Hilton is set to strengthen its global luxury portfolio through a new partnership with Small Luxury Hotels of the World, even as it predicts a steady demand for leisure travel in the U.S.
Despite a 5.7 percent year-over-year increase in revenue per available room (RevPAR) to $107.69 in 2023, Hilton foresees a plateau in profits this year. The projected earnings per share are expected to range from $6.80 to $6.94, slightly below analysts’ earlier forecasts of $7.07 per share.
Chris Nassetta, President & CEO of Hilton, expressed optimism during an earnings call, highlighting the anticipated growth in all major regions, with international markets expected to slightly outpace the U.S. He emphasized the positive outlook for RevPAR growth across all segments, driven by the recovery in business transient and group travel, along with steady leisure demand.
Looking ahead, RevPAR is expected to increase by 2 to 4 percent from 2023, driven by rising costs and new developments, with a projected full-year net income ranging from $1.69 to $1.72 billion. The past year also saw a record number of hotel signings and additions to Hilton’s development pipeline, with over 3,300 new hotels in various stages of development.
The partnership with Small Luxury Hotels of the World adds 560 boutique luxury hotels in 90 countries to Hilton’s portfolio. These properties will be bookable through Hilton Honors, allowing guests to earn loyalty rewards. The collection, known as SLH, joins Hilton’s other luxury brands, including Waldorf Astoria Hotels & Resorts.
Shaun Leleu, chairman of Small Luxury Hotels of the World, hailed the partnership as a game changer for independently owned hotels globally, offering expanded reach to a loyal and discerning audience of Hilton customers, including Hilton Honors members.
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