HILTON WORLDWIDE HOLDINGS reported a 1.4 percent increase in systemwide comparable RevPAR, on a currency-neutral basis, for the third quarter compared to the same period in 2023. Net income for the period was $344 million.
The company also opened 531 hotels totaling 36,600 rooms, adding 33,600 net rooms to its system, which Hilton stated marks a record net unit growth of 7.8 percent year-over-year.
"We were pleased to deliver continued strong bottom-line results that exceeded our guidance, despite slower top-line growth driven by modestly slower macro trends, weather impacts, and unfavorable calendar shifts,” said Christopher Nassetta, Hilton’s president and CEO. “We continued to demonstrate the strength of our model, opening more rooms than any other quarter in our history, surpassing 8,000 hotels and achieving net unit growth of 7.8 percent."
During the third quarter, the company approved 27,500 new rooms for development, bringing the total pipeline to 492,400 rooms as of Sept. 30, an 8 percent increase from the prior year. Adjusted EBITDA for the period was $904 million.
Hilton repurchased 3.3 million shares during the quarter, totaling a capital return of $764 million and $2.42 billion year-to-date through October. Additionally, in September, it issued $1 billion in 5.875 percent senior notes due 2033.
For the full year 2024, Hilton projects system-wide RevPAR growth of 2 percent to 2.5 percent, net income between $1.405 billion and $1.429 billion, and adjusted EBITDA between $3.375 billion and $3.405 billion, with a projected capital return of approximately $3 billion. Net unit growth for 2025 is expected to range from 6 percent to 7 percent.
Hilton reported net income of $422 million for the second quarter ending June 30, up from $413 million a year earlier.
RevPAR and earnings overview
For the third quarter ended Sept. 30, systemwide comparable RevPAR increased 1.4 percent year-over-year due to higher occupancy and ADR, while management and franchise fee revenues rose 8.3 percent. For the nine months ended Sept. 30, systemwide comparable RevPAR increased 2.4 percent, driven by higher occupancy and ADR, with management and franchise fee revenues up 10.7 percent.
In the third quarter, diluted EPS was $1.38, with adjusted EPS at $1.92, compared to $1.44 and $1.67, respectively, for the same period in 2023. Net income and adjusted EBITDA were $344 million and $904 million, respectively, compared to $379 million and $834 million in the prior-year period.
Development highlights
Hilton opened 531 hotels totaling 36,600 rooms in the third quarter, resulting in 33,600 net room additions. During this period, NoMad, Graduate by Hilton and Small Luxury Hotels of the World became available for reservations on Hilton’s booking channels, expanding the portfolio to 10 additional countries and territories.
The company continued its growth in the Asia-Pacific market, surpassing 900 hotels in the region and opening its 700th hotel in China. Additionally, the Spark by Hilton brand grew with over 20 new hotels, including the first Spark property in Canada.
The development pipeline added 27,500 rooms in the third quarter, reaching a total of 3,525 hotels and 492,400 rooms across 120 countries and territories, including 28 new markets for Hilton. Of the pipeline rooms, 235,400 were under construction, with 280,700 outside the U.S.
2023, 2024 outlook
For 2024, systemwide comparable RevPAR is projected to increase 2 percent to 2.5 percent on a currency-neutral basis. Diluted EPS is forecast to be between $5.58 and $5.68, while adjusted diluted EPS (excluding special items) is projected between $6.93 and $7.03. Net income is expected between $1.405 billion and $1.429 billion, and adjusted EBITDA is projected at $3.375 billion to $3.405 billion.
Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are expected to be between $200 million and $250 million, with a capital return of approximately $3 billion. General and administrative expenses are projected between $415 million and $430 million, with net unit growth between 7 percent and 7.5 percent.
For the fourth quarter of 2023, systemwide comparable RevPAR is projected to increase between 1 percent and 2 percent on a currency-neutral basis. Diluted EPS is expected to range from $1.49 to $1.59, while adjusted diluted EPS is projected between $1.57 and $1.67. Net income is forecast between $371 million and $395 million, with adjusted EBITDA expected between $804 million and $834 million.
In October, Hilton announced its partnership with Be My Eyes, a mobile app that connects blind and low-vision users with sighted volunteers and AI through live video, to enhance accessibility for visually impaired guests.
