Hilton lifts comparable room revenue 5.8 per cent at constant currencies
Hilton increased comparable revenue per available room by 5.8 per cent at constant currencies in the third quarter. Higher occupancy and daily room rates accompanied net income of 536 million dollars. The hotel group opened 182 properties and added 23,000 rooms after removals, while its development pipeline reached 543,100 rooms.
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Room revenue grows with occupancy and prices
Hilton, the US hotel operator and franchisor, reported third-quarter adjusted earnings of 2.45 dollars per share on 27 October. That compared with 2.11 dollars a year earlier. Net income increased from 421 million dollars to 536 million dollars, while diluted earnings rose from 1.78 dollars to 2.37 dollars per share.[1]
The adjusted earnings result exceeded analysts’ expectations of 2.37 dollars per share. Comparable revenue per available room increased 5.8 per cent at constant currencies. Hilton attributed that rise to higher occupancy and average daily room rates. The measure divides room revenue by available room capacity.[1], [2]
Openings add 23,000 rooms after removals
The company opened 182 hotels with 27,000 rooms during the quarter. After rooms leaving the system were deducted, net additions totalled 23,000. Net unit growth from the previous September was 6.0 per cent. Hilton also approved 30,500 rooms for development during the quarter.[1]
At September’s end, the development pipeline contained 3,869 hotels and 543,100 rooms in 135 countries and territories. Nearly half of the rooms were under construction and more than half were outside the United States. Management and franchise fee revenue increased 9.5 per cent during the quarter.[1]
Capital returns reach 879 million dollars
Hilton repurchased 2.6 million shares during the quarter. Buybacks and dividends together returned 879 million dollars to shareholders. Outstanding debt stood at 13.5 billion dollars, with a weighted average interest rate of 5.09 per cent. Cash and cash equivalents totalled 830 million dollars at the end of September.[1]
