Hilton Worldwide has reported its third quarter 2015 results with Christopher J. Nassetta, President & Chief Executive Officer of Hilton Worldwide, saying:
“We had yet another strong quarter with Adjusted EBITDA exceeding the high end of guidance. The fundamentals of our business remain strong, particularly in the United States, where demand growth continues to exceed historically low levels of supply. New supply disproportionately favors our brands given the leading economic returns they deliver for hotel owners, resulting in accelerating net unit growth for our system.”
Highlights
- EPS, adjusted for special items, for the third quarter was $0.23, a 28 percent increase from the same period in 2014; without adjustments, EPS was $0.28
- Net income attributable to Hilton stockholders for the third quarter was $279 million, an increase of $96 million from the same period in 2014
- Adjusted EBITDA for the third quarter increased 13 percent from the same period in 2014 to $758 million, and Adjusted EBITDA margin increased 290 basis points
- System-wide comparable RevPAR increased 5.8 percent for the third quarter on a currency neutral basis from the same period in 2014
- Management and franchise fees for the third quarter increased 14 percent from the same period in 2014 to $438 million
- Net unit growth was 13,000 rooms in the third quarter, a 16 percent increase from the same period in 2014
- Approved 26,000 new rooms for development during the third quarter, a 29 percent increase from the same period in 2014, growing Hilton’s development pipeline to 1,555 hotels, consisting of 260,000 rooms
- Reduced long-term debt by $350 million during the third quarter; additional $100 million prepayment on senior secured loan facility borrowings in October 2015, for a total reduction of $850 million year-to-date through October 2015
- Increased outlook for full year Adjusted EBITDA to between $2,840 million and $2,870 million, an increase of
- $10 million at the midpoint
- Full year 2016 RevPAR expected to increase between 4.0 percent and 6.0 percent and net unit growth expected to be 45,000 rooms to 50,000 rooms
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