Hilton Worldwide Reports Second Quarter 2014 Results
Friday August 1st, 2014 - 9:24AM XB
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MCLEAN, VA—Hilton Worldwide posted its second quarter 2014 results, indicating a 6.7% increase in system-wide RevPAR. As a result, the company plans to increase its Adjusted EBITDA and EPS outlook for the year.
Hilton also continued to increase its global presence with more than 8,000 new rooms opening during the second quarter. Christopher J. Nassetta, president & CEO of Hilton Worldwide, said, “This quarter, we further expanded and diversified our brand portfolio with the launch of our newest brand, Curio - A Collection by Hilton. We also remain #1 in rooms under construction in every major region of the world, with an 18% share of all rooms under construction globally, totaling 542 hotels and 106,000 rooms.”
Additionally, Hilton Worldwide is rolling out technological innovation to better the guest. “For the first time in the industry, our guests can check in, using their Hilton HHonors account on a mobile device, tablet or computer, and choose their exact room from digital floor plans before arriving at their hotel,” said Nassetta.
This capability will be available at U.S.-based Hilton Worldwide properties across six brands by the end of the summer, and by the end of 2014, guests at more than 4,000 properties in 80-plus countries can experience this new technology. “Moving forward, we will give guests even more choice and control with the ability to use their smart phones as a room key and are pleased to announce that by the end of 2015, all U.S. hotels across four brands will have this capability, with the entire global portfolio of brands following soon after,” said Nassetta.
Revenues from the ownership segment were $1,126 million in the second quarter of 2014, an increase of 4% from the same period in 2013. Ownership segment Adjusted EBITDA for the second quarter of 2014 was $291 million. Ownership segment Adjusted EBITDA increased 8% from the same period in 2013 and Adjusted EBITDA margin increased approximately 100 basis points.
RevPAR at comparable hotels in the ownership segment increased 4.8% on a currency neutral basis in the second quarter of 2014 compared to the same period in 2013, led by an increase in ADR of 4.6% at comparable ownership segment hotels in the U.S. Outside of the U.S., RevPAR at comparable ownership segment hotels increased by 2.4% on a currency neutral basis.
Tags: Hilton Worldwide • Christopher J. Nassetta • RevPAR • Hospitality • Brands • Quarterly Results •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.