Hilton Reports Third Quarter Results

Yesterday, Hilton's CFO, Kevin Jacobs, revealed that the company's third-quarter earnings showed record-breaking unit growth. Hilton added over 530 hotels to its portfolio, with a 7.8% increase in net units. Hilton Team Members continue to unlock its growth by providing dependable and amiable stays, and its brands remain a top choice for travellers and owners. 

 Third Quarter 2024 Results

• Diluted EPS was $1.38 for the third quarter, and diluted EPS, adjusted for special items, was $1.92
• Net income was $344 million for the third quarter
• Adjusted EBITDA was $904 million for the third quarter
• System-wide comparable RevPAR increased 1.4 percent, on a currency-neutral basis, for the third quarter compared to the same period in 2023
• Approved 27,500 new rooms for development during the third quarter, bringing its development pipeline to 492,400 rooms as of September 30, 2024, representing growth of 8 percent from September 30, 2023
• Added a record 36,600 rooms to its system in the third quarter, resulting in 33,600 net additional rooms for the third quarter, contributing to a record net unit growth of 7.8 percent from September 30, 2023
• Repurchased 3.3 million shares of Hilton common stock during the third quarter, bringing total capital return, including dividends, to $764 million for the quarter and $2,422 million year to date through October
• Issued $1.0 billion aggregate principal amount of 5.875% Senior Notes due 2033 in September 2024
• Full-year 2024 system-wide RevPAR is projected to increase between 2.0 percent and 2.5 percent on a comparable and currency-neutral basis compared to 2023; full-year net income is projected to be between $1,405 million and $1,429 million; full-year Adjusted EBITDA is projected to be between $3,375 million and $3,405 million
• Full year 2024 capital return is projected to be approximately $3.0 billion
• Net unit growth for 2025 is expected to be between 6.0 percent and 7.0 percent

STATEMENTS

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "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 unfavourable calendar shifts. 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."

Development

Hilton added 33,600 net rooms in the third quarter of 2024 by opening 531 hotels with a total of 36,600 rooms. During the quarter, its booking channels started accepting reservations for NoMad, Graduate by Hilton, and Small Luxury Hotels of the World ("SLH"). Its hotel inventory now includes ten more countries and territories thanks to the addition of SLH hotels, which enables visitors to reserve, accrue, and use Honors points in more desirable locations. Hilton opened its 700th hotel in China and surpassed 900 hotels in the Asia Pacific as part of its ongoing portfolio expansion.

More than 20 hotels, including the first Spark property in Canada, opened during the third quarter, demonstrating the continued growth of its Spark by Hilton brand. In the third quarter, 27,500 more rooms were added to the development pipeline. As of September 30, 2024, Hilton has 3,525 hotels in its development pipeline, which accounted for 492,400 rooms in 120 countries and territories, including 28 where Hilton did not yet have any hotels. Furthermore, there were 280,700 rooms outside the United States, 235,400 rooms under construction, and rooms in the development pipeline.