Excerpt from CoStar

Publicly listed hotel real estate investment trusts and brands broadly increased full-year revenue per available room expectations during first-quarter earnings calls.

A strong first quarter to start the year left hotel companies broadly optimistic as executives made widespread increases to full-year 2023 revenue per available room projections.

Here are some of the highlights from quarterly earnings calls highlighting the source of that optimism for the remainder of the year.

Wyndham Hotels & Resorts Chief Financial Officer Michele Allen

"We're updating our full-year 2023 outlook to reflect first quarter favorability as well as a lower share count due to our first quarter repurchase activity. Fee-related and other revenue increases by $4 million from February's outlook and still rounds to $1.38 billion to $1.41 billion. Adjusted [earnings before interest, taxes, depreciation and amortization] increased $4 million as well and is now projected to be $654 million to $664 million. We expect adjusted net income of $340 million to $352 million, $3 million higher than our prior outlook. And adjusted diluted EPS increased $0.08 per share and is now projected to be $3.92 to $4.06 based on a diluted share count of 86.8 million, which, as usual, excludes any future potential share repurchases.

"There are no changes to our prior outlook for global net room growth, global RevPAR growth or for our free cash flow conversion rate. Also, while our full-year expectations for the marketing funds contribution remains unchanged, I want to provide some color on the projected quarterly impacts. As we expect a more normalized cadence of marketing spend this year, fund expenses will again outpace fund revenues during the second quarter by $10 million to $15 million. As we move into the back half of the year, fund revenues will outpace fund expenses to arrive at our estimated full-year underspend of $10 million, which will complete our recovery of the $49 million investment that we made back in 2020."

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