Hilton is back in business, with increased net income over the third quarter of 2018. Revenues dropped due to increasing room rates and fewer stays, but management remains optimistic about growth opportunities moving forward.
Hilton issued its third-quarter 2021 report on October 26, tracking the recovery’s steady progress throughout the three months from July to September 30, 2021.
Since the conclusion of the third quarter, the bulk of its worldwide hotel operations have resumed, with 335 hotels suspended for a period of time throughout the last nine months of the year, down from 1,270 hotels in the first nine months of 2020. As of September 30, 2021, all but 88 hotels have reopened. The remainder of the company’s hotels are expected to open by the end of the year.
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The revenue per available room, or RevPAR, is an essential measure in evaluating the income of a hotel or hotel organization. The third quarter recorded a 98.7% growth in system-wide RevPAR over the same period previous year. While this rate is still 18.8% lower than it was in the pre-pandemic period of 2019, it is progressively increasing.
In comparison to the first nine months of 2020, RevPAR has climbed 47.6 percent in the last nine months.
Hilton’s third-quarter results are shown in this infographic. (Photo courtesy of Hilton)
For the third quarter, Adjusted EBITDA (profits before interest, taxes, depreciation, and amortization) was $519 million, over twice the $224 million Adjusted EBITDA for the same period in 2020. Hilton’s second-quarter 2021 Adjusted EBITDA was $400 million, indicating continued growth despite the pandemic’s different spikes.
The net income loss was $240 million, up from $81 million in the third quarter of 2020.
Hilton continues to expand its hotel portfolio, with 96 new hotels and 14,700 rooms opening in the third quarter of this year alone. The Mango House Seychelles, LXR Hotels & Resorts’ first resort in Asia, debuted this quarter. In addition, Home2 Suites just celebrated its 500th hotel.
Currently, the hotel company is working on more than 2,620 hotels with 404,000 rooms in 114 countries and territories. There are presently no Hilton hotels in twenty-seven of these nations and territories.
“We are delighted with our third-quarter results, which continue to indicate our recovery from the COVID-19 pandemic’s negative effect.” “During the quarter, leisure travel remained robust while business travel picked up,” stated Christopher J. Nassetta, President & CEO of Hilton. “Thanks to the strength of our industry-leading brand portfolio, we continue to extend our worldwide reach. Overall, we remain optimistic about a solid rebound in global tourism in the months and years ahead, as well as our market positioning, which will allow us to distinguish ourselves and achieve great results for all of our stakeholders.”
Visit Hilton for additional information and to see the complete report.
