Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Hotels

Loews Hotels 2022 Profit Up 51 Percent From Pre-Pandemic Levels

1 year ago

In full-year 2022, the Loews Hotels chain of 25 luxury properties generated $345 million in adjusted earnings before interest, taxes, depreciation, and amortization — a measure of profit — on revenue of $721 million, its parent company reported on Monday.

The hotel unit’s adjusted earnings were roughly 51 percent higher than the pre-pandemic 2019 adjusted earnings before interest, taxes, depreciation, and amortization of $227 million.

CORRECTION: This post originally misstated Loews Hotels’ adjusted earnings before interest, taxes, depreciation, and amortization for 2022 and its relationship to the 2019 figure.

Using a different metric, Loews Hotels’ performance was even more impressive. In full-year 2022, the chain generated $161 million in net income compared to a loss of $28 million in 2019.

For the year, Loews Corp., a New York City-based conglomerate that runs insurance, energy, and hotel business units, generated $1 billion in net income from $14 billion in revenue.

Loews Hotels’ results significantly improved due to higher occupancy of 79 percent and average daily room rates of $257, as travel rebounded from the impacts of the pandemic, the company said.

Here are the 2022 figures:

In 2019, the brand was getting an average nightly rate of $288 and had 84.6 percent occupancy across its system.

In recent months, higher hotel revenues were partially offset by increased operating expenses due to the higher demand levels and resumption of additional pre-pandemic services.

Loews Sapphire Falls Resort at Universal Orlando. Source: Loews Hotels.

On January 1 Alex Tisch became the president and CEO of Loews Hotels — succeeding his cousin once removed Jon Tisch, who became executive chairman and remains co-chairman of the board. Alex, a fourth-generation family member, joined Loews Hotels in 2017 and was named its president in September 2020.

Loews Results

Hotels

Loews Hotels to Promote Alex Tisch to CEO, Succeeding Cousin Jon Tisch

1 year ago

Loews Corporation said that on January 1 CEO Alex Tisch would become president and CEO of its chain of 25 luxury properties, Loews Hotelssucceeding his cousin once removed Jon Tisch, who will become executive chairman and remain co-chairman of the board.

Alex, a fourth-generation member of the family, joined Loews Hotels in 2017 and was named president in September 2020. He has sped up Loews Hotels’ growth by adding properties, including an 800-room property in Kansas City, Missouri, and developing key partnerships in Arlington, Texas. Alex also helped to boost the metabolism of its commercial group, the company said.

He’ll succeed Jon Tisch, who has been an officer of Loews since 1986.

“In his 43 years at Loews Hotels, Jon has engineered the company’s expansion and emergence as a leading hotel business,” said James Tisch, Loews Corporation president and CEO, during an earnings call with analysts on Monday. “In particular, Jon was instrumental in building Loews Hotels’ long-standing partnership in Orlando with Universal Studios while also having the foresight to develop the iconic Loews Miami Beach Hotel.’

The November opening of a 242-room Coral Gables hotel will mean Loews Hotels will have about 10,000 rooms in the South Florida market and about 16,500 guest rooms across the country.

Loews Hotels & Co’s net income for the three months ended September 30, rose $12 million year-over-year to $25 million.

“The hotel properties at the Universal Orlando Resort contributed meaningfully to the period-over-period improvement,” the company said.

Surfside Inn and Suites at Universal’s Endless Summer Resort. Source: Loews Hotels.