Hilton Opens More Rooms in Fourth Quarter Than Any Quarter in Its History, Achieves Record Year of Signings
January 22 2024 - 7:00AM
Business Wire
Company positioned for accelerated growth in
2024, supported by largest-ever development pipeline and launch of
two new brands
Hilton (NYSE: HLT) ended 2023 with the strongest development
quarter in its history, opening more new rooms than during any
other quarter. The hospitality leader opened 132 hotels and
approximately 24,000 rooms between October and December 2023,
contributing to full-year openings of 395 hotels and approximately
63,000 rooms to achieve net unit growth of 4.9%.
Hilton also continued to strengthen its development pipeline
with record 2023 signings of nearly 1,000 hotels representing
130,000 rooms, up 45% from the prior year and meaningfully ahead of
pre-pandemic levels. The company’s pipeline is now the largest in
its history with nearly 3,300 hotels, totaling more than 462,000
rooms.
Hilton delivered another year of strong construction starts, up
15% over 2022 and approaching pre-pandemic levels. Hilton now has
more new rooms under construction than any other hotel company with
approximately one in every five hotel rooms under construction
globally slated to join the company’s portfolio.
“Our team is delivering robust results, supported by the power
of our brands, our award-winning culture and strong commercial
engines,” said Chris Nassetta, president and CEO, Hilton. “Premium
products and exceptional levels of service are driving strong
customer demand for our hotels around the world, while better
returns are supporting strong owner interest. We continue to feel
very good about our prior net unit growth guidance of 5.5% to 6.0%
in 2024, with strong indications towards the higher end of the
range based on the positive momentum we are seeing in signings and
construction starts.”
The company’s growth opportunities are further boosted by the
recent addition of two new brands to its portfolio – Spark by
Hilton and LivSmart Studios by Hilton -- which is driving strong
activity with owners looking to tap into the growing demand for
hotels in the premium economy and long-stay segments.
“Hilton’s development results continue to be an indicator of how
well-positioned we are for long-term growth,” said Kevin Jacobs,
CFO and president, global development, Hilton. “Hotel owners choose
to work with us because of the strength of our growing portfolio of
brands and our premium commercial performance. This owner
preference drives our capital light growth and fuels our network
effect, which helps us continue to deliver value for all our
stakeholders.”
Hilton ended 2023 with more than 7,500 properties in 126
countries and territories, expanding options for guests nearly
anywhere they want to travel. On average, more than one new hotel
per day was added to Hilton’s global portfolio.
The company also welcomed more guests in 2023 than ever before
with more than 213 million travelers staying at Hilton properties
around the world. Hilton Honors, the company’s award-winning
loyalty program, ended the year with record membership of more than
180 million members.
About Hilton
Hilton is a leading global hospitality company with a portfolio
of 22 world-class brands comprising more than 7,500 properties and
nearly 1.2 million rooms, in 126 countries and territories.
Dedicated to fulfilling its founding vision to fill the earth with
the light and warmth of hospitality, Hilton has welcomed over 3
billion guests in its more than 100-year history, was named the No.
1 World’s Best Workplace by Great Place to Work and Fortune and has
been recognized as a global leader on the Dow Jones Sustainability
Indices for seven consecutive years. Hilton has introduced
industry-leading technology enhancements to improve the guest
experience, including Digital Key Share, automated complimentary
room upgrades and the ability to book confirmed connecting rooms.
Through the award-winning guest loyalty program Hilton Honors, the
more than 180 million members who book directly with Hilton can
earn Points for hotel stays and experiences money can't buy. With
the free Hilton Honors app, guests can book their stay, select
their room, check in, unlock their door with a Digital Key and
check out, all from their smartphone. Visit stories.hilton.com for
more information, and connect with Hilton on Facebook, Twitter,
LinkedIn, Instagram and YouTube.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements include, but are not limited to,
statements related to the expectations regarding the performance of
Hilton's business, future financial results, liquidity and capital
resources and other non-historical statements. In some cases, you
can identify these forward-looking statements by the use of words
such as "outlook," "believes," "expects," "forecasts," "potential,"
"continues," "may," "will," "should," "could," "seeks," "projects,"
"predicts," "intends," "plans," "estimates," "anticipates" or the
negative version of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties including, among others, risks inherent to the
hospitality industry; macroeconomic factors beyond Hilton's
control, such as inflation, changes in interest rates, challenges
due to labor shortages or disputes and supply chain disruptions and
recent events affecting the financial services industry; risks
related to the impact of the COVID-19 pandemic; competition for
hotel guests and management and franchise contracts; risks related
to doing business with third-party hotel owners; performance of
Hilton's information technology systems; growth of reservation
channels outside of Hilton's system; risks of doing business
outside of the U.S.; risks associated with conflicts in Eastern
Europe and the Middle East and other geopolitical events; and
Hilton's indebtedness. Additional factors that could cause Hilton's
results to differ materially from those described in the
forward-looking statements can be found under the section entitled
"Part I—Item 1A. Risk Factors" of Hilton's Annual Report on Form
10-K for the fiscal year ended December 31, 2022, which is filed
with the Securities and Exchange Commission (the "SEC") and is
accessible on the SEC's website at www.sec.gov. Accordingly, there
are or will be important factors that could cause actual outcomes
or results to differ materially from those indicated in these
statements. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements
that are included in this press release and in Hilton's filings
with the SEC. The Company undertakes no obligation to publicly
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240122110695/en/
Jill Chapman Investor Contact +1 703 883 1000
jill.chapman@hilton.com
Kent Landers Media Contact +1 703 883 3246
kent.landers@hilton.com
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