GlobalData: Hilton well positioned for further growth following Q2 results
Hilton Worldwide Holdings Inc. (Hilton) today announced its Q2 2019 results. Nick Wyatt, Head of Tourism at GlobalData offers his take on the company’s announcement:
“Hilton’s Q2 email address details are spectacular, topping Wall Street profit estimates and continuing on from the strong first quarter.
“The above-expectation performance has been driven by strong demand for rooms, in North America particularly, which has driven improved revenue per available room (RevPAR) since it has allowed Hilton to improve both average daily rate (ADR) and occupancy rates.
“RevPAR is a good indicator of pricing power and the known proven fact that system-wide ADR grew 0.9% in the initial half a year of the entire year without adversely affecting occupancy rates implies that Hilton’s brand service and equity offering let it move pricing in its favor. Hilton has been investing greatly in industry-leading guest facing technologies and the Connected Room concept to serve as a differentiator, which is apparently paying dividends.
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“Actually, system wide occupancy grew 0.6% in comparison to H1 2018, and therefore Hilton has had the opportunity to improve prices while improving occupancy rates. Attracting more customers whilst getting them to cover more is really a recipe for success and Hilton has delivered on its promise of sustaining the success it saw in the initial 90 days of the entire year.
“The business has already established to somewhat reduce RevPAR projections, now forecasting a rise of 1%-2%, as opposed to the original guide of 1%-3%, and its own H1 performance is very much indeed consistent with this projection, which should be stressed, is very positive still.
“With this type of strong performance and a development pipeline of 2 almost, 500 hotels with 373 approximately,000 rooms, Hilton is primed for further growth.”
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