Hilton RevPAR is up 104% year-over-year; adjusted EBITDA is up 151%

By Devika Patel

Knoxville, Tenn., Feb. 18 – Hilton Worldwide Holdings Inc. more than doubled its RevPar year-over-year in 2021 and adjusted EBITDA increased 151%.

The company saw a large increase in demand for travel and tourism during 2021 and management expects recovery to speed up in 2022, especially in leisure travel, driven by pent-up demand and excess consumer savings.

“We made significant progress in our recovery throughout 2021,” president and chief executive officer Christopher J. Nassetta said on the company’s fourth quarter and year ended Dec. 31, 2021 earnings conference call on Wednesday.

“We saw a meaningful increase in demand for travel and tourism.

“RevPAR increased 104% year-over-year and adjusted EBITDA was up 151%.

“RevPAR was roughly 87% of 2019 levels,” Nassetta said.

This year looks even better. Management expects a quick recovery across all segments, driven by pent-up demand and consumer savings.

Although Omicron affected the first quarter, management does not expect the virus to have an impact on the remainder of 2022.

“We remain optimistic about accelerated recovery across all segments throughout 2022,” Nassetta said.

“We anticipate strong leisure trends to continue again this year, driven by pent-up demand and nearly $2.5 trillion of excess consumer savings.

“Omicron-related disruption was largely contained to the first quarter of 2022 with most events rescheduled for later in the year,” Nassetta said.

The company is so confident in its recovery it is now considering reinstating its capital return program.

“We’re proud of the financial flexibility we demonstrated through the pandemic and remain confident in our ability to continue to be an engine of opportunity and growth as we look to reinstate our capital return program,” president of global development and chief financial officer Kevin Jacobs said on the call.

Adjusted EBITDA was $512 million for the fourth quarter and $1,629,000,000 for the full year.

Hilton ended the year with $8.9 billion of long-term debt and $1.5 billion of total cash and cash equivalents.

Hilton is a McLean, Va.-based hospitality company.

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