Systemwide Hilton Worldwide business transient revenue per
available room in the third quarter increased 2 percent year over year,
officials said Wednesday, adding they project roughly similar growth throughout
2025.
Hilton's overall third-quarter RevPAR increased 1.4 percent
year over year, lower than the 2 percent to 3 percent the company projected
last quarter, a miss CEO Christopher Nassetta attributed to "slower
ramp in September following Labor Day, weather impacts, unfavorable calendar
shifts and ongoing labor disputes in the U.S."
Third-quarter group RevPAR increased 5 percent year over
year, buoyed by a broad-based increase in demand. "We're seeing really
terrific demand" for corporate meetings, Nassetta said.
Demand for transient business travel increased both among
Hilton's large corporate clients and small and midsized enterprises, Nassetta
said. With an economy that he said "remains strong, resilient and showing
positive growth," Nassetta projected business transient demand in 2025
would surpass the peaks reached in 2019.
"You will see increase in demand," he said. "All
the anecdotal and hard evidence that we're getting from most of our big
accounts and our SMB business suggests that, and you will continue to have good
pricing power there."
Nassetta projected a 2025 year-over-year increase in
business transient demand in the "in the low single digits, but higher
than one," noting this year's increase likely will land at 2 percent to
2.5 percent.
Hilton Q3 Metrics
Hilton's systemwide third-quarter RevPAR increased 1.4
percent year over year to $121.04, while average daily rate increased 1 percent
to $161.18 and occupancy grew 0.3 percentage points to 75.3 percent.
In the United States, third-quarter RevPAR increased 1
percent to $127.83, while ADR grew 0.8 percent to $169.59 and occupancy
increased 0.2 percentage points to 75.4 percent.
Third-quarter revenue increased 7 percent year over year to
$2.87 billion, and net income declined to $344 million from $377 million one
year prior.
Hilton projected a year over year increase of systemwide
RevPAR of 1 percent to 2 percent for the fourth quarter and 2 percent to 2.5
percent for the full year.
The company's development pipeline at the end of the third
quarter totaled 492,400 rooms, up 8 percent from last year.
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Q2 performance