The average daily rate at Hilton Worldwide properties during the second quarter increased 4 percent year over year to $143.19, the company reported Friday.
ADR at Hilton brands during the quarter increased in all four global regions, most strongly in the Americas (up 4.4 percent to $138.61). It increased 2.3 percent to $155.17 in the Middle East and Africa, 2.1 percent to $159.19 in Asia/Pacific and 1.5 percent to $179.87 in Europe.
Hilton's global occupancy during the quarter increased 2 percentage points year over year to 78.4 percent, including a 2.2-percentage-point increase to 79.5 percent in the Americas. Occupancy was up in all other regions except the Middle East and Africa, where it declined 3.7 percentage points to 62.3 percent.
Second-quarter ADR and occupancy increased across all Hilton brands during the quarter. The biggest percentage ADR spikes were at Waldorf Astoria Hotels & Resorts (up 5.3 percent to $316.52), Homewood Suites (up 4.8 percent to $126.33), Conrad (up 4.7 percent to $263.30) and Doubletree (up 4.6 percent to $136.44). Three of Hilton's brands—Embassy Suites and extended-stay brands Homewood Suites and Home2 Suites—reached occupancies higher than 80 percent for the quarter.
In a Friday conference call to investors, Hilton president and CEO Christopher Nassetta said that transient business in the quarter was "great" and group business is shaping up to end the year on a strong note. In particular, hotels are replacing "lower-quality, filler groups" with "higher-quality, higher-paying groups that have a lot more ancillary spend," he said.
The company's newest brand, upper-tier independent hotel collection Curio, now has agreements in place for nine properties with more than 75 Curios globally "in various stages of discussion," Nassetta said. He added that Hilton remains on track to launch a 12th brand, in the "accessible lifestyle" category, by the end of the year.
Hilton's net income for the quarter was $212 million, up from $157 million in the second quarter of 2013.