Q2 2024 Hilton Worldwide Holdings Inc Earnings Call Transcript
Key Points
- Hilton Worldwide Holdings Inc (HLT) reported strong second quarter results with RevPAR growth driving adjusted EBITDA and adjusted EPS above the high end of guidance.
- The company surpassed 8,000 hotels globally and achieved net unit growth of 6.2% in the quarter.
- System-wide RevPAR increased 3.5% year over year, driven by robust group performance and continued recovery in business transient.
- Hilton Worldwide Holdings Inc (HLT) opened 165 hotels, totaling more than 22,000 rooms, and signed 63,000 rooms, increasing the pipeline to approximately 508,000 rooms.
- The company expects net unit growth of 7% to 7.5% for the full year, driven by strong pipeline, recent acquisitions, and strategic partnerships.
- The high end of full-year system-wide RevPAR growth expectations was tempered due to softer trends in certain international markets and normalizing leisure growth.
- China RevPAR declined 5% in the quarter due to difficult year-over-year domestic travel comparisons and limited international inbound travel.
- The macroeconomic environment is weakening slightly, which has led to a reduction in the high end of RevPAR and EBITDA guidance.
- There were some timing issues and one-time items affecting non-RevPAR-driven fees, which may not be sustainable in the long term.
- The company noted that the leisure transient segment is normalizing, with some softening in demand due to reduced disposable income among lower-income consumers.
Good morning and welcome to the Hilton second quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Jill Chapman, Senior Vice President, Head of Development Operations and Investor Relations. You may begin.
Thank you, Chad. Welcome to Hilton's second quarter 2024 earnings call. Before we begin, we would like to remind you that our discussions this morning will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements and forward-looking statements made today speak only to our expectations as of today. We undertake no obligation to update or revise these statements.
For a discussion of some of the risk factors that could cause actual results to differ, please see the Risk Factors section of our most recently filed Form 10-K. In addition, we will refer to certain non-GAAP
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