Hilton Hotels Corp.’s third-quarter business transient revenue per available room exceeded 2019 levels for the first time since the pandemic, the company announced Wednesday.
“Business transient RevPAR reached 2019 levels with notable acceleration in large corporate business,” Hilton president and CEO Christopher Nassetta said Wednesday during a quarterly earnings call. “Our top 20 business accounts are now just three points shy of 2019 levels.”
Nassetta added “group RevPAR reached roughly 93 percent of prior peak levels for the quarter, with company meetings improving significantly.”
The company’s systemwide Q3 2022 RevPAR increased to $114.04, 29.9 percent year over year—which is up 5 percent over the same period in 2019—according to the company.
Nassetta noted RevPAR increased each month of Q3.
By region, U.S. third-quarter RevPAR reached $121.71, up 22 percent over 2021; the Americas (excluding the U.S.) reached $104.99, up 74.2 percent; Europe reached $123.15, up 91.7 percent; Middle East and Africa reached $82.10, up 45.2 percent; and Asia-Pacific reached $66.46, up 46.3 percent.
Hilton’s third-quarter occupancy and average daily rate also increased year over year across the board. Systemwide occupancy was 73.2 percent, up 8.7 percentage points over Q3 2021; and systemwide ADR was $155.86, up 14.5 percent, according to Hilton.
“Third-quarter occupancy levels are just four points shy of 2019 levels,” Nassetta said.
Third-quarter U.S occupancy was 74.5 percent, up 6 percentage points versus the same period in 2021. In the Americas (excluding the U.S.) occupancy was 71.4 percent, up 17.6 percentage points. It was 77.4 percent in Europe up 18.5 percentage points, and 63.9 percent in the Middle East and Africa, up 11.7 percentage points. Asia-Pacific occupancy was 63.6 percent, an increase of 13.7 percentage points.
Hilton partly attributed those increases to strong travel demand through the summer. “Post-Labor Day demand remained strong, and both business transient and group demand improved significantly,” Nassetta said. “Overall demand for the quarter peaked in September, nearly reaching 2019 levels with business transient demand only two points off from 2019 levels.”
ADR increased year over year across all regions, with the highest-percentage increase in Europe, up 45.9 percent to $159.10. U.S. ADR climbed 12.1 percent to $163.32, with ADR in the rest of the Americas (excluding the U.S.) up 31.2 percent to $147.08. ADR in the Middle East and Africa region increased 18.7 percent to $128.39 and in Asia-Pacific increased 14.9 percent to $104.50.
Overall, ADR for the quarter was $155.86, up 14.5 percent from 2021, according to the company.
“Rates across all segments surpassed 2019 levels … with both business transient and group up,” Nassetta said.
Among the company’s brands, Homewood Suites by Hilton and Home2 Suites by Hilton remained steady, with the highest occupancy rates (82 percent and 81.3 percent, respectively) and with the lowest increases over the same period in 2021.
Hilton reported quarterly revenue of approximately $2.36 billion, up about 35 percent year over year. Net income was $346 million, compared with $240 million one year prior.
The company projected fourth-quarter RevPAR to increase 19 percent to 23 percent year over year on a constant-currency basis.
Hilton Q2 results
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
