Egypt and Saudi growth propels Hilton in Q3
Operator expects positive performances to offset instability elsewhere
Echoing the recent performances of a number of its competitors, Hilton Worldwide has highlighted Egypt and Saudi Arabia as the major drives of growth in the Middle East and Africa (MEA) region in Q3.
The operator’s results for the period show that, in the three months to the end of September, occupancy in MEA grew by 11.7 percentage points to 63.7%, while RevPAR was up 15.5% to US $106.32. Average daily rates declined by 5.7% to US $167.
Speaking during an earnings call Hilton Worldwide president & CEO Chris Nassetta details the dynamics of the company’s growth in the region.
“Middle East Africa region is recovering nicely overcoming uncertainty surrounding the situation in Syria and Iraq,” he said. “We expect strength in Egypt to continue due to easy comparisons and what we hope is the beginning of a sustained recovery.
“We think RevPAR performance in the region will be up in the mid-single digits as tailwinds from Egypt and Saudi Arabia offset headwinds in other parts of the region.”
System wide, Hilton’s occupancy levels were up 3.1 percentage points to 79%, ADR climbed 4.2% to US $142.51 and RevPAR rose 8.4% to US $112.59.
Overall, the company’s revenues rose 8% to US $2.64 billion, while adjusted earnings before interest, tax, depreciation and amortisation grew by 13% to US $645 million.
"Recently, our luxury and lifestyle brands noted significant accomplishments, with the launch of our 12th brand, Canopy by Hilton, which we believe will redefine the lifestyle category," added Nassetta.
"Also, our planned sale and long-term management of the Waldorf Astoria New York, which after a major renovation by the new owner will return the iconic property to its historic grandeur, is expected to unlock significant value for shareholders."