Hilton reports third quarter net income of $ 240 million

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Hilton, for the third quarter ended Sept. 30, reported net income of $ 240 million. The Company’s results were supported by continued strength in leisure travel, as well as a slight increase in business travel.

Highlights of the third quarter:

  • Diluted EPS was $ 0.86 and diluted EPS, adjusted for special items, was $ 0.78
  • Adjusted EBITDA was $ 519 million
  • System-wide comparable RevPAR increased 98.7% on a currency neutral basis compared to same period in 2020
  • System-wide comparable RevPAR decreased by 18.8% on a currency neutral basis compared to same period in 2019
  • Approved 23,600 new rooms for development, bringing Hilton’s development pipeline to 404,000 rooms as of September 30
  • Addition of 14,700 rooms to the Hilton system, contributing to 11,200 net additional rooms during the period and annualized net unit growth of approximately 6.6% as of September 30, 2020
  • Net unit growth for the full year 2021 is expected to be between 5.0% and 5.5%.

“We are pleased with our third quarter results, which continue to reflect the recovery from the negative impact of the COVID-19 pandemic,” said Christopher J. Nassetta, president and CEO of Hilton. “Leisure travel remained strong and business travel continued to recover during the quarter. We continue to expand our global presence through the strength of our portfolio of industry-leading brands. Overall, we remain confident in a strong recovery in global tourism in the months and years to come, as well as in our positioning within the industry, which will allow us to continue to differentiate ourselves and offer outstanding performance to all of our stakeholders. “

During the three and nine months ended September 30, the COVID-19 pandemic continued to negatively impact Hilton’s business and hotel operating statistics; however, Hilton saw a significant improvement in its results compared to the same periods in 2020, due to an upward trend in travel and tourism. Due to the pandemic, some hotels have suspended operations at various times throughout 2020, but the majority of these hotels have been reopened by 2021. In line with the resumption, although some hotels have suspended operations during of the nine months ended September 30, reopening far exceeded suspensions. As such, operations of only about 335 hotels, or 5%, of Hilton’s system-wide properties as of September 30, which were primarily located in the United States and Europe, have been suspended for a period of time. during the nine months ended September. 30, compared to about 1,270 hotels in the nine months ended September 30, 2020. As of September 30, all but 88, or about 1%, of Hilton hotels were open and Hilton expects almost all of its hotels to be open. hotels across the system will be open by the end of the year.

For the three and nine months ended September 30, the system-wide comparable RevPAR increased 98.7% and 47.6%, respectively, compared to the same periods in 2020, due to increases at the times the occupancy rate and ADR, and for the quarter ended September 30. was down 18.8% from the quarter ended September 30, 2019. Commission revenue increased 93% and 49%, respectively, compared to the same periods in 2020.

For the three months ended September 30, diluted EPS was $ 0.86 and diluted EPS, adjusted for special items, was $ 0.78. compared to – $ 0.29 and $ 0.06, respectively, for the quarter ended September 30, 2020. Net income and Adjusted EBITDA were $ 240 million and $ 519 million for the third quarter, respectively, compared to a loss of $ 81 million and a gain of $ 224 million, respectively, for the same period in 2020.

For the nine months ended September 30, diluted EPS was $ 0.94 and diluted EPS, adjusted for special items, was $ 1.36, compared to $ -1.77 and $ 0.20, respectively. for the same period in 2020. Net income and Adjusted EBITDA were $ 259 million and $ 1,117. billion, respectively, for the nine months ended September 30, compared to a loss of $ 495 million and a gain of $ 638 million, respectively, for the same period in 2020.

Development
In the third quarter of 2021, Hilton opened 96 new hotels totaling approximately 14,700 rooms and achieved net unit growth of 11,200 rooms. During the quarter, Hilton opened three new hotels under LXR Hotels & Resorts, including the brand’s first property in the Asia Pacific region. Additionally, the company celebrated the opening of the 500th hotel under its Home2 Suites by Hilton brand just 10 years after its introduction, making it one of the fastest growing hotel brands in history. industry.

As of September 30, Hilton’s development pipeline totaled more than 2,620 hotels representing 404,000 rooms in 114 countries and territories, including 27 countries and territories where Hilton currently has no existing hotels. In addition, of the rooms under development, 249,000 rooms were located outside of the United States and 204,000 rooms were under construction.

Balance sheet and liquidity
As of September 30, Hilton had long-term debt outstanding of $ 8.9 billion, excluding deferred financing fees and discounts, with a weighted average interest rate of 3.99%. Excluding finance lease debt and other debt of Hilton’s consolidated variable interest entities, Hilton had $ 8.6 billion in long-term debt with a weighted average interest rate of 3.95% and no due date until 2025. No amount was outstanding under Hilton’s $ 1.75 billion senior guarantee. revolving credit facility at September 30, which had available borrowing capacity of $ 1.690 billion after considering $ 60 million in letters of credit outstanding. Total cash and cash equivalents was $ 1.387 billion as at September 30, of which $ 99 million was restricted cash and cash equivalents.


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