HLT Q1 2022 Earnings

Call Details

• Call Title: Hilton Q1 2022 Earnings Call
• Date: May 3, 2022 at 2:00 PM UTC
• Management Team:
  • Jill Chapman (Senior Vice President, Investor Relations and Corporate Development)
  • Chris Nassetta (Chief Executive Officer)
  • Kevin Jacobs (Chief Financial Officer and President, Global Development)

Call Summary

Financial Performance

• System-wide REVPAR grew approximately 80.5% versus the prior year on a comparable and currency-neutral basis.
• System-wide REVPAR was approximately 83% of 2019 levels for the quarter, with adjusted EBITDA at roughly 90% of 2019 levels.
• Adjusted EBITDA for the quarter was $448 million, representing a large sequential recovery versus pandemic lows.
• Diluted earnings per share adjusted for special items was $0.71 for the quarter.
• U.S. comparable REVPAR grew 77% year-over-year and was down 13% versus 2019 for the quarter, with March down less than 6% versus 2019 in the U.S.
• Regional performance varied materially with Europe REVPAR up 349% year-over-year and down 30% versus 2019, Americas ex-U.S. REVPAR up 137% year-over-year and down 17% versus 2019, Middle East & Africa REVPAR up 121% year-over-year and up 8% versus 2019, and Asia-Pacific REVPAR up 11% year-over-year and down 47% versus 2019.

RevPAR Drivers

• Leisure transient drove strong weekend performance, with leisure REVPAR in the quarter exceeding 2019 levels and weekend rates up approximately 9% versus prior peaks.
• March system-wide rate was up 3% compared to 2019, indicating meaningful ADR recovery alongside occupancy gains.
• Business transient recovery strengthened sequentially, with large-account revenue in March only 12% below 2019 and business transient now comprising 45% of mix, about 10 points below pre-pandemic levels.
• April U.S. transient booked revenue for all future periods was up 17% versus 2019, with rates up 10% and room nights up 7%, demonstrating forward ADR-led strength.
• Weekday booked revenue was up 9% versus 2019 while weekend booked revenue was up 38% versus 2019, showing a heavier rate contribution to weekend leisure demand.
• Group recovery showed improvement with March total group REVPAR more than 75% of 2019 levels and first quarter booked group revenue for all future periods down just 4% versus 2019.