Hilton starting the year on a high
With many big name hotel brands feeling the stress of market saturation, competition from similar big hitting brands and guest diversion from the traditional hotel model, Hilton Hotels is no doubt breathing a sigh of relief after the year’s first quarter. The group’s financial report showed that the group is still a big hitter in the hospitality industry, with their earnings exceeding expectations for the start of the year. Christopher J. Nassetta, President Chief Executive Officer of Hilton, said, “We are thrilled with the strong start to the year, reporting first quarter results that exceeded the high end of our guidance for system-wide RevPAR, Adjusted EBITDA and diluted EPS, adjusted for special items. As a result of our strong performance and positive outlook for the remainder of the year, we are raising guidance for the full year. We also continue to deliver on our capital return strategy through share repurchases and dividends, returning more than $1.3 billion so far this year.”
Europe and Asia return particularly strong performance
The Asian and European markets were big contributors to Hilton’s success from January to April. Hilton hotels in Europe and the Asia Pacific regions returned particularly strong numbers, and one of the biggest areas where growth was recorded was in China. Chinese tourism has been on the up in recent years, and Hilton anticipates full-year RevPAR growth in excess of 10% in the region. The group’s Hampton by Hilton brand has been a focus of their growth in China, and this planned expansion is happening in collaboration with Plateno, who Hilton is in talks with to further expand the scope of their working relationship. Speaking of Hilton’s partnership with Plateno, Nassetta said, “They’re doing a wonderful job in terms of what the product is and delivering service and helping build our network out in China. We’ve had great success, and we’re very optimistic with where things are going with Plateno and Jinjiang International.”
2018 and beyond
In the first quarter of 2018, Hilton opened 75 hotels totaling 10,600 rooms, a 7 percent increase from the same period in 2017, and achieved net unit growth of 7,100 rooms. As of March 31, 2018, Hilton’s development pipeline totaled more than 2,340 hotels consisting of approximately 355,000 rooms throughout 106 countries and territories, including 38 countries and territories where Hilton does not currently have any open hotels. These numbers are sure to be added to in 2019, given the optimism that 2018’s first quarter results have given the group.
Let’s take a look at a few projects currently underway by Hilton Worldwide:
Originally commissioned by King Edward VII in memory of Queen Victoria, the property was first designed by Sir Aston Webb …[READ MORE]
Upon completion of the refurbishment, the Astor Hotel will feature stylish guest rooms and suites, set over six storeys and housed within a traditional, 107 year old building. …[READ MORE]
More information on Hilton Worldwide hotel projects can be found in the
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