Key facts
- Hilton's Q2 revenue rose 6.5% year-over-year to $3.34B.
- Q2 earnings per share were $2.29, surpassing the analyst consensus of $2.27.
- Systemwide comparable revenue per available room increased by nearly 4% in the second quarter.
- The company's Q3 earnings per share outlook of $2.28 to $2.34 missed the consensus estimate of $2.43.
- Hilton added over 24,000 rooms in Q2, a 50% increase from the prior quarter.
Hilton Worldwide Holdings reported second-quarter results that narrowly surpassed Wall Street's expectations, with revenue rising 6.5% year-over-year to $3.34 billion and earnings per share coming in at $2.29, just above the consensus estimates. Systemwide comparable revenue per available room (RevPAR) increased by nearly 4% due to higher occupancy and average daily rates.
Despite the slight beat on earnings, Hilton's outlook for the third quarter fell short of analyst projections. The company projected diluted earnings per share between $2.28 and $2.34, while analysts had estimated $2.43. Hilton anticipates continued RevPAR growth of around 4% for the third quarter.
Hilton's President and CEO, Christopher J. Nassetta, stated that the company delivered strong results driven by strengthening demand trends. However, the results were impacted by softer-than-expected demand related to major events like the FIFA World Cup and America's 250th anniversary, which did not deliver the predicted economic boosts for hoteliers.
The company also saw significant growth in its development pipeline, adding over 24,000 rooms in the second quarter, a 50% increase from the previous quarter, and approving nearly 43,000 more. The total development pipeline reached a record high of over 541,000 rooms. Hilton's net income increased by 9% to $482 million, and EBITDA rose to $1.05 billion. The company also returned $966 million in capital to shareholders through share repurchases and other means.