Hilton Hotels Reports Mixed Q1 Results; Q2, FY22 EPS Outlook Misses Consensus

Hilton Hotels Corp HLT reported first-quarter FY22 sales growth of 96.9% year-on-year to $1.72 billion, missing the consensus of $1.76 billion.
Franchise and licensing fees revenue rose 70.7% Y/Y, and the Owned and leased hotels revenue increased 167.8%.
The occupancy rate for the quarter was 61.8% in the U.S., 47.9% in Europe, and 66.2% in Middle East & Africa. In total, the System-wide occupancy rate was 58.1%.
On a currency-neutral basis, System-wide comparable RevPAR increased 80.5% Y/Y but decreased 17% versus the same period in 2019.
Total expenses for the quarter rose 58.5%. The operating margin was 21.4%, and operating income for the quarter was $369 million versus $21 million last year.
Adjusted EBITDA of $448 million increased 126.3% Y/Y. Adjusted EBITDA margin expanded 1110 basis points to 66.1%.
Adjusted EPS of $0.71 beat the analyst consensus of $0.64.
The company expects an FY22 capital return of $1.4 billion - $1.8 billion.
“Our results in the quarter, coupled with our confidence in continued recovery throughout the year, enabled us to begin returning capital to shareholders earlier than we had anticipated,” said CEO Christopher J. Nassetta.
Outlook: Hilton expects FY22 adjusted EPS of $3.77 - $4.02 versus the Street view of $4.10.
HLT sees Q2 adjusted EPS of $0.98 - $1.03, against the consensus of $1.07.
Price Action: HLT shares closed higher by 0.21% at $155.62 on Monday.

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