Hilton Had a Blow-Out Quarter

The DJIA fell 0.73% while Nasdaq was down 1%, the S&P 500 fell 0.88% and the 10-year treasury yield was roughly flat at 3.671%. VCSA ended the day down -7%.

Hilton checked nearly all the boxes with their earnings report, kicking off lodging earnings season with a bang. EBITDA, RevPAR, EPS all were well above the Street. About the only miss was on net unit growth for the year due to delayed openings in China. In 4Q, they spent $501 million buying back stock and expect to spend $1.7 billion to $2.1 billion in 2023.

InterContinental Hotels Group PLC is seeking to fend off claims from franchisees five months after a cyber attack that hotel owners say cost them money and disrupted business. Lawyers for IHG have asked a judge to dismiss the lawsuit filed by owners of franchised hotels, arguing their contracts prevent them from seeking damages. According to IHG’s lawyers, the cyber attack didn’t result in personal data being exposed and claims based on alleged failure to protect information shouldn’t apply. Hotel owners sued IHG in September in U.S. District Court in Atlanta, accusing the company of failing to “adequately invest in data security, despite the growing number of well-publicized data breaches affecting the hospitality and similar industries.” The owners say they haven’t received sufficient information from IHG about the cyber attack, such as how it happened and whether they will be reimbursed for lost business. The lawsuit highlights the potential ripple effects of a hack, including technology outages and lost business for franchisees and other business partners. 

The Washington Marriott at Metro Center has kicked off the next phase of a multi-million dollar renovation, after pausing on the work earlier in the pandemic. The planned improvements will give the downtown D.C. property a fresh look inside and out. The work, slated for completion by the end of the year includes the hotel’s new front entrance and lobby. The