Hilton Worldwide Holdings, American multinational hospitality company based in Tysons - Virginia - U.S.,founded in 1919 that operates, manages and franchises a large portfolio of hotels, resorts and timeshare properties, one of the largest hotel chains in the world present with its 22 brands worldwide reported slower-than-expected growth in RevPAR, revenue per available room in the third quarter of the current year even though strong group bookings and the recovery in business travel helped to offset the moderation in demand for leisure.
Hilton's Q3 RevPar rose 1.4% year-over-year but was below the company's guidance and Hilton CEO Christopher Nassetta attributed the situation to a slower launch pad in September after Labor Day due to weather impacts, calendar changes and ongoing labor disputes in the United States of America.
The hospitality union Unite Here, movement of people committed to changing lives in the hospitality industry by making sure jobs are safe, respected and provide enough to live on has organized rotating strikes in several US cities that have affected with an impact on the hotels of the portfolios of the Hilton, Hyatt and Marriott International and starting from October 20th 2024, strikes remained in place at Hilton properties in Boston, Honolulu and San Francisco.
Despite these work challenges, Hilton has seen some pretty encouraging trends, especially in business travel, with RevPar in this growing segment, with a 2% increase among large corporate customers and small and medium-sized businesses.
Hilton CEO Christopher Nassetta commented that we will continue to see an increase in transit and that in 2025 we will probably surpass the previous peaks of 2019 in terms of the level of demand.
As for the group's RevPAR, it showed even stronger performance, seeing an increase of 5%, driven in particular by corporate and social meetings and events, with the CEO of Hilton pointing out that corporate meetings and conventions continue to grow as a percentage of the mix, leading to longer booking windows.
Leisure travel continues to show signs of normalization, with leisure RevPAR down modestly from the peaks seen in the post-pandemic period during the quarter, although Hilton's CEO emphasized that leisure is still surpassing historical levels.
The regional performance was mixed with the RevPAR of the United States of America which had an increase of 1% supported by the group's activities while the region of the Americas outside the geographical area of the United States recorded a growth of 4% mainly driven by the remarkable performance of urban markets, particularly in Mexico.
As far as Europe is concerned, it has recorded a solid growth in RevPAR of 7%, benefiting from major events such as the Olympic Games held in Paris, France, and the European Football Championships held in Germany.
In Africa and the Middle East, RevPAR increased by 3% while in the Asia-Pacific region it decreased by 3%.
In China, RevPAR fell 9% in the quarter, and Hilton CFO Kevin Jakobs pointed to the negative impact of challenging domestic travel comparisons year-over-year, typhoon-related disruptions and limited inbound international travel.
Hilton's Q3 occupancy was 75.3% for the quarter with an increase of 0.3% while ADR, average daily rate increased by 1% to $161.8%.
Hilton's net income was $344 million, down from $379 million in the same period in 2023, while the hotel group's revenue for the third quarter of 2024 is $2.87 billion, up from $2.67 billion in the same period last year, an increase of 7.3%.
Link - https://www.travelweekly.com/Travel-News/Hotel-News/Hilton-earnings-Q3-2024
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