Hilton Worldwide Holdings Inc. reported that its third-quarter RevPAR increased by 6.8%.
Highlights include:
- Diluted EPS was $1.44 for the third quarter, and diluted EPS, adjusted for special items, was $1.67
- Net income was $379 million for the third quarter
- Adjusted EBITDA was $834 million for the third quarter
- System-wide comparable RevPAR increased 6.8%, on a currency neutral basis, for the third quarter compared to the same period in 2022
- System-wide comparable RevPAR increased 11.4%, on a currency neutral basis, for the third quarter compared to the same period in 2019
- Approved 35,500 new rooms for development during the third quarter, bringing Hilton’s development pipeline to a record 457,300 rooms as of Sept. 30, representing growth of 4% from June 30, and 10% from Sept. 30, 2022
- Added 15,700 rooms to Hilton’s system in the third quarter, resulting in 14,300 net additional rooms in Hilton’s system during the period
- Repurchased 4.5 million shares of Hilton common stock during the third quarter, bringing total capital return, including dividends, to $723 million for the quarter and $1,938 million year to date through October
- Expanded its brand portfolio of open hotels, with the openings of the first Spark by Hilton and the first Tempo by Hilton during the third quarter
- Full year 2023 system-wide RevPAR is expected to increase between 12% and 12.5% on a comparable and currency neutral basis compared to 2022; full year net income is projected to be between $1.375 billion and $1.389 billion; full year adjusted EBITDA is projected to be between $3.025 billion and $3.045 billion
Full year 2023 capital return is projected to be between $2.4 billion and $2.6 billion
“We continued to see strong results during the third quarter, exceeding our expectations for system-wide RevPAR growth, with growth across all customer segments,” said Christopher J. Nassetta, president/CEO, Hilton. “We also continue to leverage our industry-leading portfolio of brands to drive further growth of our global network. We believe we have hit an inflection point and expect a meaningful uptick in openings in the fourth quarter with continued positive momentum into next year. With a record number of approvals year-to-date driving the largest pipeline in our history, we are confident in our ability to accelerate net unit growth to 5.5% to 6% next year.”
For the three months ended Sept. 30, system-wide comparable RevPAR increased 6.8% compared to the same period in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 12.3% compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR for the three months ended Sept. 30, increased 11.4% compared to the same period in 2019, and management and franchise fee revenues increased 36.4% from the same period in 2019.
For the nine months ended Sept. 30, system-wide comparable RevPAR increased 14.9% compared to the same period in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 18.4% compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR for the nine months ended Sept. 30, increased 9.7% compared to the same period in 2019, and management and franchise fee revenues increased 31.3% from the same period in 2019.
In the third quarter of 2023, Hilton opened 107 new hotels totaling 15,700 rooms and achieved net unit growth of 14,300 rooms. During the quarter, the company had two noteworthy brand debuts, celebrating the first Spark by Hilton which opened in Mystic, CT, and the first Tempo by Hilton, which opened in New York Times Square. This momentum of firsts continued into October 2023 with the announcement of the Waldorf Astoria Residences Pompano Beach, the brand’s first standalone residential project.
Hilton added 35,500 rooms to the development pipeline during the third quarter, and, as of September 30, 2023, Hilton’s development pipeline totaled approximately 3,190 hotels representing 457,300 rooms throughout 119 countries and territories, including 29 countries and territories where Hilton did not have any existing hotels.
Additionally, of the rooms in the development pipeline, 223,000 of the rooms were under construction and 257,200 of the rooms were located outside of the U.S.
