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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 Third Quarter Results, Exceeds High End of Guidance and Raises Full Year Outlook for Adjusted EBITDA

MCLEAN, VA (October 28, 2015) - Hilton Worldwide Holdings Inc. ("Hilton," "Hilton Worldwide" or the "Company") (NYSE: HLT) today reported its

third quarter

results. Highlights include:

EPS, adjusted for special items, for the

28 percent

increase from the same period in

; without adjustments, EPS wa s

Net income attributable to Hilton stockholders for the

$279 million

, an increase of $96 million from the same period in 2014

Adjusted EBITDA for the

increased

13 percent

$758 million

, and Adjusted EBITDA margin increased

basis points

System-wide comparable RevPAR increased

5.8 percent

on a currency neutral basis from the same period in

Management and franchise fees for the

14 percent

$438 million

Net unit growth was 13,000 rooms in the

, a 16 percent increase from the same period in

Approved 26,000 new rooms for development during the

, a 29 percent increase from the same period in 2014, growing Hilton's development pipeline to

hotels, consisting of

260,000

Reduced long-term debt by

$350 million

; 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

$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

compared to

three months ended September 30, 2014

, and EPS, adjusted for special items, was

. Adjusted EBITDA increased

, compared to

$669 million

, and net income attributable to Hilton stockholders was

$183 million

nine months ended September 30, 2014

15 percent

$2,134 million

$1,851 million

$590 million

$515 million

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."

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

on a currency neutral basis (a 3.7 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 strong fee growth during the third quarter of 2015.

Ownership

Revenues from the ownership segment were

$1,089 million

, and ownership segment Adjusted EBITDA was

$281 million

, an increase of 10 percent

. Adjusted EBITDA margin

increased 186 basis points

. RevPAR at comparable hotels in the ownership segment increased

on a currency neutral basis (a 0.4 percent increase in actual dollars) in the

____________

Excluding $7 million of Adjusted EBITDA and $22 million of revenues in the third quarter of 2014 related to the Hilton Sydney.

Calculated as ownership segment Adjusted EBITDA divided by ownership segment revenues.

Timeshare

Timeshare segment revenues for the

$334 million

, and timeshare Adjusted EBITDA was

$99 million

24 percent

. Overall timeshare sales volume increased 19 percent in the third quarter of 2015, compared to the same period in 2014, driven by increased tour flow of nearly 12 percent and increased net volume per guest of over 6 percent. Commissions recognized from the sale of third-party developed timeshare intervals increased

$42 million

, resulting from higher sales volume, and sales revenue on owned inventory decreased

$11 million

During the three and

62 percent

and 66 percent of intervals sold were developed by third parties, respectively. Hilton Worldwide's overall supply of timeshare intervals as of

was approximately

131,000

intervals, or about

years of sales at current pace, of which

109,000

83 percent

, were developed by third parties.

Development

Hilton Worldwide opened 91 hotels and achieved net unit growth of 13,000 rooms during the

, over 25 percent of which were conversions from non-Hilton brands, making Hilton the largest global hotel company

as of

September 30, 2015

As of

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

, with

rooms at

hotels throughout

countries and territories, including 33 countries and territories where Hilton Worldwide does not currently have any open hotels. Approximately

136,000

rooms, or

53 percent

of the pipeline, were located outside of the United States. All of the development pipeline is in the capital light management and franchise segment, and over half, or

130,000

rooms, 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 approximately 270,000 rooms.

Source: Smith Travel Research, Inc. ("STR") Global Census, October 2014 (adjusted to September 2015).

Source: STR Global New Development Pipeline (September 2015).

Balance Sheet and Liquidity

, Hilton made prepayments of

on its senior secured term loan facility, using the net proceeds from the sale of the Hilton Sydney. In October 2015, Hilton made an additional

prepayment on its senior secured term loan facility.

, Hilton had

$10.1 billion

of outstanding indebtedness with a weighted average interest rate of 4.2

percent, excluding

$755 million

of non-recourse debt.

Total cash and cash equivalents were

$904 million

$276 million

of restricted cash and cash equivalents. No borrowings were outstanding under the $1.0 billion revolving credit facility as of

In September 2015, Hilton Worldwide paid its first quarterly cash dividend of

per share on shares of its common stock, for a total of $69 million.

Full Year 2015

System-wide RevPAR is expected to increase between

5.0 percent

6.5 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

, an increase of $10 million at the midpoint.

Management and franchise fees are projected to increase approximately

Timeshare segment Adjusted EBITDA is projected to be between

$335 million

Corporate expense and other is projected to be flat to moderately down compared to prior year.

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

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

$375 million

$400 million

Net unit growth is expected to be approximately

40,000

Fourth Quarter 2015

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

, with U.S. RevPAR growth consistent to modestly better than the third quarter, and international RevPAR growth meaningfully lower due to tougher comparisons.

Adjusted EBITDA is expected to be between

$706 million

$736 million

Management and franchise fees are expected to increase approximately

Full Year 2016

For 2016, system-wide RevPAR is expected to increase between

4.0 percent and 6.0 percent on

a comparable and currency neutral basis compared to 2015. Given Hilton Worldwide's strong development pipeline, unit growth should accelerate in 2016 as its global system of rooms is expected to expand by

45,000 rooms to 50,000 rooms, on a net basis.

Conference Call

Hilton Worldwide will host a conference call to discuss

results on October 28, 2015 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/investors/events-and-presentat...

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

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

Alternatively, participants may listen to the live call by dialing 1-877-201-0168 in the United States or 1-647-788-4901 internationally. Please use the conference ID 42576772. 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 1-855-859-2056 or 1-404-537-3406 using the Conference ID 42576772.

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 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," "approximately," "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...


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