Hilton Celebrates Growth in 2020 and Looks Forward to Continued Development in 2021
This week, Hilton Worldwide Holdings Inc. reported its fourth-quarter and full-year 2020 results, which had both highs and lows for the company. For example, its net loss was $225 million for the fourth quarter and $720 million for the full year, while its adjusted EBITDA for the fourth quarter was $204 million and $842 million for the full year.
Its system-wide comparable revenue per available room decreased 59.2% and 56.7% on a currency-neutral basis for the fourth quarter and the full year from the same periods in 2019. However, Hilton also approved 18,700 new rooms for development during the fourth quarter, bringing its development pipeline to 397,000 rooms as of Dec. 31, 2020.
The company also opened 22,900 rooms in its fourth quarter, which allowed Hilton to reach the 1 million room milestone and contributed to 47,400 net additional rooms in its system for the full year. This gave it approximately 5.1% net unit growth from Dec. 31, 2019. “Our fourth-quarter results were largely in line with our expectations as rising COVID-19 cases and tightening travel restrictions disrupted the positive momentum we saw throughout the summer and fall,” President and CEO Christopher J. Nassetta said.
He adds that Hilton has continued its growth momentum into 2021 with the opening of its 900th Hilton Garden Inn and the conversion of its Ocean Santa Monica, which marked the debut of its LXR Hotels & Resorts brand in the United States. “We expect our industry-leading brands to continue driving new development and conversion opportunities, enabling us to further grow our network and capture a disproportionate share of demand as travel resumes,” Nassetta added.
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