by Donald Wood
Last updated: 1:35 PM ET, Wed April 26, 2023
Hilton Worldwide Holdings announced its first quarter 2023
results on Wednesday and raised its full-year adjusted profit forecast as the
company bets on pent-up demand to boost earnings.
Hilton officials said demand for travel and prices continued
to climb to start the year, while data showed people are booking longer
vacations despite economic uncertainties. In total, net income was $209 million
for the first quarter.
With adjusted EBITDA reaching $641 million, system-wide
comparable RevPAR increased 30 percent compared to the same quarter in 2022 and
eight percent compared to pre-pandemic totals.
During the first quarter, the hotel giant approved 24,900
new rooms for development, bringing Hilton's pipeline to 428,100 rooms as of
March 31. The company also added 9,200 rooms to its system.
“We carried strong momentum into 2023, exceeding the high
end of our guidance for system-wide RevPAR, driving strong bottom-line results
and delivering meaningful free cash flow available for return to our
shareholders,” Hilton CEO Christopher Nassetta said.
“As a result of our strong performance and positive outlook,
we are raising our Adjusted EBITDA guidance for the full year,” Nassetta continued.
As for the updated full-year projections for 2023, system-wide
RevPAR is expected to increase between 8-11 percent compared to 2022, net
income is projected to be between $1,331-$1,385 million and adjusted EBITDA is
projected to be between $2,875-$2,950 million.
Full-year capital return is projected to be between $1.8
billion and $2.2 billion.
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