(Reuters) – Hotel operator Hilton Worldwide Holdings Inc said on Tuesday it would return to distributing profits to shareholders after reporting better-than-expected quarterly profit on the back of improved tourism.
The sector benefited from the recovery in travel to the United States, which exceeded pre-COVID-19 levels, with positive consequences for airline activity and hotel occupancy rates.
Hilton’s comparable RevPAR, or revenue per available room, rose 80.5% for the quarter as travelers spent more on travel, dining and hotel stays, despite rising prices.
This renewed interest prompted Hilton to resume share buybacks in March and plan to pay a cash dividend of 15 cents per share in the second quarter.
“Our results for the quarter (…) allowed us to begin returning capital to shareholders earlier than expected,” Chief Executive Christopher Nassetta said.
The Virginia-based company posted first-quarter revenue of $1.72 billion, close to the Refinitiv consensus ($1.73 billion).
On an adjusted basis, it posted earnings of 71 cents per share, above analysts’ average expectation of 65 cents per share.
The company is targeting adjusted earnings per share of between $3.77 and $4.02 for 2022, below analysts’ expectations of $4.10 per share.
(Report by Kannaki Deka in Bangalore; French version Dina Kartit, edited by Jean-Michel Bélot)
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