Hilton Worldwide Holdings Inc (NYSE:HLT) shares climbed after the hospitality giant posted strong fourth-quarter earnings that beat Wall Street estimates by $0.36.
For the period ended December 31, 2022, the McLean, Virginia-based group with a broad portfolio of hotels and resorts posted earnings per share of $1.59, $0.36 better than analyst estimates of $1.23.
The company’s net income and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $333 million for the 4Q, compared to $148 million in 4Q of 2022. Hilton’s revenue for the quarter came in at $2.44 billion, compared to the consensus estimate of $2.35 billion.
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For the year ended December 31, 2022, Hilton said its earnings per share were $4.89, compared to $2.08, for the year ended December 31, 2021.
Meanwhile, net income and Adjusted EBITDA were $1,257 million and $2,599 million, respectively, for the year ended December 31, 2022, compared to $407 million and $1,629 million respectively for the year ended December 31, 2021.
Investors reacted to the news, sending Hilton shares up 2.6% to $151.11 in morning trade on the New York stock Exchange.
"Our 4Q and full year results surpassed our expectations, with 4Q system-wide RevPAR meaningfully exceeding the same period in 2019 driven by growth across all segments,” Hilton CEO Christopher J. Nassetta said in a statement.
“Positive momentum has continued into the new year with exciting growth opportunities ahead, including the expansion of our brand portfolio with the launch of our newest brand, Spark by Hilton."
In January 2023, Hilton launched Spark by Hilton, a premium economy brand. Spark leverages a conversion model approach to growth and had more than 200 hotels in various stages of negotiation as of February 3, 2023, said the company.
Overall, 17,700 rooms were added to Hilton's system in the fourth quarter.
During the fourth quarter of 2022, Hilton repurchased 3.8 million shares for a cost of $501 million and an average price per share of $131.36.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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