Hilton Boasts Record Development Deals But Pipeline Faces Backlog
Photo Caption: Lost Property St-Pauls London Curio Collection by Hilton Junior Suite 505. Source: Hilton.
Skift Take
Hilton has more properties signed for development than at any time in its history. But getting the these hotels open, given supply-chain, inflation, and labor-market challenges, may be tricky.
For Hilton Worldwide, one of the key long-term engines of growth would be returning to its pre-pandemic level of net unit growth — or essentially the pace at which it adds properties to its network. The timetable for that recovery was still unclear on Wednesday when the hotel giant reported its second quarter 2022 results.
Room growth was an important driver of the company's profitability, along with higher daily average rates. In the quarter, it generated a quarterly profit of $368 million attributable to stockholders off of $2.24 billion in revenue. The company reported that its systemwide revenue per available room, a key industry metric, was only 2.1 percent below the 2019 level on a currency-neutral basis.
Hilton said on Wednesday that it's on track to grow net units by about 5 percent this year
