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Second Quarter 2021: What Happens When Pent-Up Leisure Demand Runs Out?

Hotel Leaders Also Share Group Business Outlook, Labor Concerns

Beachgoers enjoy themselves under umbrellas and in the water near the Daytona Beach, Florida, fishing pier in March. (Getty Images)
Beachgoers enjoy themselves under umbrellas and in the water near the Daytona Beach, Florida, fishing pier in March. (Getty Images)

Click through the links below for Hotel News Now's complete coverage of the second quarter 2021 earnings season for the hotel industry.

Favorite this page as it will continue to be updated as companies report earnings.

Two of the lingering questions in the U.S. hotel industry's recovery from the pandemic is the timing and pace of corporate travel's return. (Getty Images)

The U.S. hotel industry faces a number of questions as it recovers from the pandemic, but while issues such as labor and corporate demand challenge hoteliers, experts believe the overall recovery is still on track.

Accor is working in an environment of reduced demand and rates, but executives say the company is well-poised to rebound quickly due to the implementation of savings, management restructuring, acquisition sales and the steady reopening of borders and markets.

Wyndham Hotels & Resorts opened the La Quinta Inn & Suites by Wyndham Nashville Downtown/Stadium on July 15, and has 175 La Quinta-branded hotels in its development pipeline. (Wyndham Hotels & Resorts)

Wyndham Hotels & Resorts projects 1% to 2% growth in its global portfolio room count in 2021.

Faster-than-anticipated performance recovery is what's driving optimism for Hilton President and CEO Chris Nassetta.

After years of reinvesting in its portfolio, real estate investment trust Pebblebrook Hotel Trust has been able to take advantage of leisure and business demand to drive rates at its renovated hotels and resorts during the recovery.

Marriott International added 149 properties comprising 24,909 rooms to its worldwide portfolio during the second quarter of 2021. Pictured above is the Matild Palace, a Luxury Collection Hotel, Budapest, which opened late in the quarter. (Marriott International)

Marriott International executives are optimistic about the return of corporate and group demand, along with improvements in key performance metrics during the second quarter of 2021.

Hotel real estate investment trust Host Hotels & Resorts so far in 2021 has acquired four hotels and land for a total of $1.1 billion and is looking for more deals going forward.

Stronger-than-usual conversions activity and a reduction in terminations have boosted rooms growth for Hyatt Hotels Corp., but President and CEO Mark Hoplamazian said the openings of many hotels could be delayed into 2022 due to persistent supply chain issues.

MGM Resorts International reports pent-up leisure demand and signs of business travel returning are setting up a stronger recovery of its domestic and international resort casinos.

Choice Hotels International opened the Cambria Hotel Orlando Airport in the second quarter. (Choice Hotels International)

Choice Hotels International has seen solid performance across its portfolio throughout the pandemic and plans to drive performance past 2019 levels through its continued focus on its upscale, extended-stay and midscale brands.

CorePoint Lodging has had success in selling its non-core portfolio since starting its disposition program in 2019 and its board is now considering new strategic efforts, which could include a potential sale or additional transactions.

In the second quarter, RLJ Lodging Trust bought a newly built asset in Atlanta for $58 million and sold two hotels for $13.3 million.

DiamondRock Hospitality Company announced on Aug. 4 it had purchased the 37-room Henderson Park Inn, a beachfront resort located in Destin, Florida. (CoStar Group)

During DiamondRock Hospitality Company's second quarter earnings conference call, President and CEO Mark Brugger discussed the real estate investment trust's latest acquisitions of the Bourbon Orleans Hotel in New Orleans' French Quarter and the Henderson Park Inn in Destin, Florida.

Apple Hospitality REIT completed the strategic sale of 20 hotels in July as part of its acquisitions and dispositions strategy, which is aimed at reducing the age of its portfolio and increasing exposure in growth markets.

Service Properties Trust's properties continue to take advantage of leisure and extended-stay demand as disruption eases from converting hundreds of hotels to Sonesta brands.

Park Hotels & Resorts plans to grow through converting properties similar to the Signia by Hilton Orlando Bonnet Creek. (Hilton)

Park Hotels & Resorts CEO Thomas Baltimore Jr. said he sees more opportunity for growth by brand conversions within its existing portfolio or other improvements than in spending the real estate investment trust's capital on acquiring new properties.

IHG Hotels & Resorts reported in July that 50% of its hotels achieved revenue per available room above 2019 levels and its Holiday Inn Express brand reached 3,000 open hotels.

Tracking Earnings Results

Hotel News Now's Earnings Tracker offers an overview of results in key performance metrics for select hotel companies and real estate investment trusts. The chart for this latest earnings season will be updated as companies report, and can be downloaded here.