Hilton reports 9% earnings increase despite slowing market
Hilton has reported a 9% increase in earnings despite a slowing market, and revenue per available room (revpar) growth of 0.4%, driven by higher occupancy.
The hotel giant reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $605m (£470m) in its third quarter results for the year, a 9% increase on the same three-month period in 2018.
The group also approved 25,200 new rooms for development during the third quarter, growing Hilton's development pipeline to 379,000 rooms as of 30 September 30 2019. The group opened 118 new hotels in the third quarter and is on track to deliver approximately 6.5% net unit growth for the full year.
Full year 2019 revpar is expected to be broadly flat with an increase of approximately 1% compared to 2018 with a similar revpar growth expected for 2020. Full year adjusted EBITDA is projected to be between $2.29b (£1.77b) and $2.31b (£1.79b).
Hilton said it remains on track to grow its luxury portfolio by 17% in 2019, which in the UK has seen the Millennium Hotel London Mayfair rebrand under Hilton's luxury LXR Hotels & Resorts brand as the Biltmore.
Christopher J Nassetta, president and chief executive of Hilton, said: "Despite the overall slowing macro environment, we are pleased to deliver strong bottom-line results for the third quarter. Adjusted EBITDA was towards the high end of guidance and diluted EPS, adjusted for special items, exceeded our expectations, driven by strong net unit growth. Additionally, we continue to achieve market share gains across all brands and regions year to date."
Hilton has a portfolio of nearly 6,000 properties with more than 954,000 rooms in 117 countries and territories, across 17 brands including Curio Collection, Conrad and Waldorf Astoria.
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