Hilton Opened a Hotel Roughly Every Half Day This Quarter

Hilton reported that it opened 182 hotels in the third quarter, adding roughly 27,000 rooms. The company called it its largest quarter ever for organic openings. Net of closures, the chain added about 23,000 rooms, which works out to net unit growth of 6.0 percent, and its development pipeline now stands at 543,100 rooms.

Demand held up too. Comparable, currency-neutral revenue per available room rose 5.8 percent. Net income came in at $536 million, up from $421 million a year earlier, and adjusted EBITDA reached $1.058 billion. Those are the figures an owner or franchisee watches when deciding whether to sign with a brand, and they help explain why the pipeline keeps growing.

The regional picture was uneven. RevPAR rose 7.0 percent in the United States and 6.5 percent in Europe, but fell 5.6 percent in the Middle East and Africa and slipped 0.5 percent in Asia Pacific. Conflict-related disruption in the Middle East has weighed on other hotel companies this quarter as well, a reminder that global averages can hide very different local conditions.

For travelers, more supply usually means more choice in secondary cities and along highways, where much of the growth happens. Rates in the United States and Europe are still climbing, though, so more rooms do not automatically translate into lower prices. Loyalty members who book direct and watch for new-opening promotions tend to find the best early deals.

Sources: Travel PR News, eTurboNews