Accor and Choice Hotels Report Earnings

The DJIA fell 451 points, Nasdaq was down 94, the S&P 500 fell 27 points and the 10-year treasury yield was down .03 to 4.50%. Lodging stocks were lower, although the movers were to the upside, with SOND up 8% and SVC up 5%. WH traded up to another new all-time high.

Host Hotels reported a strong 4Q beat, gave lower-than-expected 2025 guidance due to margins, and did not buy back any shares in 4Q. The stock was down a bit. Park Hotels reported a solid 4Q, at least from an adjusted EBITDA standpoint. They bought back 1.8 million shares for $26 million and announced a big $100 million renovation at the Royal Palm. 2025 guidance was cautious due to Hawaii, expenses, and the renovation. The stock went down a bit. Choice Hotels had a 4Q earnings beat, but the reason was that the “other revenues” provided the upside. The NUG was surprised, but their pipeline took a bit of a hit. CHH bought back 200,000 shares for $29.2 million, and 2025 guidance was ahead of expectations. The stock went up a decent amount.

Accor reported a strong 4Q, but the other things they announced about the earnings seemed to be more important. They will buy back 440 million euros worth of stock this year. They did not give guidance for 2025. They said it may be time for them to sell their 30% stake in AccorInvest, something they are looking to complete before the end of 2026. They noted investor interest already in the stake. Fortress Investment Group is also interested in acquiring Accor’s super-budget brand F1, which has 127 hotels/9,929 rooms in France. Accor also said they will appoint Isabelle Simon as Board Vice-Chair, replacing Iris Knobloch. They also proposed the renewal of Sebastien Bazin’s mandate for a term of 3 years as CEO at the AGM.

STR reported US hotel data for the week ended 2/15. RevPAR rose 3.4% year over year, with ADR up 2.2%. Group RevPAR was up 16.1%. The Valentine’s Day timing being on a Friday may have boosted overall results.

DiamondRock Hospitality Company completed the sale of the 410-room Westin Washington, D.C. City Center for a contract price of $92.0 million.