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Hilton results top estimates as holiday travel boosts hotel occupancy

Published 02/16/2022, 06:09 AM
Updated 02/16/2022, 08:30 AM
© Reuters. FILE PHOTO: Hilton hotel logo is seen on 52nd street following the outbreak of coronavirus disease (COVID-19), in New York City, U.S., March 18, 2020. REUTERS/Jeenah Moon/File Photo
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(Reuters) -Hilton Worldwide Holdings Inc topped analyst estimates for quarterly profit and revenue on Wednesday, as higher vaccinations and a rebound in travel demand during the holiday period boosted occupancy rates at its hotels.

Hospitality companies around the globe have benefited from higher travel demand during the fourth quarter with more people checking into hotels during the holiday period, boosting occupancy rates to near pre-pandemic levels.

Hilton reported comparable RevPAR (revenue per available room) of $84.14 for the fourth quarter, as occupancy rates across its hotels rose to 61.3% from 20.7% a year earlier.

Peer Marriott International (NASDAQ:MAR) Inc also topped analyst estimates for quarterly results on Tuesday, with occupancy rates in its U.S. and Canada region jumping to 60% from 35.1% a year earlier.

Occupancy at Hilton's U.S. and Canada region nearly tripled to 63.3% in the quarter.

Hilton Chief Executive Officer Christopher Nassetta said he remains confident about a recovery across segments in 2022, despite facing a short-term impact from newer variants of COVID-19 in 2021.

© Reuters. FILE PHOTO: Hilton hotel logo is seen on 52nd street following the outbreak of coronavirus disease (COVID-19), in New York City, U.S., March 18, 2020. REUTERS/Jeenah Moon/File Photo

The company reported net income attributable to shareholders of $147 million, or 52 cents per share, for the quarter ended Dec. 31, compared to a net loss of $224 million, or 81 cents per share, a year earlier.

Excluding items, Hilton earned 72 cents per share compared with Refinitv IBES estimates of 70 cents per share, while fourth-quarter revenue nearly doubled to $1.84 billion compared to estimates of $1.83 billion.

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