Second-quarter systemwide Hilton Worldwide revenue per available room generated by large corporates increased 5 percent year over year, officials said during a Wednesday earnings call, adding that technology companies had a “notable recovery.”
Hilton’s overall second-quarter systemwide RevPAR increased 3.5 percent year over year, CEO Christopher Nassetta said, and transient RevPAR—including business and leisure—increased 2 percent for the same period.
“If you break apart the segments, group is still raging, business transient is still grinding up, not at a rapid pace, but still grinding up,” Nassetta said during the earnings call. “Both of those segments [are] maintaining great pricing power. And then leisure transient has been normalizing, because we’re just getting back to a more normal life, and it was at very elevated levels, particularly on weekends.”
Second-quarter systemwide group RevPAR increased 10 percent year over year, Nassetta said, “led by strong demand for corporate and social meetings and events, and booking windows continued to lengthen.”
Nassetta added that Hilton, as it adds group business to the books for the next few years, sees “no sense of slowing on demand and pricing.”
However, Hilton, like Hyatt Hotels Corp., Marriott International and Wyndham Hotels & Resorts, lowered its projected full-year RevPAR increase. Hilton now projects a 2 percent to 3 percent increase in 2024 RevPAR above 2023 levels, down from its prior projection of 2 percent to 4 percent.
“We tempered the high end of our expectations versus prior guidance due to softer trends in certain international markets and normalizing leisure growth more broadly,” Nassetta said. “With continued strength in group and steady recovery in business transient, we expect higher-end chain scales to continue to outperform.”
Hilton Q2 Metrics
Hilton’s systemwide second-quarter occupancy increased 1.3 percentage points year over year to 75.3 percent, and its average daily rate increased 1.7 percent to $163.70. Systemwide second-quarter RevPAR was $123.30.
In the United States, second-quarter occupancy increased 1.1 percentage points year over year to 76.8 percent, while ADR increased 1.4 percent to $172.36 and RevPAR rose 2.9 percent to $132.33.
Second-quarter revenue increased about 11 percent year over year to $2.95 billion, and net income rose to $422 million from $413 million one year ago.
Hilton also projects a 2 percent to 3 percent increase in third-quarter systemwide RevPAR year over year.
Hilton’s development pipeline at the end of the second quarter totaled 3,870 hotels representing 508,300 rooms, up 15 percent year over year.
