09
News
September 2024 | Issue 229
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Ravi Master
Owner, Scottish Inns
Locust Grove, GA
Family member since 2016
ilton Worldwide Holdings reported net income of $422
million for the second quarter ending June 30, up from $413
million last year. The development pipeline grew 15 percent
year-over-year to 3,870 hotels with 508,300 rooms, an 8
percent increase from the previous quarter. Systemwide
RevPAR rose 3.5 percent year-over-year due to higher
occupancy and ADR.
"We are pleased to report a solid second quarter, with an
increase in RevPAR of 3.5 percent, driven by growth in all
segments, with particularly strong group performance,”
said Christopher Nassetta, Hilton’s president and CEO. “On
the development side, we ended the quarter with a record
development pipeline, up 15 percent from the prior year and
up 8 percent sequentially from the first quarter, including
strategic partner hotels. Looking forward to the rest of the
year, with the continued growth of our existing brands, as
well as the addition of our new brands and strategic partner
hotels, we expect net unit growth of 7 percent to 7.5 percent
for the full year."
Adjusted EBITDA for the three months ended June
30 was $917 million, up from $811 million in 2023, Hilton
said. Management and franchise fee revenues increased
by 10 percent year-over-year. In the US, second-quarter
occupancy rose by 1.1 percentage points to 76.8 percent, ADR
increased by 1.4 percent to $172.36, and RevPAR climbed 2.9
percent to $132.33.
Hilton opened 165 hotels with 22,400 rooms in the second
quarter, adding 18,000 net rooms for 6.2 percent net unit
growth. The company expanded its lifestyle portfolio by
acquiring the Graduate brand, adding 32 hotels and four
more in the pipeline. In July, Hilton partnered with Small
Luxury Hotels of the World, adding 400 SLH hotels to its
system. The NoMad London, the first NoMad hotel, also
joined Hilton’s portfolio, and 27 Spark hotels opened, more
than doubling the brand’s supply.
Hilton added 62,700 rooms to its development pipeline
during the second quarter. As of June 30, the pipeline
included 3,870 hotels with 508,300 rooms, up 15 percent
year-over-year and 8 percent from the prior quarter. These
hotels are in 136 countries and territories, including 39 with
no previous Hilton presence, with 251,800 rooms under
construction and 298,800 rooms outside the US. Hilton’s
global hotel count surpassed 8,000 in July.
For 2024, Hilton projects a 2 percent to 3 percent increase
in systemwide comparable RevPAR (currency-neutral)
compared to 2023. Net income is expected between $1.53
billion and $1.55 billion, with adjusted EBITDA projected
at $3.37 billion to $3.40 billion. Contract acquisition costs
and capital expenditures, excluding reimbursements, are
estimated at $250 million to $300 million.
Hilton forecasted a 2 percent to 3 percent increase in
systemwide comparable RevPAR (currency-neutral) during
the third quarter. Net income is projected to be between $435 million
and $448 million, with adjusted EBITDA ranging from $875 million to
$890 million.
Hilton’s net income, RevPAR and
pipeline rise in Q2
Second-quarter occupancy in the U.S. rose to 76.8 percent, ADR to $172.36, and
RevPAR to $132.33