Advertisement

UPDATE 2-Hilton tops profit estimates on strong international growth

From Reuters - February 14, 2018

(Reuters) - Hilton Worldwide Holdings Inc (HLT.N) reported quarterly profit and revenue that beat analysts estimates on Wednesday, as Asia Pacific led stronger growth in its operations outside the United States.

Shares of Hilton, owner of the Waldorf Astoria, Conrad and Double Tree hotel chains, rose 3.4 percent to $86 in premarket trading.

The hotel industry globally has been benefiting from an uptick in demand, especially from corporate travelers, as a strengthening global economy boosts sentiment and spending.

Hilton, which gets more than three-quarters of its revenue from the United States, said overall revenue per available room (RevPAR) rose 3.8 percent in the fourth quarter, as more people booked rooms at higher prices.

RevPAR is a key metric to measure a hotels financial health and is calculated by multiplying the average daily room rate by the occupancy rate.

Hiltons strongest RevPAR growth was a 7.6 percent increase in the Asia Pacific. With a rise of 3.2 percent, the U.S. RevPAR growth was the slowest among Hiltons five geographies.

Advertisement

Continue reading at Reuters »