Hotel giant Hilton has recorded better-than-expected results for its second quarter, as the global recovery in travel continued to gain momentum.
Hilton made a net profit of $367 million for the three months ending on 30 June, up from a profit of $128 million in Q2 2021, as total revenue rose by 68.5 per cent from $1.33 billion to $2.24 billion year-on-year.
The US-based company said revpar (revenue per available room) increased by 54 per cent in the quarter, compared to a year ago, as Hilton benefited from rises in both occupancy levels and average daily rate (ADR). Although revpar was still 2.1 per cent lower than during the comparable period in 2019.
Hilton’s European properties recorded the second highest regional occupancy level of 72 per cent during the second quarter (up by 41 percentage points on 2021), ranking only behind the US where 74.3 per cent of rooms were filled.
Europe had the third highest regional ADR at $151.58 during the quarter, putting it just behind the Middle East ($152.94) and the US ($162.16). Hilton’s average daily rate in Europe has increased by 66 per cent since the second quarter of 2021, which was the largest regional year-on-year rise.
Christopher Nassetta, president and CEO of Hilton, said the second quarter results were at the “high end of our guidance”, leading the company to increase its earnings forecast for 2022 to a net profit of between $1.15 billion and $1.22 billion for the full year.
“Given our strong results in the quarter, coupled with our confidence in continued recovery throughout the year, we are raising our full-year guidance, including our outlook for capital return,” added Nassetta.
“With a capital-light business model, a strong portfolio of brands and dynamic, industry-leading platforms, we are well-positioned for the opportunities that lie ahead.”
Hilton is continuing its growth around the world with 91 new hotels opening during the April-June quarter, adding a total of 14,400 rooms. New properties included the Lost Property St Paul's London, which is part of the Curio Collection.
There are also nearly 2,800 hotels in Hilton’s development pipeline, which would add 413,000 rooms across 114 countries and territories. More than 195,000 of these rooms are currently under construction with more than half of total new rooms (246,000) located outside the US.