Hilton raises full year outlook after strong Q1 results

Hilton Worldwide has raised its full year 2015 outlook after positive results in its first quarter statement.

For the three months to 31 March 2015, the company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased 18% from the same period in 2014 to $599m (£388m), while revpar (revenue per available room) was up 6.6% for the first quarter on a currency-neutral basis, in comparison to 2014.

Gross operating profit margins for US comparable owned and operated hotels increased over 120 basis points for the first quarter compared to the same period in 2014. Earnings per share were also positive, at $0.15 (£0.10) compared to $0.12 (£0.08) for the three months ended 31 March 2014.

The positive figures mean the company has increased its outlook for the full year, with projected adjusted EBITDA now between $2,810m (£1,821m)and $2,870m (£1,860m).

The results come as the company continues its expansion, having opened more than 8,000 hotel rooms within the first quarter, and more than 23,000 new rooms approved for future development. This moves the development pipeline to 1,432 hotels, or 240,000 rooms, as of 31 March 2015.

Hilton also agreed to sell Hilton Sydney, Australia, for AUS $442m (£227m), and use the proceeds to reduce its long-term debt, alongside an agreement to acquire the Cypress hotel in Cupertino California for $112m, thanks to the proceeds of the Waldolf Astoria New York sale.

Christopher J Nassetta, president and chief executive officer of Hilton Worldwide, commented that he was pleased with the results, which had been positive despite inclement weather in the US at the start of the year.

He said: "We started the year with another strong quarter, with top-line growth at the high end of our guidance. Our portfolio of industry leading brands continues to fuel our growth, resulting in the industry's largest pipeline and most rooms under construction globally."

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