Hilton Worldwide Holdings Inc (NYSE:HLT) has reported a jump in third-quarter adjusted earnings and forecast a "meaningful uptick" in the fourth quarter as demand for hotels remains strong.
The hotel operator said in the quarter ended September, adjusted EBITDA rose 14% to $834 million from the year before, adjusted diluted EPS was $1.67, up 27%, and net income climbed to $379 million from $346 million.
Christopher Nassetta, president and chief executive said: "We continued to see strong results during the third quarter, exceeding our expectations for system-wide RevPAR growth, with growth across all customer segments."
"We believe we have hit an inflection point and expect a meaningful uptick in openings in the fourth quarter with continued positive momentum into next year. With a record number of approvals year-to-date driving the largest pipeline in our history, we are confident in our ability to accelerate net unit growth to 5.5% to 6.0% next year."
The firm said comparable revenue per available room (RevPAR) increased 6.8%, and was 11.4% higher when compared to the same period in pre-pandemic 2019.
A further 35,500 new rooms were approved for development during the third quarter, bringing Hilton's development pipeline to a record 457,300 rooms as of September 30, growth of 4% from June 30, and 10% from the year before.
Hilton said it had added 15,700 rooms in the quarter, resulting in 14,300 net additional rooms during the period.
Looking ahead, the company expects full year 2023 RevPAR to increase between 12.0% to 12.5%, net income between $1.38 billion and $1.39 billion and adjusted EBITDA between $3.03 billion and $3.05 billion.
Shares were 1.2% higher in pre-market trading.