Hilton Worldwide Holdings Inc., for the first quarter ended March 31, reported that system-wide comparable RevPAR increased 2%, on a currency neutral basis, compared to the same period in 2023. Net income for the period was $268 million.
“We are pleased to report a strong first quarter with bottom-line results meaningfully exceeding our expectations, further demonstrating the power of our resilient, fee-based business model and strong development story,” said Christopher J. Nassetta, president/CEO, Hilton. “During the first quarter, system-wide RevPAR increased 2% as renovations, inclement weather and unfavorable holiday shifts weighed on performance more than anticipated. On the development side, we continued to see great momentum across signings, starts and openings. As a result of our record pipeline and the growth pace we’ve seen to-date, we expect net unit growth of 6% to 6.5 percent for the full year, excluding the planned acquisition of the Graduate Hotels brand.”
Other first-quarter highlights include:
- Diluted EPS was $1.04, and diluted EPS, adjusted for special items, was $1.53
- Adjusted EBITDA was $750 million
- Approved 29,800 new rooms for development during the quarter, bringing Hilton’s development pipeline to a record 472,300 rooms as of March 31, representing growth of 10% from March 31, 2023
- Added 16,800 rooms to Hilton’s system, resulting in 14,200 net additional rooms, contributing to net unit growth of 5.6% from March 31, 2023
- Announced the planned acquisition of the Graduate Hotels brand, including the expected addition of approximately 35 franchised hotels to the portfolio in the second quarter
- In April, Hilton acquired a controlling financial interest in the Sydell Group, which owns the NoMad brand, marking the company’s debut in the luxury lifestyle space and providing further luxury expansion opportunities
- Full-year 2024 system-wide RevPAR is projected to increase between 2% and 4% on a comparable and currency neutral basis compared to 2023; full-year net income is projected to be between $1.586 billion and $1.621 billion; full-year adjusted EBITDA is projected to be between $3.375 billion and $3.425 billion
- Full-year 2024 capital return is projected to be approximately $3 billion
Overview
For the three months ended March 31, system-wide comparable RevPAR increased 2% compared to the same period in 2023 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 14.4% compared to the same period in 2023.
For the three months, diluted EPS was $1.04 and diluted EPS, adjusted for special items, was $1.53, compared to $0.77 and $1.24, respectively, for the three months ended March 31, 2023. Net income and adjusted EBITDA were $268 million and $750 million, respectively, for the three months ended March 31, compared to $209 million and $641 million, respectively, for the three months ended March 31, 2023.
Development
In the first quarter, Hilton opened 106 hotels, totaling 16,800 rooms, resulting in 14,200 net room additions. During the quarter, Hilton celebrated a number of significant luxury and lifestyle openings including the grand opening of the Conrad Orlando in Florida, the debut of LXR Hotels & Resorts in Hawaii and the introduction of the Waldorf Astoria and Canopy by Hilton brands to the Seychelles. Furthermore, Hilton debuted the Curio Collection by Hilton brand in Kenya and Motto by Hilton brand in Peru and entered into partnerships with AutoCamp and Small Luxury Hotels of the World (SLH), which will provide new elevated lodging experiences to Hilton guests. Hilton also announced the Waldorf Astoria Residences Dubai Downtown, which will be the company’s first standalone residential property outside of the U.S. Additionally, during the quarter, Hampton by Hilton celebrated the opening of its 3,000th hotel globally, kicking off a year of milestones and achievements for the brand including its 40th anniversary, entry into its 40th country and its expected groundbreaking entry into its fifth continent, Africa, later this year.
Hilton added 29,800 rooms to the development pipeline during the first quarter, and, as of March 31, the company’s development pipeline totaled approximately 3,380 hotels representing 472,300 rooms throughout 119 countries and territories, including 31 countries and territories where Hilton had no existing hotels. Additionally, of the rooms in the development pipeline, 229,700 were under construction and 267,900 were located outside of the U.S.
Outlook
Hilton’s outlook does not include the effect of the planned acquisition of Graduate Hotels.
Full-year 2024
- System-wide comparable RevPAR, on a currency neutral basis, is projected to increase between 2% and 4% compared to 2023.
- Diluted EPS is projected to be between $6.21 and $6.35.
- Diluted EPS, adjusted for special items, is projected to be between $6.89 and $7.03.
- Net income is projected to be between $1.586 billion and $1.621 billion.
- Adjusted EBITDA is projected to be between $3.375 billion and $3.425 billion.
- Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are projected to be between $250 million and $300 million.
- Capital return is projected to be approximately $3 billion.
- General and administrative expenses are projected to be between $415 million and $430 million.
- Net unit growth, excluding the effect of the planned acquisition of the Graduate Hotels brand, is projected to be between 6% and 6.5%.
Second-quarter 2024
- System-wide comparable RevPAR, on a currency neutral basis, is projected to increase between 2% and 4% compared to the second quarter of 2023.
- Diluted EPS is projected to be between $1.74 and $1.80.
- Diluted EPS, adjusted for special items, is projected to be between $1.80 and $1.86.
- Net income is projected to be between $443 million and $457 million.
- Adjusted EBITDA is projected to be between $890 million and $910 million.
