Shares fell 6.6% as investors reacted negatively to margin pressure despite solid top-line growth and accelerating demand, suggesting concerns around expense control amid rising occupancy.
- RevPAR grew 6.8% driven by 4.9% ADR growth and a 130bps increase in occupancy, with June up 12% and strong early July momentum at nearly 11%.
- Business transient revenues increased 10%, supported by strong corporate demand across several industries; leisure revenues rose 7% with a 6% lift in rate.
- Group revenues grew 6%, paced by both demand and ADR, and third-quarter group bookings are pacing at 110% of last year.
- Auto room spend rose 7%, reflecting success in ROI initiatives and capital improvements.
- Despite robust top-line, expense growth exceeded expectations driven by higher occupancy, leading to margin compression and more modest EBITDA growth of 7%.
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