Hilton marks ‘better than expected’ performance as travel demand returns
Hotel operator Hilton has reaped the rewards of an international travel resurgence, posting an adjusted EBITDA of $448m for the first quarter.
Demand dipped earlier in the year as a surge in Omicron Covid cases prevented many from travelling abroad. However, the easing of Covid restrictions has seen demand for travel flooding back.
Hilton Worldwide Holdings reported yesterday that its comparable revenue per available room (RevPAR) increased 80.5 per cent for the reported quarter.
The company resumed share repurchases in March and declared a quarterly cash dividend in May this year.
The buoyant results mean that the hotel operator has been able to resume share repurchases and has declared a quarterly cash dividend.
Chief executive officer Christopher Nassetta said the quarterly results had enabled a capital return to shareholders “earlier than we had anticipated,”
Hilton posted a revenue of $1.72bn for the quarter, compared with $874m a year earlier.
Net income attributable to stockholders was $212m, or 75 cents per share, for the quarter versus a loss of $108m, or 39 cents per share, for the comparable period the previous year.
For the full-year, the hotel operator said its adjusted EBITDA was projected to be between $2.2bn and $2.3bn.
“We are happy to report solid first quarter results, with all segments driving better than expected top line performance in March,” Nassetta added.
“Our team members worked hard to effectively navigate the pandemic and position the company for the future, and we are excited for the growth opportunities that lie ahead.”