Hilton Worldwide Holdings Inc. (“Hilton” or the “Company”) (NYSE: HLT) recently reported its third quarter 2023 results. Highlights include:
Diluted EPS was $1.44 for the third quarter, and diluted EPS, adjusted for special items, was $1.67
Net income was $379 million for the third quarter
Adjusted EBITDA was $834 million for the third quarter
System-wide comparable RevPAR increased 6.8 percent, on a currency neutral basis, for the third quarter compared to the same period in 2022
System-wide comparable RevPAR increased 11.4 percent, on a currency neutral basis, for the third quarter compared to the same period in 2019
Approved 35,500 new rooms for development during the third quarter, bringing Hilton’s development pipeline to a record 457,300 rooms as of September 30, 2023, representing growth of 4 percent from June 30, 2023 and 10 percent from September 30, 2022
Added 15,700 rooms to Hilton’s system in the third quarter, resulting in 14,300 net additional rooms in Hilton’s system during the period
Repurchased 4.5 million shares of Hilton common stock during the third quarter, bringing total capital return, including dividends, to $723 million for the quarter and $1,938 million year to date through October
Expanded its brand portfolio of open hotels, with the openings of the first Spark by Hilton and the first Tempo by Hilton during the third quarter
Full year 2023 system-wide RevPAR is expected to increase between 12.0 percent and 12.5 percent on a comparable and currency neutral basis compared to 2022; full year net income is projected to be between $1,375 million and $1,389 million; full year Adjusted EBITDA is projected to be between $3,025 million and $3,045 million
Full year 2023 capital return is projected to be between $2.4 billion and $2.6 billion
Overview
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, “We continued to see strong results during the third quarter, exceeding our expectations for system-wide RevPAR growth, with growth across all customer segments. We also continue to leverage our industry-leading portfolio of brands to drive further growth of our global network. We believe we have hit an inflection point and expect a meaningful uptick in openings in the fourth quarter with continued positive momentum into next year. With a record number of approvals year-to-date driving the largest pipeline in our history, we are confident in our ability to accelerate net unit growth to 5.5 percent to 6.0 percent next year.”
Development
In the third quarter of 2023, Hilton opened 107 new hotels totaling 15,700 rooms and achieved net unit growth of 14,300 rooms. During the quarter, Hilton had two noteworthy brand debuts, celebrating the first Spark by Hilton which opened in Mystic, Connecticut, and the first Tempo by Hilton, which opened in New York Times Square. This momentum of firsts continued int October 2023 with the announcement of the Waldorf Astoria Residences Pompano Beach, the brand’s first standalone residential project.
Hilton added 35,500 rooms to the development pipeline during the third quarter, and, as of September 30, 2023, Hilton’s development pipeline totaled approximately 3,190 hotels representing 457,300 rooms throughout 119 countries and territories, including 29 countries and territories where Hilton did not have any existing hotels. Additionally, of the rooms in the development pipeline, 223,000 of the rooms were under construction and 257,200 of the rooms were located outside of the U.S.
Balance Sheet and Liquidity
As of September 30, 2023, Hilton had $8.8 billion of long-term debt outstanding, excluding the deduction for deferred financing costs and discount, with a weighted average interest rate of 4.57 percent. Excluding all finance lease liabilities and other debt of Hilton’s consolidated variable interest entities, Hilton had $8.6 billion of long-term debt outstanding with a weighted average interest rate of 4.56 percent and no scheduled maturities until May 2025. As of September 30, 2023, no debt amounts were outstanding under Hilton’s $2.0 billion senior secured revolving credit facility, which had an available borrowing capacity of $1,940 million after considering $60 million of outstanding letters of credit. Total cash and cash equivalents were $779 million as of September 30, 2023, including $81 million of restricted cash and cash equivalents.
Outlook
Share-based metrics in Hilton’s outlook include actual share repurchases through the third quarter, but do not include the effect of potential share repurchases thereafter.
Tempo by Hilton Times Square
Hilton Worldwide Holdings Inc. (“Hilton” or the “Company”) (NYSE: HLT) recently reported its third quarter 2023 results. Highlights include:
Overview
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, “We continued to see strong results during the third quarter, exceeding our expectations for system-wide RevPAR growth, with growth across all customer segments. We also continue to leverage our industry-leading portfolio of brands to drive further growth of our global network. We believe we have hit an inflection point and expect a meaningful uptick in openings in the fourth quarter with continued positive momentum into next year. With a record number of approvals year-to-date driving the largest pipeline in our history, we are confident in our ability to accelerate net unit growth to 5.5 percent to 6.0 percent next year.”
Development
In the third quarter of 2023, Hilton opened 107 new hotels totaling 15,700 rooms and achieved net unit growth of 14,300 rooms. During the quarter, Hilton had two noteworthy brand debuts, celebrating the first Spark by Hilton which opened in Mystic, Connecticut, and the first Tempo by Hilton, which opened in New York Times Square. This momentum of firsts continued int October 2023 with the announcement of the Waldorf Astoria Residences Pompano Beach, the brand’s first standalone residential project.
Hilton added 35,500 rooms to the development pipeline during the third quarter, and, as of September 30, 2023, Hilton’s development pipeline totaled approximately 3,190 hotels representing 457,300 rooms throughout 119 countries and territories, including 29 countries and territories where Hilton did not have any existing hotels. Additionally, of the rooms in the development pipeline, 223,000 of the rooms were under construction and 257,200 of the rooms were located outside of the U.S.
Balance Sheet and Liquidity
As of September 30, 2023, Hilton had $8.8 billion of long-term debt outstanding, excluding the deduction for deferred financing costs and discount, with a weighted average interest rate of 4.57 percent. Excluding all finance lease liabilities and other debt of Hilton’s consolidated variable interest entities, Hilton had $8.6 billion of long-term debt outstanding with a weighted average interest rate of 4.56 percent and no scheduled maturities until May 2025. As of September 30, 2023, no debt amounts were
outstanding under Hilton’s $2.0 billion senior secured revolving credit facility, which had an available borrowing capacity of
$1,940 million after considering $60 million of outstanding letters of credit. Total cash and cash equivalents were $779 million as
of September 30, 2023, including $81 million of restricted cash and cash equivalents.
Outlook
Share-based metrics in Hilton’s outlook include actual share repurchases through the third quarter, but do not include the effect
of potential share repurchases thereafter.
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