Hilton Worldwide achieved a sharp rise in profits in the third quarter of 2015.
Releasing its three-month figures this week, the US-based hotel group posted a net profit of US$279 million for the quarter ending 30 September 2015, up 52.5% year-on-year. This was driven by a 9.5% increase in revenues, to US$2.9 billion, and the company’s operating profit jumped 49.0% to US$664m.
“We had yet another strong quarter, with adjusted EDBITA (+13% to US$758m) exceeding the high end of guidance,” said Hilton’s president & CEO, Christopher J. Nassetta. “The fundamentals of our business remain strong, particularly in the United States, where demand growth continues to exceed historically low levels of supply.”
Hilton’s global revPAR (revenue per available room) increased 5.8% to US$114.15 in the third quarter, driven by the Asia Pacific region, which jumped 10.2%. Global occupancy levels edged up 1.2 percentage points to 79.9% while average daily rates (ADR) rose 4.2% to US$142.90.
By brand, Conrad Hotels & Resorts saw the strongest revPAR growth (+9.5%), followed by Waldorf Astoria (+8.8%) and Hilton Hotels & Resorts (+6.5%).
Hilton opened 91 hotels in Q3 2015, with a net inventory growth of 13,000 rooms. The company’s global portfolio now stands at 4,525 hotels comprising 745,074 rooms, and it also has a pipeline of 1,555 hotels with 260,000 rooms.
For the first nine months of 2015, Hilton’s net profit reached US$590m, up 14.6% year-on-year, while its global revPAR has increased 5.9% to US$108.80.
Looking ahead, the company said it expects full-year revPAR growth of 4-6%, followed by similar growth in 2016.