Written by Based on the data from the annual reports of Marriott, Hilton, Accor, and IHG for 2023, we can analyze the key takeaways and rankings among these major hotel companies.
1. Revenue Performance:
- Marriott reported a strong full-year revenue growth of 15%, with a significant increase in RevPAR (Revenue per Available Room) by 15% globally.
- Hilton reported diluted EPS of $4.33 for the full year, reflecting solid financial performance.
- Accor reported consolidated revenue of €5,056 million, marking an 18% increase like-for-like (LFL) compared to 2022.
- IHG showcased a remarkable revenue growth with a total revenue of $4,624 million, up by 19% compared to the previous year.
2. Operating Profit and EBITDA:
- Marriott reported adjusted EBITDA of $1,197 million in the fourth quarter of 2023, a 10% increase compared to the same period in 2022.
- Hilton reported a net income of $150 million for the fourth quarter.
- Accor achieved a record-high consolidated EBITDA of €1,003 million for 2023, marking a significant milestone in its financial performance.
- IHG reported an impressive operating profit of $1,066 million, representing a substantial increase compared to the previous year.
3. Growth and Expansion:
- Marriott added nearly 81,300 rooms globally during 2023, with a net rooms growth of 4.7% from year-end 2022.
- Hilton reported continued growth and expansion with a total of 1,597,000 rooms globally by the end of the year.
- Accor opened 291 hotels, adding approximately 41,000 rooms to its portfolio in 2023.
- IHG opened 275 hotels and signed 556 hotels into its pipeline during the same period, showcasing robust development activity.
4. Shareholder Returns and Financial Discipline:
- Marriott repurchased 21.5 million shares of common stock for $3.9 billion in 2023 and returned over $4.5 billion to shareholders through dividends and share repurchases.
- Hilton achieved a diluted EPS, adjusted for special items, of $6.21 for the full year, demonstrating its commitment to delivering value to shareholders.
- Accor returned a total of €676 million to its shareholders during the year, reflecting its strong financial performance and confidence in continued business growth.
- IHG completed a $750 million share buyback program in 2023 and launched a new $800 million buyback program, aiming to return over $1 billion to shareholders in 2024.
5. Outlook and Future Prospects:
- Marriott expects a worldwide full-year RevPAR increase of 3% to 5% and net rooms growth of 5.5% to 6% in 2024.
- Hilton anticipates another year of solid growth and significant shareholder returns in 2024, with an expected diluted EPS of $6.20 to $6.50 for the full year.
- Accor confirmed its medium-term growth prospects, including annualized RevPAR growth of between 3% and 4% and EBITDA growth of between 9% and 12% for the period of 2023-2027.
- IHG predicts high single-digit percentage growth in fee revenue, sustained growth in adjusted EPS, and ongoing share buybacks as part of its future value creation strategy.
Rankings:
- Based on revenue performance and growth indicators, the rankings among these hotel companies for 2023 are as follows:
- Marriott International
- Accor
- Hilton Worldwide Holdings Inc.
- IHG Hotels & Resorts
Hospitality Giants Deliver Strong Performance in 2023
The year 2023 witnessed remarkable growth and resilience in the global hospitality industry, with major players such as Marriott International, Hilton Worldwide Holdings Inc., Accor, and IHG Hotels & Resorts reporting robust financial results despite ongoing challenges in the operating environment.
Marriott International Leads with Stellar Results
Marriott International, Inc., reported stellar fourth-quarter and full-year results, underscoring its position as a market leader. The company experienced a 7.2 percent increase in worldwide RevPAR in the fourth quarter of 2023, signaling a strong recovery in demand. Marriott’s reported diluted EPS for the fourth quarter reached $2.87, with adjusted diluted EPS at $3.57, reflecting solid financial performance.
Furthermore, Marriott’s global expansion remained robust, with the addition of nearly 81,300 rooms in 2023. The company’s worldwide development pipeline also reached new heights, totaling nearly 3,400 properties and roughly 573,000 rooms by the end of the year. Marriott’s commitment to shareholder returns was evident, with over $4.5 billion returned to shareholders through dividends and share repurchases in 2023.
Hilton Worldwide Holdings Inc. Shows Resilience
Hilton Worldwide Holdings Inc. demonstrated resilience in the face of evolving market dynamics, reporting solid financial results for the fourth quarter and full year of 2023. The company reported diluted EPS of $0.57 for the fourth quarter and $4.33 for the full year. Adjusted for special items, diluted EPS stood at $1.68 for the fourth quarter and $6.21 for the full year.
Despite ongoing challenges, Hilton remained focused on delivering exceptional guest experiences and driving growth. The company’s robust loyalty program and global portfolio continued to attract customers, with a strong performance in both leisure and business segments. Hilton’s commitment to innovation and sustainable practices further solidified its position as a leading hospitality provider.
Accor Achieves Record-High Results
Accor achieved record-high results in 2023, with EBITDA breaking the €1 billion mark for the first time in its history. The company reported consolidated revenue of €5,056 million, representing an 18% increase compared to the previous year. Accor’s performance was driven by strong growth across all segments and geographies, highlighting the efficiency of its asset-light model and the desirability of its brands.
With a hotel portfolio of over 821,000 rooms and a pipeline of 225,000 rooms, Accor remained committed to expansion and innovation. The company’s focus on responsible hospitality and value creation underscored its long-term growth prospects and commitment to delivering value to shareholders and partners.
IHG Hotels & Resorts Exceeds Expectations
IHG Hotels & Resorts delivered excellent results in 2023, exceeding expectations and setting new benchmarks in the industry. The company reported strong trading and financial performances, with global RevPAR up 16% compared to the previous year. IHG’s focus on strategic priorities and clear plans for future value creation positioned it as the hotel company of choice for guests and owners.
With a clear framework for growth and shareholder returns, IHG announced a further $800 million share buyback program, reflecting confidence in its growth prospects for 2024. The company’s commitment to sustainable growth and value creation underscored its leadership position in the global hospitality market.
Conclusion
Despite facing unprecedented challenges, major players in the hospitality industry demonstrated resilience, agility, and innovation in 2023. Marriott International, Hilton Worldwide Holdings Inc., Accor, and IHG Hotels & Resorts showcased strong financial performance, robust expansion plans, and a commitment to delivering exceptional guest experiences. As the industry continues to evolve, these companies remain well-positioned to capitalize on emerging opportunities and drive sustainable growth in the years to come.
This article highlights the key takeaways from each company’s annual report and provides insights into their performance and strategies for future growth. Let us know what is your take from those reports.