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Hotel Brands

Hilton income drops 43% amid Covid disruption

RevPAR for the full year was up 60.4% year-on-year, although it dropped 30% compared to pre-Covid levels

Hilton Worldwide Holdings Inc. has reported that its net income fell 43% year-on-year from $720m (£529.32m) to $407m (£299.21m) in the full year ending 31 December 2021 (FY21). Its fourth quarter (Q4) net income also fell 34% year-on-year from $225m (£165.41m) to $148m (£108.8m) in the three months ending 31 December 2021.

Meanwhile, adjusted EBITDA surged 93% for the full year to $1.62bn (£1.19bn), compared to $842m, (£619.01m) in FY20. Additionally, adjusted EBITDA was $512m (£376.4m) for Q4, up year-on-year from $204m (£149.97m).

System-wide comparable RevPAR also increased by 104.2% and 60.4% respectively, on a currency neutral basis, for Q4 and FY21, compared to the same periods in 2020. However, compared to pre-Covid levels, system-wide comparable RevPAR was down 13.5% and 30% respectively for Q4 and FY21 on a currency neutral basis.

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Hilton said the Covid-19 pandemic continued to negatively impact its business and hotel operating statistics in both Q4 and the full year, however, the company experienced improvement in its results compared to 2020 which it said is attributable to increased travel and tourism.

Overall, Hilton added 16,100 rooms in Q4, contributing to 55,100 net additional rooms in Hilton’s system for the full year, which represented 5.6% net unit growth from December 31 2020. For the full year in 2022, net unit growth is expected to be approximately 5%.

Christopher J. Nassetta, president and chief executive officer of Hilton, said: “We were pleased to see continued recovery throughout 2021, with our fourth quarter showing strong results versus 2019.

“Although new variants of the virus have had some short-term impact, we are optimistic about the acceleration of recovery across all segments during 2022. We remain confident in the future of our business and our ability to continue to drive strong net unit growth and free cash flow, fueled by higher margins.”

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