Reuters

(Reuters)

Hilton's Quarterly Profit More Than Doubles

Industries Reuters

Hilton Worldwide Holdings, the owner of the Waldorf Astoria hotel chain, reported a quarterly profit that was more than double that of a year earlier, helped by tax benefits and higher room rates.

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The company's earnings per share and revenue also handily beat Wall Street's estimates.

The company, which said in February it would spin off most of its assets into a real estate investment trust, reiterated its forecast for full-year earnings and revenue per available room (RevPAR).

Hilton said it expected 2016 RevPAR to increase by 3-5 percent, excluding the impact of exchange rates, and forecast earnings of 92 cents to 98 cents per share.

RevPAR is a key metric of hotel health, calculated by multiplying a hotel's average daily room rate by occupancy rate.

Hilton's average daily rate for its rooms rose 2.5 percent to $141.62 in the first quarter ended March 31, while occupancy fell by 0.3 percent to 70.2 percent.

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The net income attributable to stockholders rose to $309 million, or 31 cents per share, in the latest quarter from $150 million, or 15 cents per share, a year earlier.

Excluding tax benefits of $153 million, Hilton earned 17 cents per share in the latest quarter.

Revenue rose about 6 percent to $2.75 billion.

Analysts on average had expected first-quarter earnings of 16 cents per share on revenue of $2.72 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Arunima Banerjee and Ankit Ajmera in Bengaluru; Editing by Anil D'Silva)