MCLEAN, VA – April 26, 2023
Hilton Worldwide Holdings Inc. today reported its first quarter 2023 results. Highlights include:
- Diluted EPS was $0.77 for the first quarter, and diluted EPS, adjusted for special items, was $1.24
- Net income was $209 million for the first quarter
- Adjusted EBITDA was $641 million for the first quarter
- System-wide comparable RevPAR increased 30.0 percent, on a currency-neutral basis, for the first quarter compared to the same period in 2022
- System-wide comparable RevPAR increased 8.0 percent, on a currency-neutral basis, for the first quarter compared to the same period in 2019
- Approved 24,900 new rooms for development during the first quarter, bringing Hilton’s development pipeline to 428,100 rooms as of March 31, 2023
- Added 9,200 rooms to Hilton’s system in the first quarter, resulting in 5,300 net additional rooms in Hilton’s system during the period
- Repurchased 3.2 million shares of Hilton common stock during the first quarter, bringing total capital return, including dividends, to $487 million for the quarter and more than $602 million year to date through April
- Full-year 2023 system-wide RevPAR is expected to increase between 8 percent and 11 percent on a comparable and currency-neutral basis compared to 2022; full-year net income is projected to be between $1,331 million and $1,385 million; full-year Adjusted EBITDA is projected to be between $2,875 million and $2,950 million
- Full-year 2023 capital return is projected to be between $1.8 billion and $2.2 billion
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, “We carried strong momentum into 2023, exceeding the high end of our guidance for system-wide RevPAR, driving strong bottom-line results and delivering meaningful free cash flow available for return to our shareholders. As a result of our strong performance and positive outlook, we are raising our Adjusted EBITDA guidance for the full year.”
For the three months ended March 31, 2023, system-wide comparable RevPAR increased 30.0 percent compared to the same period in 2022, due to increases in both occupancy and ADR and management and franchise fee revenues increased 30.1 percent compared to the same period in 2022. Compared to pre-pandemic results, system-wide comparable RevPAR for the three months ended March 31, 2023, increased 8.0 percent compared to the same period in 2019, and management and franchise fee revenues increased 26.3 percent from the same period in 2019.
For the three months ended March 31, 2023, diluted EPS was $0.77, and diluted EPS, adjusted for special items, was $1.24 compared to $0.75 and $0.71, respectively, for the three months ended March 31, 2022. Net income and Adjusted EBITDA were $209 million and $641 million, respectively, for the three months ended March 31, 2023, compared to $211 million and $448 million, for the three months ended March 31, 2022
Development
In the first quarter of 2023, Hilton opened 64 new hotels totaling 9,200 rooms, and achieved net unit growth of 5,300 rooms.
Additionally, Hilton started construction on over 19,000 hotel rooms during the first quarter, continuing the positive momentum from the end of 2022, particularly in China. Further, Hilton continued to achieve development milestones during the first quarter, opening the 100th Tapestry Collection by Hilton, as well as its 500th hotel in China.
As of March 31, 2023, Hilton’s development pipeline totaled approximately 2,930 hotels representing 428,100 rooms throughout 116 countries and territories, including 30 countries and territories where Hilton did not have any existing hotels. Additionally, of the rooms in the development pipeline, 215,700 of the rooms were under construction and 246,200 of the rooms were located outside of the U.S. In April, Hilton announced a notable addition to its development pipeline, the Waldorf Astoria Jaipur, which will
mark the debut of the Waldorf Astoria Hotels & Resorts brand in India.
