Hilton reported continued strength in systemwide group
business. The segment's revenue per available room rose 3.7 percent year over
year in the first quarter, president and CEO Christopher Nassetta said. That
strength—which has lasted for several quarters, along with greater market share
and increases in both average daily room and occupancy—helped raise the
company's systemwide comparable RevPAR 1.8 percent year over year on a currency
neutral basis. Occupancy increased 0.5 percentage points to 71.4 percent, and ADR
rose 1.1 percent to $143.44. U.S. corporate demand softened in March, but
Nassetta said "corporate negotiated business and group bookings for 2019
remain solid." Despite a 2 percent year-over-year drop in net income for
the first quarter to $159 million, the company also remains bullish that income
will meet prior expectations given for the full year.
Hilton also opened 12,100 rooms across 85 hotels during the first
quarter. The quarter's net unit growth of 10,000 rooms marks a 41 percent
increase from the same period in 2018. As of March 31, Hilton's development
pipeline totaled more than 371,000 rooms throughout 108 countries and
territories. More than half, 193,000, are under construction. The company also
reported 90 million Hilton Honors loyalty members as of the end of the first
quarter, up 20 percent year over year.
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After Marriott
announced this week it is opening a homesharing brand, Nassetta said Hilton
had considered doing the same but is not pursuing it at this time. "We
fundamentally think homesharing is a different business," he said.
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