Hilton Worldwide Holdings Inc. (referred to as “Hilton”) released its second-quarter performance report for 2023 ending on June 30th. The group’s revenue surged by 18.75% YoY to $2.66 billion, while net income attributable to shareholders increased by 11.68% YoY to $411 million. The adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached approximately $811 million, marking a 19.4% YoY growth.
The second-quarter results also highlighted the following key points:
- Occupancy rates of comparable system-wide hotels increased by 4.2 percentage points, reaching 74.6%.
- Average Daily Rate (ADR) achieved $163.47.
- Comparable system-wide RevPAR (Revenue Per Available Room) rose by 12.1% YoY to $122.02.
- The group added 92 new hotels and 14,000 rooms globally, bringing the total number of hotels to nearly 7,300, with a net increase of 11,200 rooms.
- Hilton Honors membership reached 165 million.
As of the closing on July 27th, Hilton’s stock price rose by 1.58% to $152.64 per share, with a market capitalization of approximately $39.917 billion.
Hilton’s President and CEO, Chris Nassetta, remarked, “System-wide comparable RevPAR continued to expand throughout the quarter, experiencing growth across all of our customer segments and regions, driven by a strong preference for our brands. Our top-line performance yielded meaningful bottom-line results, as we exceeded the high end of our guidance for Adjusted EBITDA and diluted EPS, adjusted for special items. We continue to drive the long-term growth of our global network through the launch of strategic, new brands and have already added over 60,000 rooms to our development pipeline during 2023.”
Specifically in the market:
In the Asia-Pacific region, comparable system-wide RevPAR surged by 79%, mainly driven by the ongoing recovery of demand in the Chinese market. Nassetta mentioned that the group signed contracts for 3,700 new rooms in China during the quarter, tripling the number compared to the previous year and accounting for over one-third of the total signings in China.
Based on this, the group released its full-year outlook for 2023:
- Comparable system-wide RevPAR is expected to grow between 10% to 12%.
- Net income is projected to reach $1.387 billion to $1.422 billion.
- Adjusted EBITDA is estimated to be between $2.975 billion to $3.025 billion.
| Source: Official financial report
| Image Credit: Hilton Official Website
| Editor: Wang Jiaqi
