Hilton Worldwide Holdings Inc today reported its first quarter 2020 results. With the exception of the Asia Pacific region, Hilton’s first quarter results were not significantly impacted by the Covid-19 pandemic until March 2020, with occupancy roughly flat through February in the Americas and Europe, Middle East and Africa (“EMEA”) regions. As such, the results for the three months ended March 31, 2020 are not indicative of future results and the material negative impact that the Covid-19 pandemic is expected to have on Hilton’s business for an indeterminate length of time.
For the three months ended March 31, 2020, system-wide comparable RevPAR decreased 22.6 per cent primarily as a result of decreases in occupancy, and management and franchise fee revenues decreased 18 per cent. The decreases were due to the Covid-19 pandemic and the related reduction in global travel and tourism, which required the complete and partial suspensions of hotel operations at many of Hilton’s properties.
Christopher J Nassetta, president & CEO, Hilton, said, “We are currently experiencing unprecedented times as a result of the Covid-19 pandemic, and our number one priority remains protecting the safety and security of our guests, team members and owners. We have also taken precautionary measures to protect our business, including securing our liquidity position. Given the strength of our system and dedication of our people, we believe we are well-positioned to navigate this crisis and ultimately recover stronger.”
For the three months ended March 31, 2020, diluted EPS was US$ 0.06 and diluted EPS, adjusted for special items, was US$ 0.74 compared to US$ 0.54 and US$ 0.80, respectively, for the three months ended March 31, 2019. Net income and adjusted EBITDA were US$ 18 million and US$ 363 million, respectively, for the three months ended March 31, 2020, compared to US$ 159 million and US$ 499 million, respectively, for the three months ended March 31, 2019.
In the first quarter of 2020, Hilton opened 67 new hotels, totalling 8,800 rooms, and achieved net unit growth of over 6,100 rooms. Additionally, during the quarter, Hilton signed the largest multi-brand deal in company history with Resorts World Las Vegas for a 3,500 room resort uniting Hilton Hotels & Resorts, LXR Hotels and Resorts and Conrad Hotels and Resorts.
As of March 31, 2020, Hilton’s development pipeline totalled nearly 2,670 hotels consisting of more than 405,000 rooms throughout 120 countries and territories, including 35 countries and territories where Hilton does not currently have any open hotels. Additionally, of the rooms in the development pipeline, 223,000 rooms were located outside the US, and 213,000 rooms were under construction.