Hilton Q2 Earnings Up
by Jessica MontevagoHilton Worldwide Holding Inc., owner of the Waldorf-Astoria and Hampton Inn brands, reported a $239 million profit Wednesday for the second-quarter of 2016, up 48% in the latest period.
The Virginia-based company earned 25 cents a share. Hilton saw its revenue increase by 4.4%, to $3.05 billion, falling below Wall Street’s estimate of $3.06 billion.
Revenue per available room (RevPAR) — an industry metric calculated by multiplying a hotel’s average daily room rate by its occupancy rate — rose 2.9% this quarter. However, Hilton lowered its 2016 RevPAR earnings projections citing slow business travel and international instability. It now expects RevPAR to increase by 2-4%, down from 3-5%.
Chief financial officer Kevin Jacobs said on a conference call demand overseas could be affected by Britain’s vote to leave the European Union and “other recent events” in Europe.
The company also said its planned spin-offs of Park Hotels & Resorts and Hilton Grand Vacations, its real estate and timeshare businesses, is expected to be completed by the end of this year.
Hilton opened 76 hotels in the second quarter. It operates more than 4,700 hotels in 104 countries.
