Hilton Worldwide reports third quarter 2015 net income of $279 million, an increase of $96 million from the same period in 2014. System-wide comparable RevPAR increased 5.8 percent.
Highlights include:
- EPS, adjusted for special items, for the third quarter was $0.23, a 28 percent increase from the same period in 2014; without adjustments, EPS was $0.28
- Net income attributable to Hilton stockholders for the third quarter was $279 million, an increase of $96 million from the same period in 2014
- Adjusted EBITDA for the third quarter increased 13 percent from the same period in 2014 to $758 million, and Adjusted EBITDA margin increased 290 basis points
- System-wide comparable RevPAR increased 5.8 percent for the third quarter on a currency neutral basis from the same period in 2014
- Management and franchise fees for the third quarter increased 14 percent from the same period in 2014 to $438 million
- Net unit growth was 13,000 rooms in the third quarter, a 16 percent increase from the same period in 2014
- Approved 26,000 new rooms for development during the third quarter, a 29 percent increase from the same period in 2014, growing Hilton's development pipeline to 1,555 hotels, consisting of 260,000 rooms
- Reduced long-term debt by $350 million during the third quarter; additional $100 million prepayment on senior secured loan facility borrowings in October 2015, for a total reduction of $850 million year-to-date through October 2015
- Increased outlook for full year Adjusted EBITDA to between $2,840 million and $2,870 million, an increase of $10 million at the midpoint
- Full year 2016 RevPAR expected to increase between 4.0 percent and 6.0 percent and net unit growth expected to be 45,000 rooms to 50,000 rooms
Overview
For the three months ended September 30, 2015, earnings per share ("EPS") was $0.28 compared to $0.19 for the three months ended September 30, 2014, and EPS, adjusted for special items, was $0.23 for the three months ended September 30, 2015 compared to $0.18 for the three months ended September 30, 2014. Adjusted EBITDA increased 13 percent to $758 million for the three months ended September 30, 2015, compared to $669 million for the three months ended September 30, 2014, and net income attributable to Hilton stockholders was $279 million for the three months ended September 30, 2015 compared to $183 million for the three months ended September 30, 2014.
For the nine months ended September 30, 2015, EPS was $0.60 compared to $0.52 for the nine months ended September 30, 2014, and EPS, adjusted for special items, was $0.60 for the nine months ended September 30, 2015 compared to $0.53 for the nine months ended September 30, 2014. Adjusted EBITDA increased 15 percent to $2,134 million for the nine months ended September 30, 2015, compared to $1,851 million for the nine months ended September 30, 2014, and net income attributable to Hilton stockholders was $590 million for the nine months ended September 30, 2015 compared to $515 million for the nine months ended September 30, 2014.
Christopher J. Nassetta, President & Chief Executive Officer of Hilton Worldwide, said, "We had yet another strong quarter with Adjusted EBITDA exceeding the high end of guidance. The fundamentals of our business remain strong, particularly in the United States, where demand growth continues to exceed historically low levels of supply. New supply disproportionately favors our brands given the leading economic returns they deliver for hotel owners, resulting in accelerating net unit growth for our system."
To view full third quarter financial results and tables please visit:
http://news.hiltonworldwide.com/assets/HWW/docs/2015/Q4/Q32015EarningsRelease.pdf
Starwood Reports Third Quarter Net Income of $88 million compared to $109 million in the year ago quarter. Worldwide Systemwide REVPAR for Same-Store Hotels increased 5.4% and North America increased 5.3%
Third Quarter 2015 Highlights
- Excluding special items, EPS from continuing operations was $0.74. Including special items, EPS from continuing operations was $0.53.
- Adjusted EBITDA was $294 million.
- Excluding special items, income from continuing operations was $125 million. Including special items, income from continuing operations was $88 million.
- Worldwide Systemwide REVPAR for Same-Store Hotels increased 5.4% in constant dollars (decreased 0.3% in actual dollars) compared to 2014. Systemwide REVPAR for Same-Store Hotels in North America increased 5.3% in constant dollars (increased 3.6% in actual dollars).
- Management fees, franchise fees and other income increased 3.1% compared to 2014. Core fees increased 1.9% compared to 2014.
- Earnings from Starwood’s vacation ownership and residential business increased approximately $8 million compared to 2014.
- During the quarter, the Company signed 44 hotel management and franchise contracts, representing approximately 8,600 rooms and opened 27 hotels and resorts with approximately 4,800 rooms.
- During the quarter, the Company paid a quarterly dividend of $0.375 per share and repurchased 1.3 million shares at a total cost of $100 million and a weighted average price of $76.64 per share.
- During the quarter, the Company completed the sale of The Westin Excelsior Rome for gross cash proceeds of $251 million subject to a long-term management agreement.
- Today, the Company announced that it had entered into definitive agreements with Interval Leisure Group, Inc. (“Interval”) pursuant to which the Company’s vacation ownership business will be distributed on a pro rata basis to stockholders and immediately after will merge with a wholly-owned subsidiary of Interval. The transaction has a total value to Starwood of approximately $1.5 billion.
Third Quarter 2015 Earnings Summary
Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the third quarter of 2015 of $0.53 compared to $0.59 in the third quarter of 2014. Excluding special items, EPS from continuing operations was $0.74 for the third quarter of 2015 compared to $0.66 in the third quarter of 2014.
Special items in the third quarter of 2015 consisted primarily of losses on asset dispositions and impairments of $46 million ($34 million after-tax) and restructuring and other special charges of $9 million ($7 million after-tax). Special items in the third quarter of 2014 totaled a charge of $12 million (after-tax). Excluding special items, the effective income tax rate in the third quarter of 2015 was 32.0% compared to 34.7% in the third quarter of 2014.
Income from continuing operations was $88 million in the third quarter of 2015, compared to $109 million in the third quarter of 2014. Excluding special items, income from continuing operations was $125 million in the third quarter of 2015 compared to $121 million in the third quarter of 2014.
Net income was $88 million and $0.53 per share in the third quarter of 2015, compared to $109 million and $0.59 per share in the third quarter of 2014.
Adam Aron, Chief Executive Officer of the Company on an interim basis, said, “As we expected, the results for the completed third quarter were encouraging. Our performance is yet another indication that Starwood has been making progress on the sharply-focused strategy we launched in February 2015 to strengthen our brands, drive operational excellence, and accelerate the pace of our growth. Collectively these efforts have also yielded better growth in our new hotel signings, with rooms up 33% year-to-date through the end of the third quarter. These results on both operations and development give us optimism to have a bullish outlook for 2016 as well as the future of our brands and hotels.”
To view full third quarter financial results and tables please visit:
