When one of the world's big hotel chains reports its results, it can be interesting to drill down beyond the headline figures.
Hilton Worldwide has published its second quarter results this week and they show a company in good shape. Earnings (adjusted EBITDA) for the second quarter ended 30 June stand at $806 million, up from $777 million in Q2 2015.
The company provides a breakdown of its performance across its brand portfolio and it is this that provides some useful information for travel buyers. The chart below shows the change in occupancy and average daily rate (ADR) for the first half of the financial year compared with the same period in 2015. The figures are prepared on a constant currency basis so exchange rate fluctuations may play a role.
Curio, the group's stable of mainly North American upscale and boutique hotels that includes the LondonHouse in Chicago, the Juniper in Cupertino and the Reichshof in Hamburg, has seen the biggest jump in average daily rate, up 7.6% year on year despite a 1.3 percentage point fall in occupancy.
The jump in rates at Curio and Waldorf Astoria might suggest that the luxury end of the market is buoyant. However, Conrad has seen the only drop in ADR despite occupancy remaining flat. Conrad's strong Asia Pacific bias may be the cause.
On a geographical basis, the growth in ADR has been strongest in the Middle East and Africa, up 9.2% in the first half of 2016 compared with the same period in 2015.
The results also show the group has the largest pipeline in the industry, according to STR. In its results, Hilton says it has 288,000 rooms at 1,822 hotels throughout 91 countries and territories in development, including 32 countries and territories where it does not currently have any open hotels. Asia Pacific is a strong focus.