Saturday, November 18, 2017

Hilton reports second quarter results with development focus

Hilton Worldwide has reported its second quarter 2017 results: “Development activity continues to be strong with nearly 1 in 4 rooms under construction globally.”

All historical share and share-related information presented has been retrospectively adjusted to reflect the 1-for-3 reverse stock split of Hilton’s outstanding common stock that occurred on January 3, 2017. Highlights include:

  • Diluted EPS from continuing operations for the second quarter was $0.51 and diluted EPS, adjusted for special items, was $0.52, an increase of 30 percent from the second quarter of 2016 on a pro forma basis
  • Net income for the second quarter was $167 million • Adjusted EBITDA for the second quarter was $519 million, an increase of 10 percent from pro forma Adjusted EBITDA for the second quarter of 2016
  • Adjusted EBITDA margin was 57.0 percent, an increase of 340 basis points from pro forma Adjusted EBITDA margin for the second quarter of 2016
  • System-wide comparable RevPAR increased 1.8 percent on a currency neutral basis for the second quarter compared to the prior year
  • Added 13,400 net rooms in the second quarter, representing approximately 30 percent growth from the same period in 2016
  • Approved 27,400 new rooms for development during the second quarter, growing Hilton’s development pipeline to a record 332,000 rooms, representing 15 percent growth from June 30, 2016
  • Repurchased 4.5 million shares of Hilton common stock for an aggregate cost of $282 million during the second quarter, and 6.8 million shares at an aggregate cost of $425 million since share repurchases began in March 2017
  • Raised Adjusted EBITDA guidance for full year 2017 to between $1,880 million and $1,920 million, an increase of $20 million at the midpoint
  • Raised cash available for capital return guidance for full year 2017 to between $1.0 billion and $1.1 billion, an increase of $100 million at the midpoint.

Christopher J. Nassetta, president and chief executive officer of Hilton, said:

“We had another successful quarter, exceeding the high end of our guidance for adjusted EBITDA and diluted EPS, adjusted for special items, and as a result, we are increasing our full year outlook, including our expectations for capital return. Fundamentals remain largely stable around the world, and we maintain our expectations for full year RevPAR growth of 1.0 percent to 3.0 percent. Development activity continues to be strong with nearly 1 in 4 rooms under construction globally set to become part of our portfolio.

“Additionally, we expect to increase our luxury distribution by approximately 15 percent this year, including openings in the quarter, such as the Waldorf Astoria Beverly Hills, Conrad Osaka, Conrad Guangzhou and Conrad San Luis Potosi.”

About accomnews

accomnews

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Exclusive affiliation agreement extended

The multi-year contract extends the relationship first established in 2000 and comprises the existing 23 club properties, as well as future properties...

Do this: an easy trick for higher organic traffic

Wanna bump your page ranking? This page is vital to Google and to you...

Check it out before checking in: 360° videos

Accomnews investigates new technology that’s changing the way guests check out hotels before they check in...