Hilton Worldwide Holdings Inc. said profit more than doubled in the first quarter, helped by an income tax benefit, as revenue increased more than expected.

The company also issued in-line guidance for earnings in the current quarter, projecting an adjusted profit per-share between 25 cents and 27 cents, as analysts, according to Thomson Reuters, expected 26 cents.

Hilton in February said it plans to spin off a chunk of its hotel into a real-estate investment trust, popular among companies looking to slim down and unlock the value in their real estate holdings. Hilton's REIT will include about 70 properties, representing a little more than half of the company's portfolio of owned or leased hotels. Analysts have said the properties, which include hotels under the Hilton and DoubleTree banners, could be worth more than $10 billion.

Separately on Wednesday, Hilton said it appointed Thomas J. Baltimore, Jr. as chief executive of the planned REIT. It also named Sean M. Dell'Orto as financial chief. The REIT is expected to form following its separation from Hilton later this year.

Mr. Baltimore's role as CEO is effective May 16. He will report to Christopher J. Nassetta, Hilton Worldwide's CEO, and Dell'Orto will continue to serve as senior vice president and treasurer for Hilton Worldwide. Mr. Baltimore most recently served as CEO of RLJ Lodging Trust, a publicly traded REIT.

Hilton also plans to separate its timeshare business, a move that follows similar steps by rivals that would turn Hilton into three distinct entities.

Over all in the quarter ended March 31, Hilton earned $309 million, or 31 cents a share, compared with $150 million, or 15 cents a share, a year ago. Excluding special items, the company earned 17 cents. Revenue climbed 5.8% to $2.75 billion.

The company had guided for 15 cents to 17 cents a share. Analysts expected $2.72 billion in revenue.

In the quarter, system wide revenue per available room—also known as RevPAR, a key industry gauge of pricing power—rose a currency-adjusted 2.1%. Hilton had forecast 2% to 4% RevPAR growth in the first quarter. The company expects RevPAR to increase between 3% and 5% in the second quarter.

The company also had an income tax benefit of $46 million in the quarter, compared with an income tax expense of $163 million in the year-ago period.

The company backed its earnings outlook for the year of per-share profit between 92 cents and 98 cents.

Shares, up 21% in the past three months, were inactive premarket.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

 

(END) Dow Jones Newswires

April 27, 2016 07:35 ET (11:35 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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