by Lacey Pfalz
Last updated: 9:40 AM ET, Wed February 7, 2024
As Hilton predicts a steady leisure travel demand in the U.S., it also continues a global luxury expansion with a new partnership with an independent hotel portfolio, Small Luxury Hotels of the World.
RevPAR, or revenue per available room, a key metric in the hotel industry, rose 5.7 percent year-over-year in 2023, to $107.69, but this year the profit is expected to plateau somewhat, with predictions for profit to be between $6.80 and $6.94 per share, below analysts’ previous predictions of $7.07 per share.
Hilton's President & CEO, Chris Nassetta, said during the earnings call, "We expect performance to be driven by continued growth across all major regions, with international markets modestly outpacing the US. We also expect positive RevPAR growth across all segments, driven by continued recovery in business transient and group, coupled with steady leisure demand. We expect continued recovery in small company meetings and large association and convention business to drive strong group performance."
RevPAR is expected to increase 2 to 4 percent from 2023 (both from rising costs and new development), with a full-year net income between $1.69 and $1.72 billion. The last year also saw a record number of hotel signings and in Hilton's development pipeline, with over 3,300 new hotels in development.
Hilton continues to expand its luxury offerings with the partnership with Small Luxury Hotels of the World.
The independent hotel collection offers 560 boutique luxury hotels in 90 countries, all of which will be available to book and earn loyalty rewards through Hilton Honors. The collection will be known as SLH and will join Hilton’s other luxury brands such as Waldorf Astoria hotels & Resorts.
“We’re thrilled to begin this win-win relationship with Hilton as it brings exciting possibilities for both brands,” said Shaun Leleu, chairman, Small Luxury Hotels of the World. “Hilton customers, including Hilton Honors members, gain access to our unrivaled collection of exceptional boutique hotels, while our properties enjoy amplified reach to a loyal and discerning audience."
"It's a game changer for independently owned hotels on a global scale," Leleu continued.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
