Hertz Global Holdings reported a $223 million loss in the
first quarter of 2017, as the car
rental company faced declining revenue and a depreciating
fleet. U.S. car rental revenue declined 4 percent year over year to
$1.4 billion, and transaction days
decreased 1 percent, largely due
to the Leap Day in 2016. Pricing
went down 3 percent. Outside the
U.S., revenue declined 5 percent
to $411 million. Transaction days
outside the U.S. rose 1 percent,
but pricing declined 4 percent.
Hertz already has declared 2017 a
“transition year,” and the company
is taking a “necessary depreciation hit” as it upgrades an aging
fleet, CEO Kathryn Marinello
said. As such, the company knew
results would be poor in the first
half of the year.
Avis Budget Group’s first-quarter revenue declined 2 percent
year over year to $1.8 billion
on slow demand growth and
pricing declines. In the Americas,
rental days increased 1 percent,
but pricing declined 4 percent.
Commercial rental volume was
flat, president and CFO David
Wyshner said. Outside the Americas, pricing declined 6 percent
as volume increased 7 percent,
boosted by Avis Budget’s acquisition of rental company France
Cars late last year. Without that
acquisition, volume outside the
Americas was flat, though commercial demand showed signs of
growth in Germany and the U.K.
Marriott International reported better-than-expected demand
from group and business transient segments in North America and Europe during the first quarter. In North America, group
RevPAR increased 7. 7 percent year over year. Group RevPAR at se-lect-service hotels increased 10 percent. In Europe, RevPAR grew
7 percent, fueled by strong transient and group demand, as well as
inbound travel from international markets. “European room nights sold
to U.S. travelers alone increased at a mid-teens rate in the first quarter,”
said CEO Arne Sorenson. Corporate business also provided a boost to
the Asia/Pacific region, which saw RevPAR increase 5 percent. All the
statistics Marriott used to calculate year-over-year changes from 2016
to 2017 assume that Marriott’s acquisition of Starwood Hotels & Resorts
and Starwood’s sale of its timeshare business closed on Jan. 1, 2015.
LHilton experienced year-over-year increases in occupancy and av-
erage daily rate during the first quarter. Occupancy rose 1.6 percent-
age points to 70.9 percent, while ADR grew 0.6 percent to $141.55.
Hyatt Hotels Corp.’s first-quarter group revenue at U.S. full-service
hotels increased 10 percent year over year, which contributed to a
decline of about 1 percent in transient revenue from displacement. Hyatt
saw strong group demand from consulting, retail, banking and finance sectors but softer demand from technology and pharmaceutical companies.
However, group booking pace for the second and third quarters is tepid,
according to CFO Patrick Grismer.
Choice Hotels International reported year-over-year gains in
both occupancy and ADR during the first quarter. Occupancy
increased 100 basis points to 56.1 percent, while ADR rose 1.9 percent
IHG systemwide average daily rate increased 0.8 percent year
over year to $109.79 during the first quarter. Occupancy rose
1.2 percentage points to 64.9 percent. In the Americas, revenue per
available room increased 2. 2 percent. U.S. RevPAR rose 1.9 percent.
While oil producing markets still weigh on IHG’s results, RevPAR for
these markets rose 1 percent, excluding the revenue gained from the
Super Bowl in Houston. However, supply growth is expected to continue
in these areas, which could continue to impact RevPAR.
During the first quarter, AccorHotels experienced its best quar-
terly RevPAR growth of the past two years, CEO Sebastien Bazin
reported. Systemwide RevPAR increased 5 percent year over year on a
like-for-like basis. ADR increased 1.2 percent to €90, while occupancy grew
2. 3 percentage points to 63 percent.