7 percent in the U.S. “In the beginning of 2008, most hotel companies were anticipating RevPAR gains of 5 percent to 7 percent,” Arabia said. “Now I would say the most common expectation is roughly flat, which has a very big impact on profitability.” Profit losses force management to get creative and make cuts without affecting the customer experience, especially as the industry prepares for rougher months ahead. “As RevPAR growth declines, the question is, what is the operating expense we can take down to maintain profitability?” LaFleur said. “Most seasoned management teams have seen these cycles before and they’re reacting to it the best way they can, and that is [by focusing] on expense reduction—at least to the point where you can reduce expenses before reducing guest satisfaction,” Arabia said. “They also are focusing on liquidity and their own capital structure … and some are making some discretional cuts to capital spending.” ehanna@questex.com Projection shifts Company Q2 2008 EBITDA Choice Hotels International $52.8 million Gaylord Entertainment Co. $57.9 million InterContinental Hotels Group $195 million MGM Mirage $564 million Orient-Express Hotels $52 million Starwood Hotels & Resorts Worldwide $299 million Wyndham Worldwide $62 million NA means not available Q2 2007 EBITDA $49.5 million $38.7 million $181 million $686.3 million $49.9 million $362 million $59 million Revised full-year projections $196.5 million NA NA NA $160-170 million $1.18-1.22 billion $900-920 million* Source: Q2 Reports *includes Group RCI and Wyndham Vacation Ownership E-mail: info@worldexchange.us.com Web: www.worldexchange.us.com Toll Free: (888)349-3484 Toll Free: (888) 349-3484 CIRCLE NO. 121 http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.worldexchange.us.com http://www.worldexchange.us.com
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - September 1, 2008 Hotel & Motel Management - September 1, 2008 Contents Element LEEDs Brand-wide Promise NABHOOD Speakers: Hold Rates Perspective Letters to the Editor Legally Speaking Satisfaction Trends AAHOA Update Energy Star Update Marketing Matters Events HotelWorld Update Trends & Stats Coffee Services Business Equipment Ad/Editorial Index Marketplace Classifieds Checking Out Hotel & Motel Management - September 1, 2008 Hotel & Motel Management - September 1, 2008 - Hotel & Motel Management - September 1, 2008 (Page 1) Hotel & Motel Management - September 1, 2008 - Hotel & Motel Management - September 1, 2008 (Page 2) Hotel & Motel Management - September 1, 2008 - Contents (Page 3) Hotel & Motel Management - September 1, 2008 - NABHOOD Speakers: Hold Rates (Page 4) Hotel & Motel Management - September 1, 2008 - NABHOOD Speakers: Hold Rates (Page 5) Hotel & Motel Management - September 1, 2008 - Letters to the Editor (Page 6) Hotel & Motel Management - September 1, 2008 - Letters to the Editor (Page 7) Hotel & Motel Management - September 1, 2008 - Satisfaction Trends (Page 8) Hotel & Motel Management - September 1, 2008 - Satisfaction Trends (Page 9) Hotel & Motel Management - September 1, 2008 - AAHOA Update (Page 10) Hotel & Motel Management - September 1, 2008 - AAHOA Update (Page 11) Hotel & Motel Management - September 1, 2008 - Energy Star Update (Page 12) Hotel & Motel Management - September 1, 2008 - Energy Star Update (Page 13) Hotel & Motel Management - September 1, 2008 - Marketing Matters (Page 14) Hotel & Motel Management - September 1, 2008 - Marketing Matters (Page 15) Hotel & Motel Management - September 1, 2008 - Events (Page 16) Hotel & Motel Management - September 1, 2008 - HotelWorld Update (Page 17) Hotel & Motel Management - September 1, 2008 - Trends & Stats (Page 18) Hotel & Motel Management - September 1, 2008 - Trends & Stats (Page 19) Hotel & Motel Management - September 1, 2008 - Trends & Stats (Page 20) Hotel & Motel Management - September 1, 2008 - Trends & Stats (Page 21) Hotel & Motel Management - September 1, 2008 - Coffee Services (Page 22) Hotel & Motel Management - September 1, 2008 - Coffee Services (Page 23) Hotel & Motel Management - September 1, 2008 - Coffee Services (Page 24) Hotel & Motel Management - September 1, 2008 - Coffee Services (Page 25) Hotel & Motel Management - September 1, 2008 - Business Equipment (Page 26) Hotel & Motel Management - September 1, 2008 - Business Equipment (Page 27) Hotel & Motel Management - September 1, 2008 - Business Equipment (Page 28) Hotel & Motel Management - September 1, 2008 - Business Equipment (Page 29) Hotel & Motel Management - September 1, 2008 - Ad/Editorial Index (Page 30) Hotel & Motel Management - September 1, 2008 - Ad/Editorial Index (Page 31) Hotel & Motel Management - September 1, 2008 - Marketplace (Page 32) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 33) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 34) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 35) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 36) Hotel & Motel Management - September 1, 2008 - Classifieds (Page 37) Hotel & Motel Management - September 1, 2008 - Checking Out (Page 38) Hotel & Motel Management - September 1, 2008 - Checking Out (Page 39) Hotel & Motel Management - September 1, 2008 - Checking Out (Page 40)
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