Hilton ‘on track' to complete spin-off transactions

26 October 2016 by Katherine Price

Hilton Worldwide has reported an adjusted EBITDA of £626m for the third quarter of 2016, compared with £620m over the same period in 2015.

The hotel group added that it was on track to complete the spin-off transactions of Park Hotels & Resorts and Hilton Grand Vacations around the year end.

The results come after the recent announcement that a Chinese tourism company will be acquiring a 25% stake in Hilton Worldwide from affiliates of Blackstone.

For the three months ended 30 September, revpar increased 1.3% on the same three-month period in 2015. Hilton Worldwide also approved 27,000 new rooms for development during the third quarter, bringing year-to-date approvals to 77,000 rooms, and growing its development pipeline 15% from 2015 to 1,898 hotels, consisting of 300,000 rooms.

Net unit growth was 13,100 rooms in the third quarter, representing a 7% growth in managed and franchised rooms from 2015, while net income was $192m (£157m) for the three months ended September 30, compared to $283m (£232m) for same period in 2015.

Christopher J Nassetta, president and chief executive officer of Hilton, said: "Even with a macroeconomic environment that continues to underperform expectations, we delivered Adjusted EBITDA and EPS, adjusted for special items, within our guidance ranges and continued to increase our global share of development activity this quarter."

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