Hilton CEO: Continued Growth of Hospitality Indust

We’re sure last week was an exciting one for people in the hotel industry, especially for global hotel project owners and developers. Hilton reported third-quarter (Q3 for short) results, and its CEO, Chris Nassetta, said on Hilton's Q3 earnings call, that he expects a continued rebound of the broad hotel industry.

Summary of Hilton Q3 Results and CEO Remarks

Some highlights of Hilton Q3 results:

• System-wide comparable RevPAR increased 29.9% compared to the same period in 2021, and 5% compared to the same period in 2019

• Approved 19,900 new rooms for development during Q3

• Full-year 2022 system-wide comparable RevPAR is expected to increase between 40% and 43% compared to 2021

• In the Asia-Pacific region, Q3 RevPAR was up 46% year-over-year and down 16% versus 2019.

• RevPAR in China was down 14% compared to 2019, improving 33 percentage points quarter-over-quarter.

(Note: RevPAR represents the revenue generated per available room, whether or not they are occupied.)

Nassetta believes we will continue to see low supply growth and high demand growth. While the world is slowing down, he believed people are “spending more on experiences, international travel, pent-up demand and the incremental demand associated with people having to run their businesses, gather, and meetings and events of all sorts - whether it's social or business”. Therefore, he believed that there are more positives than negatives for his company.

Nassetta added that Q3 marked a "very important milestone" in the continued recovery of his company, as it was the first quarter to surpass 2019 system-wide RevPAR levels. P Morgan Research analysts Joseph Greff, Omer Sander, and Ryan Lambert said in a report, that they "remain very impressed" with how Hilton’s "strong brands" is generating"above-peer third-party network growth" and that the brands have "durable and sustainable competitive advantages." 

Hilton CFO, Kevin Jacobs, said they remain optimistic about further recovery “across the entire Asia-Pacific region as travel restrictions continued to ease and borders reopened to international travel”.

Image by Bruce Emmerling from Pixabay

Opportunities to Grasp

As Nassetta pointed out, people are willing to spend and experience more at hotels and their needs of travel are increasing. Therefore, various business opportunities are on the rise. If you are a hotel project owner or developer, you can consider embracing an upgraded design of your hotel to amplify the notion of experience in hospitality. For hospitality product suppliers and designers, providing high-quality, experience-based products or design services is always a priority for you.

Source: 1. CoStar 2. Skift 3. Hospitalitynet

BuildMost Official

BuildMost APP