Hilton posts quarterly profit on recovery in leisure travel demand

Rising vaccination rates, reopening economies and pent-up travel demand are expected to help hotel operators

  
Hilton Midtown hotel is seen on 52nd street following the outbreak of coronavirus disease (COVID-19), in New York City, U.S., March 18, 2020.

Hilton Midtown hotel is seen on 52nd street following the outbreak of coronavirus disease (COVID-19), in New York City, U.S., March 18, 2020.

Reuters/Jeenah Moon

U.S. hotel operator Hilton Worldwide Holdings Inc reported a quarterly profit on Thursday, compared to a year-ago loss, as easing pandemic-related curbs led to a recovery in leisure travel.

Rising vaccination rates, reopening economies and pent-up travel demand are expected to help hotel operators like Hilton and Marriott International Inc reach occupancy rates similar to pre-pandemic levels in the coming quarters.

"While the pace of recovery varies by region, we expect continued strength in leisure demand and further upticks in business travel to drive continued resurgence in the back half of the year", Chief Executive Officer Christopher Nassetta said.

The company reported a 233.8% rise in comparable RevPAR - a key performance measure for the hotel industry - for the quarter.

The company reported net income attributable to Hilton stockholders of $130 million, or 46 cents per share, in the second quarter ended June 30, compared to a net loss of $430 million, or $1.55 per share, a year earlier.

Revenue rose 135.6% to $1.33 billion.

(Reporting by Ashwini Raj in Bengaluru; Editing by Shailesh Kuber) ((Ashwini.Raj@thomsonreuters.com;))


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