Hilton checks in double profits in the first quarter thanks to tax benefits and higher rooms rates

 
Akis Palianastasis
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Paris Hilton is the great-granddaughter of Conrad Hilton, the founder of Hilton Hotels (Source: Getty)

US hotel group Hilton has reported a sharp increase of 42 per cent in like-for-like earnings per share compared to 2015 in its first quarter.

Profit rose to $309m (£212m) – up from $150m in the same period in previous year – thanks to tax benefits and higher rooms rates.

Hilton earned 17 cents per share in its latest quarter, boosting its revenue around six per cent to $2.75bn.

The company's earnings per share and revenue handily beat Wall Street estimates of 16 cents per share on revenue of $2.72bn.

Read more: Hilton Worldwide unveils plans for £76m hotel in the City

For the full year forecast earnings are between 92 to 98 cents per share with the adjusted earnings before interest, taxes, depreciation and amortisation projected to be $3.02bn to $3.1bn. For the second-quarter adjusted earnings are expected to come in between 25 cents and 27 cents per share.

Hilton approved 26,000 new rooms for development during the first quarter, a 14 per cent increase from the same period in 2015, and growing its development pipeline to 1,729 hotels.

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Hilton announced in February it would spin off most of its assets into a real estate investment trust shortly before new regulations came in barring such deals.

The move was a popular one among companies looking to unlock value in their real-estate holdings.

Hilton said it expected this year’s so-called RevPAR, a key metric of hotel health calculated by multiplying a hotel's average daily room rate by occupancy rate, to increase by three to five per cent over the year.

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