Hotel and resort operator Hilton Worldwide Holdings (HLT) - Get Report posted better-than-expected third-quarter earnings on Wednesday even as the pandemic continued to inflict collateral damage on the broader leisure and travel industry, particularly hotels.
McLean, Va.-based Hilton posted adjusted earnings of $17 million, or 6 cents a share, vs. $301 million, or $1.05 a share, in the comparable year-ago period. Analysts polled by FactSet had been expecting a loss of 4 cents a share.
Not including various costs and other adjustments, Hilton posted a net loss of $81 million, or 28 cents a share. Revenue came in at $933 million, down from $2.4 billion a year ago and below the $963.5 million expected by analysts polled by FactSet.
Earnings before income, taxes, depreciation and amortization on an adjusted basis were $224 million vs. $605 million in the year-earlier period. Total cash and cash equivalents were $3.47 billion as of September 30, including $63 million of restricted cash and cash equivalents, Hilton said.
Hilton President and CEO Christopher Nassetta said the hotel chain's third-quarter results showed "meaningful improvement" over the second quarter, with occupancy rising more than 20 percentage points.
"The vast majority of our properties around the world are now open and have gradually begun to recover from the limitations that the Covid-19 pandemic has imposed on the travel industry," he said. "While a full recovery will take time, we are well positioned to capture rising demand and execute on growth opportunities."
Hilton said it opened 133 new hotels in the third quarter totaling 17,100 rooms, and achieved net unit growth of more than 14,800 rooms. Notable openings in the quarter included the Conrad Punta de Mita in Mexico and the Hilton Beijing Tongzhou in China, as well as the Motto by Hilton Washington DC City Center, the first hotel under the Motto by Hilton brand.
Other notable additions to Hilton's development pipeline included the Conrad Rabat Arzana in Morocco and the Waldorf Astoria Monarch Beach Resort & Club in California.
As of Sept. 30, Hilton's development pipeline totaled approximately 2,640 hotels consisting of more than 408,000 rooms in 120 countries and territories.
Shares of Hilton were up 0.32% at $91.41 in trading on Wednesday.