Legacy Hotel Cascais, Curio Collection by Hilton | Photo Credit: @eduardo_ramos_fotos
MCLEAN, Virginia—Hilton Worldwide Holdings Inc. reported its second quarter 2024 results. Highlights include:
- Adjusted EBITDA is projected to be between $875 million and $890 million.
- Diluted EPS was $1.67 for the second quarter, and diluted EPS, adjusted for special items, was $1.91
- Net income was $422 million for the second quarter
- Adjusted EBITDA was $917 million for the second quarter
- System-wide comparable RevPAR increased 3.5 percent, on a currency neutral basis, for the second quarter compared to the same period in 2023
- Approved 62,700 new rooms for development during the second quarter, bringing our development pipeline to a record 508,300 rooms as of June 30, 2024, representing growth of 15 percent from June 30, 2023
- Added 22,400 rooms to our system in the second quarter, resulting in 18,000 net additional rooms for the second quarter, contributing to net unit growth of 6.2 percent from June 30, 2023
- Completed the acquisition of the Graduate Hotels brand in May, which expands the lifestyle portfolio
- Announced that nearly 400 hotels have agreed to join our system under our strategic partnership with Small Luxury Hotels of the World (SLH), beginning in July, adding an expected 18,000 rooms to our portfolio
- Repurchased 3.5 million shares of Hilton common stock during the second quarter; bringing total capital return, including dividends, to $761 million for the quarter and $1,774 million year to date through August
- Full year 2024 system-wide RevPAR is projected to increase between 2.0 percent and 3.0 percent on a comparable and currency neutral basis compared to 2023; full year net income is projected to be between $1,532 million and $1,555 million; full year Adjusted EBITDA is projected to be between $3,375 million and $3,405 million
- Full year 2024 capital return is projected to be approximately $3.0 billion
Overview
Christopher J. Nassetta, president and CEO of Hilton, said, “We are pleased to report a solid second quarter, with an increase in RevPAR of 3.5 percent, driven by growth in all segments, with particularly strong group performance. On the development side, we ended the quarter with a record development pipeline, up 15 percent from the prior year and up 8 percent sequentially from the first quarter, including strategic partner hotels. Looking forward to the rest of the year, with the continued growth of our existing brands, as well as the addition of our new brands and strategic partner hotels, we expect net unit growth of 7.0 percent to 7.5 percent for the full year.”
For the three months ended June 30, 2024, system-wide comparable RevPAR increased 3.5 percent compared to the same period in 2023 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 10.0 percent compared to the same period in 2023.
For the six months ended June 30,