Hilton Reports Development Surge in Q3 Report
Hilton Worldwide opened 91 hotels in the third quarter, growing its net room count by 13,000 and making it the largest global hotel company as of the end of September, the hotel giant reported in its third-quarter earnings release. More than 25 percent of that room gain came from conversions from other brands. According to lodging-data provider STR, Hilton has 735,571 rooms globally. The InterContinental Hotel Group is a close second with 731,343.
Hilton likewise has the largest pipeline, according to numbers from STR, with 227,410 rooms on tap. (Marriott International currently is second, with 204,981 rooms in the pipeline.) Hilton added that those rooms represent 1,555 hotels, across 85 countries and territories - 33 of them new to Hilton Worldwide. More than half of the pipeline (53 percent of the rooms) is located outside the U.S., and more than half is currently under construction. About 26,000 new rooms were approved for development during the third quarter, which is a 29 percent increase over Q3 in 2014.
Hilton reported a strong third-quarter performance overall, with adjusted earnings before interest, taxes, depreciation and amortization up by 13 percent year-over-year. "The fundamentals of our business remain strong, particularly in the United States, where demand growth continues to exceed historically low levels of supply," noted president and CEO Christopher J. Nassetta in the earnings release. Systemwide revenue per available room was up by 5.8 percent year-over-year; Hilton projects revPAR will be up between 5 and 6.5 percent for the full year.