Hilton Worldwide announced 2016 1st quarter data on Wednesday, releasing an unexpected profit of $309 million for the first three months of the year.
The results represent a significant uplift against the same period of 2015. Last year 1st quarter results Hilton reported net income of just $150 million.
The firm’s unadjusted earnings per share (EPS) for January 1 – March 31 period reported $0.31 versus last year same period adjusted EPS of $0.17, which is 42 % more.
Same comparison in numbers are recorded at $2.75 billion in revenues that is 5 percent more against $2.6 billion for the period January 1 – March 31 in 2015.
According to The Wall Street Journal Hilton’s first quarter performance drastically overcome Wall Street prognoses, where majority were forecasting ceiling of $0.16 adjusted EPS derived from expected revenue of $2.74 billion.
Hilton Worldwide in the same time announced a remarkable increase of its net units for the first three months in 2016, stating 6,500 rooms and highlighting a 16% rise compared to first quarter 2015.
This addition to new inventory under development signed a 14 percent increase against the same period in 2015 reporting 26,000 new opening rooms in the first quarter 2016. Hence absolute portfolio of Hilton Worldwide’s inventory under development increased to 281,000 rooms totalling up 1,729 hotels.
Two months earlier Hilton released plans to spin off its timeshare and real estate businesses into a REIT.
Now Hilton approved plans to complete spin off by the end of the year adding more than 80 estates into REIT and spin off Hilton Grand Vacations (its timeshare business) merging into own publicly-traded firm expecting to expand shareholder value.
Hilton’s first quarter 2016 profits are considered encouraging, especially when compared against Marriott’s takeover of Starwood Hotels & Resorts Worldwide this year. This considered as an ambitious move to form the world’s largest hotel company.
One should mention that Hilton Worldwide first quarter impressive profits were well supported by corporate emphasis on loyalty program and high level of customer satisfaction.
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