HILTON REPORTS FIRST QUARTER RESULTS
Hilton Worldwide Holdings Inc. ("Hilton," "the Company," "we," "us" or "our") (NYSE: HLT) today reported its first quarter 2024 results. |
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HILTON REPORTS FIRST QUARTER RESULTS
Hilton Worldwide Holdings Inc. ("Hilton," "the Company," "we," "us" or "our") (NYSE: HLT) today reported its first quarter 2024 results. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2024-04-25
- Diluted EPS was $1.04 for the first quarter, and diluted EPS, adjusted for special items, was $1.53
- Net income was $268 million for the first quarter
- Adjusted EBITDA was $750 million for the first quarter
- System-wide comparable RevPAR increased 2.0 percent, on a currency neutral basis, for the first quarter compared to the same period in 2023
- Approved 29,800 new rooms for development during the first quarter, bringing Hilton's development pipeline to a record 472,300 rooms as of March 31, 2024, representing growth of 10 percent from March 31, 2023
- Added 16,800 rooms to Hilton's system in the first quarter, resulting in 14,200 net additional rooms for the first quarter, contributing to net unit growth of 5.6 percent from March 31, 2023
- Repurchased 3.4 million shares of Hilton common stock during the first quarter; total capital return, including dividends, was $701 million for the quarter and $908 million year to date through April
- Announced the planned acquisition of the Graduate Hotels brand, including the expected addition of approximately 35 franchised hotels to our portfolio in the second quarter
- In April 2024, acquired a controlling financial interest in the Sydell Group, which owns the NoMad brand, marking Hilton's debut in the luxury lifestyle space and providing further luxury expansion opportunities
- In March 2024, issued $1.0 billion of senior notes consisting of: (i) $550 million aggregate principal amount of 5.875% Senior Notes due 2029 and (ii) $450 million aggregate principal amount of 6.125% Senior Notes due 2032
- Full year 2024 system-wide RevPAR is projected to increase between 2.0 percent and 4.0 percent on a comparable and currency neutral basis compared to 2023; full year net income is projected to be between $1,586 million and $1,621 million; full year Adjusted EBITDA is projected to be between $3,375 million and $3,425 million
- Full year 2024 capital return is projected to be approximately $3.0 billion
Overview
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "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. During the first quarter, system-wide RevPAR increased 2.0 percent 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 6.0 percent to 6.5 percent for the full year, excluding the planned acquisition of the Graduate Hotels brand."
For the three months ended March 31, 2024, system-wide comparable RevPAR increased 2.0 percent compared to the same period in 2023 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 14.4 percent compared to the same period in 2023.
For the three months ended March 31, 2024, 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, 2024, compared to $209 million and $641 million, respectively, for the three months ended March 31, 2023.
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