Hilton Worldwide Holdings Inc. has reported a net income of $346 million for the third quarter of this year, exceeding the company’s expectations.
Among the highlights:
- Diluted EPS was $1.26 for the third quarter, and diluted EPS, adjusted for special items, was $1.31
- Net income was $346 million for the third quarter, exceeding the high end of guidance
- Adjusted EBITDA was $732 million for the third quarter, exceeding the high end of guidance
- System-wide comparable RevPAR increased 29.9%, on a currency neutral basis, for the third quarter compared to the same period in 2021
- System-wide comparable RevPAR increased 5%, on a currency neutral basis, for the third quarter compared to the same period in 2019
- Approved 19,900 new rooms for development during the third quarter, bringing Hilton’s development pipeline to 416,000 rooms as of Sept. 30
- Added 12,900 rooms to Hilton’s system in the third quarter, contributing to 12,100 net additional rooms in Hilton’s system during the period
- Repurchased 4 million shares of Hilton common stock during the third quarter, bringing total capital return, including dividends, to $538 million for the quarter and $1,324 million year to date through October
- Full-year 2022 system-wide comparable RevPAR is expected to increase between 40% and 43%, on a currency neutral basis, compared to 2021; full-year net income is projected to be between $1,219 million and $1,240 million; full-year Adjusted EBITDA is projected to be between $2,500 million and $2,530 million
- Full-year 2022 capital return is projected to be between $1.5 billion and $1.9 billion
“The third quarter marked an important milestone in our recovery as system-wide RevPAR exceeded the same period in 2019 for the first time since the pandemic began,” said Christopher J. Nassetta, president/CEO, Hilton. “Our diluted EPS, adjusted for special items and adjusted EBITDA exceeded the high end of our guidance. Improved performance reflected the continued strength in leisure travel, as well as recovering business transient and group demand. We expect these strong trends to continue throughout the fourth quarter with system-wide RevPAR once again exceeding prior peaks.”
For the three months ended Sept. 30, system-wide comparable RevPAR increased 29.9% compared to the same period in 2021, due to increases in both occupancy and ADR, and fee revenues increased 33%. For comparison to pre-pandemic results, system-wide comparable RevPAR for the three months ended Sept. 30 was up 5% compared to the same period in 2019.
For the nine months ended Sept. 30, system-wide comparable RevPAR increased 49.6% compared to the same period in 2021, due to increases in both occupancy and ADR, and fee revenues increased 51%. For comparison to pre-pandemic results, system-wide comparable RevPAR for the nine months ended Sept. 30 was down 4% compared to the same period in 2019.
For the three months ended Sept. 30, diluted EPS was $1.26 and diluted EPS, adjusted for special items, was $1.31 compared to $0.86 and $0.78, respectively, for the three months ended Sept. 30, 2021. Net income and Adjusted EBITDA were $346 million and $732 million, respectively, for the three months ended Sept. 30, compared to $240 million and $519 million, respectively, for the three months ended Sept. 30, 2021.
For the nine months ended Sept. 30, diluted EPS was $3.32 and diluted EPS, adjusted for special items, was $3.31 compared to $0.94 and $1.36, respectively, for the nine months ended Sept. 30, 2021. Net income and adjusted EBITDA were $924 million and $1,859 million, respectively, for the nine months ended Sept. 30, compared to $259 million and $1,117 million, respectively, for the nine months ended September 30, 2021.
In the third quarter, Hilton opened 80 new hotels contributing 12,900 additional rooms to Hilton’s system and achieved net unit growth of 12,100 rooms. During the quarter, the company opened the 25,000th room under the Curio Collection by Hilton brand and the 600th Hilton Hotels & Resorts property. Further, Hilton continued to expand its luxury portfolio with the opening of the Waldorf Astoria Kuwait, the brand’s first property in the country.
As of Sept. 30, Hilton’s development pipeline totaled more than 2,810 hotels representing nearly 416,000 rooms throughout 112 countries and territories, including 29 countries and territories where Hilton does not currently have any existing hotels. Additionally, of the rooms in the development pipeline, 204,200 of the rooms were under construction and 242,600 of the rooms were located outside the U.S.
