by Lacey Pfalz
Last updated: 9:00 AM ET, Wed August 7, 2024
Hilton Worldwide Holdings Inc., one of the world’s largest hotel corporations, has increased its 2024 profit forecast as hotel demand wanes in the U.S. and continues rising across the international markets.
The company’s system-wide comparable RevPAR, or revenue per available room, increased 3.5 percent year-over-year, with a net income of $422 for the quarter. Shareholders took home a diluted earnings per share this quarter of $1.67.
Hilton is also celebrating a record number of rooms in its development pipeline: at quarter’s end, the company had 508,000 rooms in its pipeline, a 15 percent growth over the same quarter last year.
It also added 22,400 rooms during the second quarter, a growth of 6.2 percent from last year. Part of this is the acquisition of Graduate Hotels, which was finalized in May. Nearly 400 other hotels have been added to the system under a partnership with Small Luxury Hotels of the World, which was announced in July.
"We are pleased to report a solid second quarter, with an increase in RevPAR of 3.5%, driven by growth in all segments, with particularly strong group performance,” said Christopher J. Nassetta, President & Chief Executive Officer of Hilton. “On the development side, we ended the quarter with a record development pipeline, up 15% from the prior year and up 8% 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 7.0 percent to 7.5 percent for the full year."
Hilton’s predictions for the full year expects system-wide RevPAR to increase 2-3 percent throughout the whole year, with a net income range of $1.532 billion and $1.555 billion. It’ll bring shareholders a diluted earnings per share of $6.06 to $6.16.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
