Hilton reported its third quarter 2024 results on October 23.
Highlights include:
- Diluted EPS was $1.38 for the third quarter, and diluted EPS, adjusted for special items, was $1.92
- Net income was $344 million for the third quarter
- Adjusted EBITDA was $904 million for the third quarter
- System-wide comparable RevPAR increased 1.4 percent, on a currency neutral basis, for the third quarter compared to the same period in 2023
- Approved 27,500 new rooms for development during the third quarter, bringing our development pipeline to 492,400 rooms as of September 30, 2024, representing growth of 8 percent from Sept. 30, 2023
- Added a record 36,600 rooms to our system in the third quarter, resulting in 33,600 net additional rooms for the third quarter, contributing to a record net unit growth of 7.8 percent from Sept. 30, 2023
- Repurchased 3.3 million shares of Hilton common stock during the third quarter; bringing total capital return, including dividends, to $764 million for the quarter and $2,422 million year to date through October
- Issued $1.0 billion aggregate principal amount of 5.875 percent senior notes due 2033 in September 2024
- Full year 2024 system-wide RevPAR is projected to increase between 2.0 percent and 2.5 percent on a comparable and currency neutral basis compared to 2023; full year net income is projected to be between $1,405 million and $1,429 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
- Net unit growth for 2025 is expected to be between 6.0 percent and 7.0 percent
"We opened more hotel rooms than any other quarter in the history of our company and surpassed 8,000 hotels in our system," Hilton President and Chief Executive Officer Chris Nassetta said in the earnings call. "We also reached a milestone—200 million Hilton honors members in the quarter—as our award-winning program, industry-leading brands and exceptional service continued to increase guest loyalty."
Hilton achieved record net unit growth of 7.8 percent and opened over 500 hotels worldwide.
"We welcomed nearly 400 luxury properties through our exclusive agreement with Small Luxury Hotels of the World," Nassetta added. "We now have one of the largest luxury hotel portfolios in the industry."
Conversions accounted for 60 percent of openings in the quarter, driven by the addition of SLH properties and continued momentum from Spark. Hilton now has over 6,000 Spark rooms in supply just a year after the brand opened its first property.
Spark now has opened hotels in the U.S., the UK and Canada, and Hilton recently announced plans to open hotels in Germany and Austria before the end of the year. The brand's pipeline is three times larger than its existing supply, and Hilton expects "continued launches in international markets to further boost Spark's trajectory, positioning us well for future growth in the premium economy space."
