Hilton sees RevPAR jump by 6.8% in Q3
Over the period, Hilton opened 107 new hotels totaling 15,700 rooms, and achieved net unit growth of 14,300 rooms
Hilton has reported that system-wide comparable RevPAR rose by 6.8% in its third quarter against the prior year, thanks to increases in both occupancy and ADR over the period.
In the three months ended 30 September, 2023, management and franchise fee revenues rose by 12.3% against the prior year, and net income and adjusted EBITDA hit $379m (£313m) and $834m (£688m), respectively.
For comparison with pre-pandemic results, system-wide comparable RevPAR for the quarter increased 11.4% compared with the same period in 2019, and management and franchise fee revenues increased 36.4%.
For the nine months ended 30 September, system-wide comparable RevPAR increased 14.9%, and management and franchise fee revenues increased 18.4%.
Over the period, Hilton opened 107 new hotels totaling 15,700 rooms, and achieved net unit growth of 14,300 rooms.
The group also had two “noteworthy” brand debuts, celebrating the first Spark by Hilton which opened in Mystic, Connecticut, and the first Tempo by Hilton, which opened in New York Times Square.
According to the group, this “momentum of firsts” has continued into October, with the announcement of the Waldorf Astoria Residences Pompano Beach, the brand’s first standalone residential project.
In addition, Hilton added 35,500 rooms to the development pipeline during the third quarter, and, as of 30 September, its development pipeline totals approximately 3,190 hotels representing 457,300 rooms throughout 119 countries and territories.
Christopher J. Nassetta, president and CEO of Hilton, said: “We continued to see strong results during the third quarter, exceeding our expectations for system-wide RevPAR growth, with growth across all customer segments. We also continue to leverage our industry-leading portfolio of brands to drive further growth of our global network.
“We believe we have hit an inflection point and expect a meaningful uptick in openings in the fourth quarter with continued positive momentum into next year. With a record number of approvals year-to-date driving the largest pipeline in our history, we are confident in our ability to accelerate net unit growth to 5.5 percent to 6.0 percent next year.”
