Hilton Worldwide exceeds profit expectations in 2014
The hotel group today reported its full year 2014 results, revealing a 7.1 per cent growth in global RevPAR and 13.5 per cent increase in adjusted EBITDA.
Hilton’s European business increased RevPAR by 6.1 per cent year-on-year, driven by 2.4 per cent growth in ADR and 2.6 per cent growth in occupancy.
The group added over 36,000 rooms to its global portfolio in 2014, with a further 82,000 rooms approved for development – bringing its total development pipeline to 230,000 rooms as of December 31 2014.
Hilton president and chief executive, Christopher J. Nassetta, said: "2014 was a banner year for Hilton Worldwide. Our fourth quarter and full year results exceeded our expectations for Adjusted EBITDA and fee growth, as did our full year RevPAR growth. Additionally, we continued to increase the value of shareholder equity by further reducing our longterm debt by $1 billion through voluntary prepayments during 2014.
"Our distinct, world-class brands continue to deliver accelerating growth, with 40,000 new rooms opening during 2014. Even with openings increasing, we continue to expand our industry-leading global pipeline, which consists of approximately 230,000 rooms, the majority of which are under construction. During the year, we launched two new brands, Canopy by Hilton and Curio - A Collection by Hilton, which will continue to expand our pipeline,"
2015 predictions
Hilton forecast further growth for 2015, with RevPAR, EBITDA and room count all expected to continue their upward trend.
"Looking ahead, we are optimistic that 2015 will bring continued strong performance and growth, with global RevPAR expected to increase 5 to 7 percent,” said Nassetta.
“Given our expanding development pipeline, we expect net unit growth in managed and franchised rooms of 6 to 7 percent."
