Hospitality group Hilton reveals Q2, H1 2019 performance
In Q2 the group’s net income increased by 20%
Hospitality giant Hilton has revealed its performance for Q2, H1 2019.
Net income for the second quarter was $261 million, a 20% increase from the same period in 2018, while system-wide comparable RevPAR increased 1.4% when compared to the same period last year.
According to the group’s officials, system-wide comparable RevPAR for the first six months grew 1.6 %, driven by increases in both ADR and occupancy. Management and franchise fee revenues increased by 10% as a result of RevPAR growth.
Net income for this period stood at $420 million when compared to $380 million for the same period last year.
In Q2 of 2019, Hilton opened 123 new hotels taking the total number of rooms to 17,100, contributing to a 7% net unit growth from June 30, 2018.
The group’s development pipeline totalled nearly 2,490 hotels consisting of approximately 373,000 rooms throughout 109 countries and territories, including 37 where Hilton does not currently have any open hotels.
According to data, 201,000 rooms in the development pipeline were located outside the US, and 192,000 rooms, or more than half, were under construction.
Hilton recently opened the Waldorf Astoria Dubai International Finance Centre and the Waldorf Astoria Maldives Ithaafushi, and remains on track to grow its luxury portfolio by 17% in 2019.
RevPAR, net income to increase throughout 2019
According to Hilton, RevPAR at the group’s properties is set to increase in the coming months.
“System-wide comparable RevPAR is expected to increase between 1% and 2% on a currency neutral basis compared to the third quarter of 2018,” the group said in a statement.
Meanwhile, net income is projected to be between $887 million and $909 million at the end of the year.