Hilton and Starwood report higher Q1 hotel room demand

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Hilton Worldwide and Starwood Hotels & Resorts each reported higher first-quarter demand for hotel rooms on Wednesday.

Hilton’s global revenue per available room (RevPAR) advanced 6.6%, factoring out currency exchanges, on demand growth primarily in the Americas and Asia-Pacific regions. Hilton’s Waldorf Astoria, Conrad, DoubleTree and Hampton brands each had year-over-year RevPAR increases of between 6.9% and 8%.

Hilton’s net income climbed 22% from a year earlier to $150 million on higher demand and a gain from its $1.95 billion sale of the Waldorf Astoria New York. Revenue rose 10%, to $2.6 billion.

Starwood’s first-quarter global RevPAR advanced 5.2%, as a 6.8% increase in North America RevPAR offset the effects of nearly flat demand in China and the Africa/Middle East region. RevPAR for the Westin and W brands increased 7.4% and 6.5%, respectively, offsetting the impact of lower revenue gains at Sheraton and Le Meridien.

Net income fell 28%, to $99 million, while revenue was down 2.9%, to $1.42 billion, primarily because of the number of hotels properties Starwood sold during the past year.

Starwood also said Wednesday that it would explore “a full range of strategic and financial alternatives” for the company.

Starwood shares were up about 7.5% as of about 1 p.m. Wednesday and touched record highs.

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