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Actionable news in HLT: HILTON WORLDWIDE HOLDINGS Inc,

Hilton Worldwide Holdings: 7930 Jones Branch Drive Christian Charnaux

The following excerpt is from the company's SEC filing.

McLean, VA 22102

+1 703 883 5205

www.hiltonworldwide.com

Media Contact

Chris Brooks

+1 703 883 5808

Hilton Worldwide Reports

First Quarter

Results, Exceeds High End of Adjusted EBITDA Guidance

MCLEAN, VA (April 27,

) - Hilton Worldwide Holdings Inc. ("Hilton," "Hilton Worldwide" or the "Company") (NYSE: HLT) today reported its

first quarter

results. Highlights include:

EPS, adjusted for special items, for the

42 percent

increase from the same period in

; without adjustments, EPS was

Net i ncome attributable to Hilton stockholders for the

$309 million

, an increase of

$159 million

Adjusted EBITDA for the

increased

9 percent

$653 million

, and Adjusted EBITDA margin increased

basis points

System-wide comparable RevPAR increased

2.1 percent

on a currency neutral basis from the same period in

Management and franchise fees for the

5 percent

$409 million

Net unit growth was 6,500 rooms in the

, a 16 percent increase from the same period in

Approved 26,000 new rooms for development during the

14 percent

, growing Hilton's development pipeline to

hotels, consisting of

281,000

As previously disclosed, registration statements for planned spin-offs of real estate and timeshare businesses expected to be filed during the second quarter

Announced CEO and CFO appointments for planned REIT in separate press release this morning

Overview

For the

compared to

three months ended March 31, 2015

, and EPS, adjusted for special items, was

. Special items in the first quarter of 2016 were primarily related to a

$153 million

net change in unrecognized tax benefits. Adjusted EBITDA increased

, compared to

$599 million

, and net income attributable to Hilton stockholders was

$150 million

Christopher J. Nassetta, President & Chief Executive Officer of Hilton Worldwide, said, "We are pleased with our start to the year with Adjusted EBITDA exceeding the high end of guidance. We continue to organically expand the global presence of our 13 distinct, market-leading brands, with over 9,200 new rooms opening in the quarter, including openings in two new countries, resulting in net unit growth that was 16 percent higher than the first quarter of last year. Construction started on the first Tru by Hilton in the quarter and we now have 48 in the pipeline and 170 more committed or in progress, representing the fastest growth of a new brand in Company history."

Segment Highlights

Management and Franchise

Management and franchise fees were

compared to the same period in

. RevPAR at comparable managed and franchised hotels in the

1.9 percent

on a currency neutral basis (a 0.9 percent increase in actual dollars) compared to the same period in

. The increase in RevPAR at comparable managed and franchised hotels and addition of new units have yielded continued fee growth during the

Ownership

Revenues from the ownership segment were

$974 million

, and ownership segment Adjusted EBITDA was

$207 million

, an increase of 13 percent

. Adjusted EBITDA margin

(1)(2)

increased 187 basis points. RevPAR at comparable hotels in the ownership segment increased

3.1 percent

on a currency neutral basis (a 1.4 percent increase in actual dollars) in the

____________

Excluding $7 million of Adjusted EBITDA in the first quarter of 2015 related to the Hilton Sydney.

Calculated as ownership segment Adjusted EBITDA divided by ownership segment revenues. Excluding $20 million of revenues in the first quarter of 2015 related to the Hilton Sydney.

Timeshare

Timeshare segment revenues for the

$326 million

and timeshare Adjusted EBITDA was

$95 million

28 percent

, compared to the same period in

. Sales revenue on owned inventory increased

$23 million

, while commissions recognized from the sale of third-party developed timeshare intervals decreased

$25 million

, resulting from a successful launch of a new third-party developed product in December 2014.

During the

64 percent

of intervals sold were developed by third parties. Hilton Worldwide's overall supply of timeshare intervals as of

March 31, 2016

was approximately

130,000

intervals, or over

years of sales at current pace, of which

110,000

85 percent

, were developed by third parties.

Development

Hilton Worldwide opened 67 hotels consisting of over 9,200 rooms, of which nearly

25 percent

were conversions from non-Hilton brands, and achieved net unit growth of 6,500 rooms during the

. During the first quarter of 2016, Hilton Worldwide grew its global footprint to 102 countries and territories with the openings of the Hilton Garden Inn Tanger City Center in Tangier, Morocco and the DoubleTree by Hilton Yerevan City Centre in Yerevan, Armenia.

As of

, Hilton Worldwide had the largest rooms pipeline in the lodging industry

rooms at

hotels throughout

countries and territories, including

countries and territories where Hilton Worldwide does not currently have any open hotels.

145,000

rooms, or more than half of the pipeline, were located outside of the

United States. Additionally,

139,000

rooms, or approximately half of the pipeline, were under construction. At over 19 percent, Hilton Worldwide also has the largest share of rooms under construction globally

. Including all agreements approved but not signed, Hilton Worldwide's pipeline totaled nearly 300,000 rooms, which will be almost entirely funded by third-party owner investment.

Source: STR Global New Development Pipeline (March 2016).

Balance Sheet and Liquidity

Total cash and cash equivalents were

$973 million

$281 million

of restricted cash and cash equivalents. As of

, Hilton had

$10.0 billion

of long-term debt with a weighted average interest rate of 4.3 percent. No borrowings were outstanding under the $1.0 billion revolving credit facility as of

, Hilton Worldwide paid a quarterly cash dividend of

per share on shares of its common stock, for a total of

$69 million

. Hilton Worldwide announced a regular quarterly cash dividend of $0.07 per share of common stock to be paid on or before June 17, 2016 to stockholders of record of its common stock as of the close of business on May 20, 2016.

Outlook

Hilton Worldwide will disclose financial and other details of the planned spin-offs of the real estate and timeshare businesses in filings with the Securities and Exchange Commission ("SEC"), which are expected to be filed during the second quarter. The transactions are subject to execution of intercompany agreements, arrangement of adequate financing facilities, the effectiveness of the registration statements, final approval by Hilton's Board of Directors and other customary conditions. The spin-off transactions will not require a shareholder vote. The spin-offs are expected to be completed by year end but there can be no assurance regarding the ultimate timing of the spin-offs or that either or both of the spin-offs will ultimately occur. The following outlook does not include the effects of the spin-offs, including potential transaction costs.

Full Year

System-wide RevPAR is expected to increase between

3.0 percent

5.0 percent

on a comparable and currency neutral basis, with ownership segment RevPAR expected to increase between

on a comparable and currency neutral basis, as compared to

Adjusted EBITDA is projected to be between

$3,020 million

$3,100 million

Management and franchise fees are projected to increase approximately

7 percent

Timeshare segment Adjusted EBITDA is projected to be between

$370 million

$390 million

Corporate expense and other is projected to be between

$240 million

$250 million

Diluted EPS, adjusted for special items, is projected to be between

Capital expenditures, excluding timeshare inventory, are expected to be between

$400 million

$450 million

Net unit growth is expected to be approximately

rooms to

50,000

rooms.

Cash available for debt reduction and capital return is expected to be between

$800 million

$1 billion

Second Quarter

on a comparable and currency neutral basis compared to the second quarter of

Adjusted EBITDA is expected to be between

$790 million

$810 million

Management and franchise fees are expected to increase approximately

Conference Call

Hilton Worldwide will host a conference call to discuss

results on April 27,

at 10:00 a.m. Eastern Time. Participants may listen to the live webcast by logging onto the Hilton Worldwide Investor Relations website at

http://ir.hiltonworldwide.com/events-and-presentations

. A replay and transcript of the webcast will be available within 24 hours after the live event at

http://ir.hiltonworldwide.com/financial-reporting/quarterly-...

Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States or 1-412-317-6061 internationally. Please use the conference ID 5025845. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-877-344-7529 or 1-412-317-0088 using the replay access code 10083376.

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, financial results, liquidity and capital resources, the planned spin-offs and other non-historical statements, including the statements in the "Outlook" section of this press release. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "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, competition for hotel guests, management and franchise agreements and timeshare sales, risks related to doing business with third-party hotel owners, Hilton's significant investments in owned and leased real estate, performance of Hilton's information technology systems, growth of reservation channels outside of Hilton's system, risks of doing business outside of the United States, risks related to Hilton's proposed spin-offs 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 the Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC, as such factors may be updated from time to time in Hilton's periodic filings with the SEC, which are accessible on the SEC's website at

. 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 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.

Non-GAAP Financial Measures

The Company refers to certain non-GAAP financial measures in this press release, including net income and EPS, adjusted for special items, Adjusted EBITDA and Adjusted EBITDA margin, Net debt and Net debt to Adjusted EBITDA ratio. Please see the schedules to this press release including the "Definitions" section for additional information and reconciliations of such non-GAAP financial measures.

About Hilton Worldwide

Hilton Worldwide (NYSE: HLT) is a leading global hospitality company, comprised of more than 4,660 managed, franchised, owned and leased hotels and timeshare properties, with nearly 765,000 rooms in 102 countries and territories. For 96 years, Hilton Worldwide has been dedicated to continuing its tradition of providing exceptional guest experiences. The Company’s portfolio of 13 world-class global brands includes Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio - A Collection by Hilton, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations. The Company also manages an award-winning customer loyalty program, Hilton HHonors®. Hilton HHonors members who book directly through preferred Hilton channels have access to benefits including free standard Wi-Fi, as well as digital amenities that are available exclusively through the industry-leading Hilton HHonors app, where HHonors members can check-in, choose their room and access their room using a Digital Key. Visit

news.hiltonworldwide.com

for more information and connect with Hilton Worldwide at

www.facebook.com/hiltonworldwide

www.youtube.com/hiltonworldwide

www.flickr.com/hiltonworldwide

www.linkedin.com/company/hilton-worldwide

www.instagram.com/hiltonworldwide

HILTON WORLDWIDE HOLDINGS INC.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

Condensed Consolidated Statements of Operations

Segment Adjusted EBITDA

Comparable and Currency Neutral System-wide Hotel Operating Statistics

Management and Franchise Fees and Other Revenues

Timeshare Revenues and Operating Expenses

Hotel and Timeshare Property Summary

Capital Expenditures

Non-GAAP Financial Measures Reconciliations

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

Three Months Ended

Owned and leased hotels

Management and franchise fees and other

Other revenues from managed and franchised properties

Total revenues

Depreciation and amortization

Impairment loss

General, administrative and other

Other expenses from managed and franchised properties

Total expenses

Gain on sales of assets, net

Operating income

Interest income

Interest expense

Equity in earnings from unconsolidated affiliates

Loss on foreign currency transactions

Other loss, net

Income before income taxes

Income tax benefit (expense)

Net income attributable to noncontrolling interests

Weighted average shares outstanding

Earnings per share

Cash dividends declared per share

SEGMENT ADJUSTED EBITDA

(unaudited, in millions)

Corporate and other

(2)(3)

Includes unconsolidated affiliate Adjusted EBITDA.

See "Non-GAAP Financial Measures Reconciliations—Adjusted EBITDA and Adjusted EBITDA Margin" for a reconciliation of net income attributable to Hilton stockholders to Adjusted EBITDA.

Adjusted EBITDA included the following intercompany charges that were eliminated in the condensed consolidated financial statements:

(in millions)

Rental and other fees

Management, royalty and intellectual property fees

Licensing fee

Laundry services

Intersegment fees elimination

Represents charges to the timeshare segment by the ownership segment.

Represents fees charged to consolidated owned and leased properties by the management and franchise segment.

Represents fees charged to the timeshare segment by the management and franchise segment.

Represents charges to consolidated owned and leased properties for services provided by Hilton Worldwide's wholly owned laundry business. Revenues from the laundry business are included in other revenues.

Represents other intercompany charges, which are a benefit to the ownership segment and a cost to corporate and other.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY REGION

Three Months Ended March 31,

Occupancy

vs. 2015

Americas

140.75

100.24

Europe

137.02

Middle East & Africa

169.03

108.46

Asia Pacific

148.30

141.62

BY BRAND

327.73

219.63

264.81

169.65

164.53

115.36

271.56

207.43

132.51

159.84

121.92

127.98

116.69

132.59

109.32

BY SEGMENT

182.31

134.01

197.50

154.97

International (non-U.S.)

162.37

110.20

137.69

137.88

136.89

141.64

101.16

141.53

Includes owned and leased hotels, as well as hotels owned or leased by entities in which Hilton owns a noncontrolling interest.

MANAGEMENT AND FRANCHISE FEES AND OTHER REVENUES

(unaudited, dollars in millions)

Increase / (Decrease)

Management fees:

Base fees

Incentive fees

Total base and incentive fees

Other management fees

Total management fees

Franchise fees

Total management and franchise fees

(1)(2)(4)(5)

Management and franchise fees and other revenues

Includes management, royalty and intellectual property fees of

$27 million

$26 million

, respectively. These fees are charged to consolidated owned and leased properties and were eliminated in the condensed consolidated financial statements.

$6 million

$4 million

Includes timeshare homeowners' association, early termination, product improvement plan and other fees.

Includes a licensing fee earned from the timeshare segment of

$10 million

$9 million

Includes charges to consolidated owned and leased properties for services provided by a wholly owned laundry business of

$2 million

for each of the

TIMESHARE REVENUES AND OPERATING EXPENSES

Timeshare sales

Resort operations

Financing and other

HOTEL AND TIMESHARE PROPERTY SUMMARY

Owned / Leased

Managed

Franchised

Properties

Americas (excluding U.S.)

23,090

23,723

53,350

100,163

15,111

17,925

15,197

42,312

13,966

16,652

26,043

32,382

66,409

78,619

10,203

13,659

11,469

12,434

40,265

51,942

79,026

79,746

188,129

194,437

10,798

39,615

42,302

Lodging

58,326

156,955

542,065

757,346

164,357

764,748

Includes hotels owned or leased by entities in which Hilton owns a noncontrolling interest.

CAPITAL EXPENDITURES

Hotel property and equipment

Timeshare property and equipment

Corporate and other property and equipment

Total capital expenditures for property and equipment

Software capitalization costs

Contract acquisition costs

Expenditures for timeshare inventory net of costs of sales

Timeshare capital expenditures for inventory additions were

$32 million

$41 million

, respectively, and timeshare costs of sales were

$29 million

HILTON WORLDWIDE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

NET INCOME AND EPS, ADJUSTED FOR SPECIAL ITEMS

(unaudited, in millions, except per share data)

Net income attributable to Hilton stockholders, as reported

Diluted EPS, as reported

Special items:

Costs incurred for planned spin-offs

Share-based compensation expense

Asset acquisitions and dispositions

Tax-related adjustments

Total special items before tax

Income tax benefit (expense) on special items

Total special items after tax

Net income, adjusted for special items

This amount includes expense that was recognized in general, administrative and other expenses related to the planned spin-offs of the real estate and timeshare businesses expected later this year.

This amount includes expense that was recognized in general, administrative and other expenses related to the share-based compensation prior to and in connection with the initial public offering. Amounts exclude share-based compensation expense related to awards issued under the Hilton Worldwide Holdings Inc. 2013 Omnibus Incentive Plan.

The amount for the

relates to severance costs from the sale of the Waldorf Astoria New York. The amount for the

relates primarily to the net gain on the sale of the Waldorf Astoria New York, as well as amounts recognized related to the sale of the Waldorf Astoria New York and properties acquired from the proceeds of that sale. The amounts are detailed as follows:

Gain on sale of the Waldorf Astoria New York, net of transaction costs

Severance costs

Acquisition-related transaction costs

Reduction of unamortized management contract intangible asset related to properties that were managed by Hilton prior to acquisition

Reduction of remaining deferred issuance costs related to the mortgage loan secured by the Waldorf Astoria New York

relates to the net change in unrecognized tax benefits. On March 31, 2015, a foreign jurisdiction where the Company had deferred tax assets reduced the statutory rate resulting in a reduction to the deferred tax asset and a corresponding recognition of income tax expense of $6 million, including $2 million attributable to noncontrolling interests.

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

Income tax expense (benefit)

Interest expense, income tax and depreciation and amortization included in equity in earnings from unconsolidated affiliates

FF&E replacement reserve

Other adjustment items

Represents costs related to the acquisitions of property and equipment and a loss related to a disposition of property and equipment.

Represents adjustments for reorganization costs, severance and other items.

Total revenues, as reported

Less: other revenues from managed and franchised properties

(1,071

Total revenues, excluding other revenues from managed and franchised properties

NET DEBT AND NET DEBT TO ADJUSTED EBITDA RATIO

December 31,

Long-term debt, including current maturities

Add: unamortized deferred financing costs

Long-term debt, including current maturities and excluding unamortized deferred financing costs

10,059

10,041

Add: Hilton's share of unconsolidated affiliate debt, excluding unamortized deferred financing costs

Less: cash and cash equivalents

Less: restricted cash and cash equivalents

Year Ended

Interest expense, income tax and depreciation and amortization included in equity in earnings from unconsolidated affiliates

Other loss (gain), net

Trailing twelve months ("TTM")

is calculated as

plus year ended December 31,

less

Represents gains and losses on the acquisitions and dispositions of property and equipment and lease restructuring transactions.

Represents adjustments for reorganization costs, severance, offering costs and other items.

OUTLOOK: ADJUSTED EBITDA

FORECASTED 2016

Three Months Ending June 30, 2016

Low Case

High Case

Year Ending December 31, 2016

OUTLOOK: NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS

Net income attributable to Hilton stockholders, before special items

Diluted EPS, before special items

Asset disposition

Income tax expense on special items

This amount relates to severance costs from the sale of the Waldorf Astoria New York.

This amount relates to the net change in unrecognized tax benefits.

DEFINITIONS

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Earnings before interest expense, taxes and depreciation and amortization ("EBITDA"), presented herein, is a financial measure not recognized under United States ("U.S.") generally accepted accounting principles ("GAAP") that reflects net income attributable to Hilton stockholders, excluding interest expense, a provision for income taxes and depreciation and amortization. The Company considers EBITDA to be a useful measure of operating performance, due to the significance of the Company's long-lived assets and level of indebtedness.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) asset dispositions for both consolidated and unconsolidated investments; (ii) foreign currency transactions; (iii) debt restructurings/retirements; (iv) non-cash impairment losses; (v) furniture, fixtures and equipment ("FF&E") replacement reserves required under certain lease agreements; (vi) reorganization costs; (vii) share-based compensation expense; (viii) severance, relocation and other expenses; and (ix) other items.

Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of total revenues, excluding other revenues from managed and franchised properties.

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company's definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies.

The Company believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors about the Company and its financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are among the measures used by the Company's management team to evaluate its operating performance and make day-to-day operating decisions; and (ii) EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in the industry.

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss), cash flow or other methods of analyzing results as reported under U.S. GAAP.

Net Income and EPS, Adjusted for Special Items

Net income and EPS, adjusted for special items, are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company's definition of Net income and EPS, adjusted for special items, may not be comparable to similarly titled measures of other companies.

Net income and EPS, adjusted for special items, are included to assist investors in performing meaningful comparisons of past, present and future operating results and as a means of highlighting the results of the Company's ongoing operations.

Net Debt

Net debt, presented herein, is a non-GAAP financial measure that the Company uses to evaluate its financial leverage. Net debt is calculated as (i) long-term debt, including current maturities and excluding unamortized deferred financing costs; (ii) the Company's share of investments in affiliate debt, excluding unamortized deferred financing costs; reduced by (a) cash and cash equivalents; and (b) restricted cash and cash equivalents.

The Company believes Net debt provides useful information about its indebtedness to investors as it is frequently used by securities analysts, investors and other interested parties to compare the indebtedness of companies. Net debt should not be considered as a substitute to debt presented in accordance with U.S. GAAP. Net debt may not be comparable to a similarly titled measure of other companies.

Net Debt to Adjusted EBITDA Ratio

Net debt to Adjusted EBITDA ratio, presented herein, is a non-GAAP financial measure and is included as it is frequently used by securities analysts, investors and other interested parties to compare the financial condition of companies. Net debt to Adjusted EBITDA ratio should not be considered as an alternative to measures of financial condition derived in accordance with U.S. GAAP and it may not be comparable to a similarly titled measure of other companies.

Comparable Hotels

The Company defines comparable hotels as those that: (i) were active and operating in the Company's system for at least one full calendar year as of the end of the current period, and open January 1st of the previous year; (ii) have not undergone a change in brand or ownership during the current or comparable periods reported; and (iii) have not sustained substantial property damage, business interruption, undergone large-scale capital projects or for which comparable results are not available.

Of the

hotels in the Company's system as of

were classified as comparable hotels. The

non-comparable hotels included

properties, or approximately

four percent

of the total hotels in the system, that were removed from the comparable group during the last twelve months because they sustained substantial property damage, business interruption, underwent large-scale capital projects or comparable results were not available.

Occupancy

Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate levels as demand for hotel rooms increases or decreases.

Average Daily Rate ("ADR")

ADR represents hotel room revenue divided by total number of room nights sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the Company is able to generate by type of customer, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described above.

Revenue per Available Room ("RevPAR")

The Company calculates RevPAR by dividing hotel room revenue by room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of the Company's performance as it provides a metric correlated to two primary and key drivers of operations at a hotel or group of hotels: occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods for comparable hotels.

References to RevPAR, ADR and occupancy throughout this press release are presented on a comparable basis and references to RevPAR and ADR are presented on a currency neutral basis (all periods use the same exchange rates), unless otherwise noted.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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