Content area
Full text
The lodging industry may be bipartisan, but when it comes to tax reform, it leans right.
On Hilton's fourth-quarter earnings call, CEO Chris Nassetta called attention to the benefits that have come via the Trump administration's tax reform plan, which was passed by Congress. Though he said it's still early to judge the ultimate ramifications of it, "it looks good for the broader economy and lodging industry," he said, adding that those connected to the industry whom he has spoken to have all lauded tax reform and the positivity driven by a reformed regulatory environment.
Of what Hilton intends to do with the windfall from tax reform, Nassetta said the bulk of benefits will be "returned to shareholders."
Hilton's net income was $841 million for the fourth quarter. For the full-year 2018, net income is projected to be between $802 million and $837 million. Systemwide comparable revenue per available room increased 3.8 percent and 2.5 percent for the fourth quarter and full-year 2017, respectively. In the U.S., RevPAR was up 3.2 percent.
"I'm an optimist by nature," Nassetta said, and praised the company's 2.5-percent RevPAR deliverance in an "environment where group business was weak." Nassetta said he expects international markets to again be strong in 2018, with Europe and Asia Pacific outperforming the U.S.
Leisure transient business looks good again, Nassetta said, though cautioning that it is only February. "There's lots of year to play out," he said. A full 80 percent of Hilton's group business is on the books.
A total of 18,400 rooms were added in the quarter, 51,600 net rooms for the full year, representing...