Hilton reports first quarter results; raises full year outlook
Hilton Worldwide Holdings Inc. ("Hilton" or the "Company") (NYSE: HLT) today reported its first quarter 2018 results. |
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Hilton reports first quarter results; raises full year outlook
Hilton Worldwide Holdings Inc. ("Hilton" or the "Company") (NYSE: HLT) today reported its first quarter 2018 results. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2018-04-27
All results herein, including prior year, reflect the adoption of new accounting standards, including Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). Highlights include: - Diluted EPS was $0.51 for the first quarter, and diluted EPS, adjusted for special items, was $0.55, a 45 percent increase from the first quarter of 2017
- Net income for the first quarter was $163 million
- Adjusted EBITDA for the first quarter was $445 million, an increase of 9 percent from the same period in 2017
- System-wide comparable RevPAR increased 3.9 percent on a currency neutral basis for the first quarter from the same period in 2017
- Approved 25,700 new rooms for development during the first quarter, growing Hilton's development pipeline to 355,000 rooms as of March 31, 2018, representing 9 percent growth from March 31, 2017
- Opened 10,600 rooms in the first quarter, a 7 percent increase from the same period in 2017, adding 7,100 net rooms
- Repurchased 1.3 million shares of Hilton common stock for an aggregate cost of $110 million during the first quarter
- In April 2018, repurchased 16.5 million shares of Hilton common stock from HNA for $1.17 billion in connection with HNA's full divestiture of its investment in Hilton
- In April 2018, issued $1.5 billion aggregate principal amount of 5.125% Senior Notes due 2026 to facilitate the stock buyback from HNA and to repay approximately $500 million of Hilton's senior secured term loan facility
- Raised guidance for full year 2018 system-wide comparable RevPAR growth to between 2.0 percent and 4.0 percent, an increase of 100 basis points at the mid point
- Raised Adjusted EBITDA guidance for full year 2018 to between $2,060 million and $2,100 million
- Raised capital return guidance for full year 2018 to between $1.7 billion and $1.9 billion
Overview Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We are thrilled with the strong start to the year, reporting first quarter results that exceeded the high end of our guidance for system-wide RevPAR, Adjusted EBITDA and diluted EPS, adjusted for special items. As a result of our strong performance and positive outlook for the remainder of the year, we are raising guidance for the full year. We also continue to deliver on our capital return strategy through share repurchases and dividends, returning more than $1.3 billion so far this year."
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