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Thursday, Feb 2, 2023
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Hilton’s Second-Quarter Profit Rises

Hilton Hotels Corp. on Wednesday said its second-quarter earnings more than doubled, boosted by gains related to asset sales, a favorable tax benefit and higher hotel revenue.


The Beverly Hills-based hotelier reported net income of $202 million (49 cents per diluted share) for the second quarter ended June 30, compared with $75 million (19 cents) for the like period a year earlier. Revenue rose 10 percent to $1.2 billion from $1.1 billion in the comparable period of the prior year.


Analysts expected a second-quarter profit of 24 cents per share on revenue of $1.2 billion.


Hilton said second-quarter results included a 22-cent-per-share gain from asset sales, a tax benefit and the closure of various IRS audits.


Revenue per available room rose 9.4 percent on a comparable basis at owned hotels, and is expected to rise 9.5 percent to 10.5 percent for the full year, the company said.


Comparable-owned hotel occupancy increased 2.2 points to 80.1 percent, while average daily rate increased 6.4 percent to $168.99. As of June 30, the Hilton system consisted of 2,311 properties and 364,374 rooms. The company said it expects to add 160 to 170 hotels and 21,000 to 24,000 rooms to its system throughout the year.


Looking ahead, Hilton raised its full-year earnings forecast to $1.05 to $1.07 a share, compared with previous guidance of 78 cents to 80 cents a share. Excluding one-time items, it expects a profit of 82 cents to 84 cents a share. The company anticipates full-year revenues of $4.4 billion to $4.5 billion.

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