Hilton's second quarter financial results "exceeded expectations", according to president and chief executive Christopher J Nassetta.
The global hotel company has reported net income of $217m (£165m), an increase of 44% from the same period in 2017, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $555m (£422m), an increase of 10% on 2017, exceeding the high end of guidance.
Revenue per available room (revpar) growth was driven by increases in both average daily rate (ADR) and occupancy, particularly in Europe.
Nassetta said: "We had another strong quarter with fundamentals driving system-wide revpar growth of 4%, achieving the high end of guidance. This growth coupled with continued net unit growth resulted in adjusted EBITDA growth of 10%, exceeding our expectations."
Management and franchise fee revenues increased 11% due to revpar growth, increased license fees and the addition of new properties.
The group approved 28,800 new rooms for development during the three months to the end of June, growing Hilton's development pipeline to 362,000 rooms as of 30 June 2018, representing 2,370 hotels and 9% growth from 30 June 2017. Hilton opened 17,100 rooms in the second quarter and achieved net unit growth of 15,800 rooms, an 18% increase from the same period in 2017.
During the second quarter Hilton also repurchased 18.5 million shares of Hilton common stock for $1.3b (£9.9m), including shares repurchased from HNA and Blackstone.
For the year to date, the six months ended 30 June 2018, revpar grew 3.9%, while net income and adjusted EBITDA were $380m (£289m) and $1b (£760m), respectively, compared to $199m (£151m) and $914m (£695m) for the six months ended 30 June 2017.
Hilton's full-year revpar is expected to increase 3%-4% compared to 2017. Net income is projected to be between $804m (£611m) and $826m (£628m) and adjusted EBITDA is projected to be between $2.07b (£1.57b) and $2.1b (£1.6b), growing 8-10%.
Management and franchise fee revenue is projected to increase 9-11% compared to 2017, while capital expenditures and contract acquisition costs, excluding capital expenditures reimbursed by hotel owners, are expected to be between $175m (£133m) and $200m (£152m).
Hilton predicts a 2.5%-3% revpar increase for its third quarter on last year; net income is projected to be $215m-$229m (£163m-£174m) and adjusted EBITDA is projected to be $540m-$560m (£410m-£426m).
Hilton's portfolio includes 14 brands, such as Waldorf Astoria, Conrad and Curio Collection by Hilton, with more than 5,400 properties and nearly 880,000 rooms in 106 countries and territories.