Hilton reports 1.8% revpar increase for 2016
Hilton has reported a revpar increase of 0.9% for the fourth quarter of 2016, and a total increase of 1.8% in its full-year 2016 results.
The company said it approved 29,000 new rooms for development during the fourth quarter, bringing total approvals to a record 106,000 rooms for the full year. Hilton opened 354 hotels last year and grew its development pipeline 16% from 2015 to 1,968 hotels, consisting of 310,000 rooms, 50% of which are under construction.
Net unit growth was 45,000 rooms in 2016, representing a 6.6% growth in managed and franchised rooms.
Hilton reported an adjusted EBITDA of $751m (£600m) for the three months ended December 31 2016 compared to $745 million (£595m) for the same period in 2015, and $2.98b (£2.38b) for the full year, compared to $2.88b (£2.38b) in 2015.
The company completed the spin-off of Park and HGV, and launched its newest brand, Tapestry Collection by Hilton, last month.
Christopher J. Nassetta, president and chief executive officer of Hilton, said: "For the quarter and full year, performance met our expectations. We also continued to increase our development activity this quarter and surpassed development records this year, approving 106,000 new rooms and opening nearly one hotel per day, contributing to net unit growth of over 45,000 rooms. With completion of the spin-offs, Hilton is a fee-based, capital-efficient and resilient business, with meaningful cash flow that we intend to be very disciplined in returning to stockholders."
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