Sponsored Listings:
Hilton’s first-quarter revenue growth was at the high end of the company’s forecast and beat analyst estimates, as the hotel company benefited from better-than-expected group demand in the U.S. and growth in Europe.
Hilton’s first-quarter worldwide revenue per available room (RevPAR) advanced 3% from a year earlier, compared to its February forecast of 1% to 3%, the company said Tuesday. The company’s first-quarter revenue of $2.16 billion beat analysts’ estimates by $100 million.
Hilton’s Europe RevPAR rose 8.4% on stronger demand in London, Italy and Greece, while China and Japan demand drove Asia-Pacific RevPAR up 5.5%. U.S. RevPAR advanced 2.5%.
Among brands, RevPAR for Hilton’s Curio collection jumped 17% from a year earlier, while Home2Suites’ RevPAR advanced 7.7%. Those results more than offset the impact of lower demand growth at the Waldorf Astoria and Conrad luxury brands.
“If you look at systemwide group performance, frankly, it was a lot better than we thought it would be,” Hilton CEO Christopher Nassetta said on a conference call with analysts Tuesday morning.
Hilton opened the world’s first Tru by Hilton midscale hotel in Oklahoma City last month, and said its first-quarter global development pipeline widened 16% from a year earlier to more than 2,100 hotels in part because of its midscale brands.
Nassetta estimated that the company would open 85 Tru properties by the end of next year and said the first Tapestry collection hotel will open by the end of next month. Overall, Hilton will increase its room inventory by about 6.5% this year, or by as many as 55,000 rooms.
“We think we’re one of the very limited people who have the network effect,” added Nassetta, referring to the benefits of offering guests a wide range of brands. “There are no dogs in the bunch.”
Hilton continues to attract more direct bookings via its “Stop Clicking Around” campaign. First-quarter direct web bookings accounted for about 30% of Hilton’s total bookings, up from about 28% a year ago, according to Nassetta.
Hilton’s first-quarter net income fell 76% from a year earlier to $75 million because of a year-earlier income-tax benefit and the year-earlier inclusion of earnings from its REIT and vacation-rental spinoffs.
Sоurсе: travelweekly.com
