MCLEAN, VA—Hilton reported “strong bottom-line results” for its fourth quarter and full year 2019.
“We delivered strong bottom-line results for the fourth quarter and full year,” said Christopher J. Nassetta, president/CEO, Hilton. “Adjusted EBITDA and diluted EPS, adjusted for special items, exceeded the high end of our guidance as a result of our resilient business model and strong net unit growth. We carry positive momentum into 2020 with expectations of continued strong net unit growth. We are also thrilled with the introduction of Tempo by Hilton, our new lifestyle brand that will provide another platform for growth in the future.”
For the fourth quarter, system-wide comparable RevPAR decreased 1% as a result of a decrease in ADR. For 2019, system-wide comparable RevPAR grew 0.8% primarily driven by an increase in occupancy. Management and franchise fee revenues increased 5% and 8% during the three months and year ended Dec. 31, 2019, respectively, primarily as a result of the addition of new properties to Hilton’s management and franchise segment and an increase in licensing and other fees. Additionally, management and franchise fees increased for 2019, as a result of an increase in RevPAR at comparable managed and franchised hotels.
Net income and Adjusted EBITDA were $176 million and $586 million, respectively, for the fourth quarter of 2019, compared to $225 million and $544 million, respectively, for the fourth quarter of 2018.
Net income and Adjusted EBITDA were $886 million and $2.3 billion, respectively, for the year, compared to $769 million and $2.1 billion, respectively, for 2018. During 2019, the company completed the sale of the Hilton Odawara Resort & Spa and subsequently entered into a 30-year management contract with the purchaser of the hotel. As a result of the sale, the company recognized a pre-tax gain of $81 million.
In the fourth quarter of 2019, Hilton opened 143 new hotels totaling 18,500 rooms and achieved net unit growth of nearly 17,000 rooms. During the quarter, Hilton added several notable properties to its system, including the Conrad Hangzhou Tonglu, China and the Zemi Beach House, LXR in Anguilla. For 2019, Hilton opened nearly 470 new hotels totaling 65,100 rooms and achieved net unit growth of 58,300 rooms, which was a 6.6% increase from 2018. During the year, Hilton expanded to six new countries and territories and opened its 6,000th hotel.
As of December 31, 2019, Hilton’s development pipeline totaled more than 2,570 hotels consisting of more than 387,000 rooms throughout 116 countries and territories, including 35 countries and territories where Hilton does not currently have any open hotels. Additionally, of the rooms in the development pipeline, 215,000 rooms were located outside the U.S., and 193,000 rooms were under construction.