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Hilton Worldwide Holdings Inc. recently released its Q3 2023 earnings report. Hilton's Q3 earnings were $1.67 per share, exceeding expectations by a penny.
Revenue rose by 12.9% YoY, reaching $2.67 billion slightly outpacing expectations. System-wide comparable revenue per available room (RevPAR- Revenue per Available Room) increased by 6.8%. It grew by 11.4% compared to the same period in 2019. Management and franchise fees rose by 12.3% YoY. Hilton's management and franchise fee revenues rose by 36.4% and system-wide comparable RevPAR by 11.4%, respectively, compared to the same period in 2019, signaling a return to pre-pandemic levels. This growth was driven by increases in both occupancy and ADR (Average Daily Rate).
Looking ahead, Hilton issued its Q4 2023 guidance with earnings per share (EPS) projected to be between $1.51 and $1.56, in line with consensus. The company expects a 4.5 -5.5% YoY increase in system-wide comparable RevPAR on a currency-neutral basis.
For the full year, Hilton anticipates an EPS of $6.04-$6.09, in line with expectations. The company estimates a 12-12.5% increase in system-wide RevPAR compared to 2022 on a comparable and currency-neutral basis. Full-year net income is forecasted to be $1,375 million to $1,389 million, while Adjusted EBITDA is expected to range from $3,025 million to $3,045 million.
Hilton's CEO, Christopher J . Nassetta, stated, We continued to see strong results during the third quarter, exceeding our expectations for system-wide RevPAR growth, with growth across all customer segments. We also continue to leverage our industry-leading portfolio of brands to drive further growth of our global network. We believe we have hit an inflection point and expect a meaningful uptick in openings in the fourth quarter with continued positive momentum into next year.
Shares of HLT are up +1.14% following the news. The stock is battling resistance at the convergence of the 20- and 50-sma ($150-151) which looms as a key level for traders to monitor.
Hilton's strong Q3 performance and optimistic outlook for Q4 and FY23 demonstrate the company's resilience and continued growth in the hospitality industry. The company's ability to drive further growth through its industry-leading portfolio of brands and expanding global network is a positive sign for investors and the industry as a whole.
