Hilton Beats Expectations on Heavy Demand for U.S. Vacations

(Bloomberg) — Hilton Worldwide Holdings Inc. reported better-than-expected results for the second quarter, as travelers made up for lost vacations.

  • The company reported adjusted earnings per share of 56 cents, according to a statement Thursday, beating the average analyst estimate of 39 cents. Its shares surged as much as 4.2%, the biggest intraday jump in more than five months.

Key Insights

  • Leisure travel surged in the U.S., which accounts for the largest share of Hilton’s revenue, helping push occupancy rates and room prices higher. Strong demand from vacationers offset sluggish corporate travel, helping U.S. hotels match pre-pandemic performance in recent weeks.
  • Revenue per available room, or Revpar, more than tripled from a year earlier, benefiting from a comparison to a period when global travel was locked down. Revpar was down 62% from the second quarter of 2019, before Covid-19 roiled global travel.
  • U.S. Room demand continued to improve in July even as Covid-cases spiked, Chief Executive Officer Christopher Nassetta said on a conference call with investors. With occupancy rates rising, labor availability remains a key issue, Nassetta said.
  • Still, the spread of the highly transmissible delta variant is threatening the travel rebound. Hilton is seeing a slower recovery in parts of the world with lower vaccination rates. Occupancy rates were 64% in the U.S., compared to 56% in Asia and 32% in Europe.

Market Reaction

  • Hilton shares jumped to $134.99 on Thursday in New York. The stock had gained 16% this year through Wednesday’s close, compared with a 2% gain for the Bloomberg Americas Lodging Index.

(Updates share price and adds CEO comments from earnings call.)

More stories like this are available on bloomberg.com

©2021 Bloomberg L.P.

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!



Women's empowerment
Seizing the Narrative: The Transformative Impact of Storytelling on Women’s Empowerment
April 19, 2024

With gender equality becoming a significant global agenda, the narrative around women’s empowerment is more relevant than ever. Amid rising awareness and shifting societal norms, women are increasingly seeking avenues for self-expression and empowerment. A recent study by the Global Gender Gap Report highlights that while progress is being made, substantial efforts are still […]

Read More
V2G technology
Plug into the Future: Decoding V2G for Utility Applications
April 19, 2024

Brian Rudy from Verizon IoT and Melissa Chan of Fermata Energy explore the cutting-edge potential of vehicle-to-grid (V2G) technology at DISTRIBUTECH 2024. Their discussion highlights how this innovation transforms electric vehicles into dynamic energy storage units, capable of stabilizing the grid by storing and discharging power as needed. This technology represents a significant shift […]

Read More
zero trust architecture
Secure Grid Modernization with Zero Trust Architecture
April 19, 2024

Ray Bauer of Verizon Business engages with Del Rodriguez from Palo Alto Networks at DISTRIBUTECH 2024. Rodriguez shares insights into the significance of cybersecurity within the utility sector, particularly in light of increasing cyber threats and the convergence of IT and operational technology (OT). Bauer and Rodriguez discuss Palo Alto Networks’ initiatives to enhance […]

Read More
private wireless networks
Private Wireless Networks
April 19, 2024

Verizon host Wayne Weeks discusses the evolving utility industry with John Gaster, CEO of KSI Data Sciences at DISTRIBUTECH 2024. Together, they explore how KSI focuses on harnessing data from remote sensing devices to enhance the safety, efficiency, and cost-effectiveness of utility operations. Gaster emphasizes the significant role of AI and machine learning in […]

Read More