Before its full-year and Q4 earnings release, Hilton shared an update on its 2023 performance.
The company ended 2023 with what it called “the strongest development quarter in its history,” opening more new rooms than during any other quarter. Hilton opened 132 hotels and approximately 24,000 rooms between October and December alone, contributing to full-year openings of 395 hotels and approximately 63,000 rooms to achieve net unit growth of 4.9 percent.
Hilton signed nearly 1,000 hotels with 130,000 rooms, more than any other year in its history, up 45 percent from the prior year and ahead of pre-pandemic levels. The company’s pipeline is now the largest in its history with nearly 3,300 hotels totaling more than 462,000 rooms, and its construction starts were up 15 percent over 2022 and approaching pre-pandemic levels. According to Hilton’s estimates, approximately one in every five hotel rooms under construction worldwide are slated to join the company’s portfolio.
“Our team is delivering robust results, supported by the power of our brands, our award-winning culture and strong commercial engines,” Chris Nassetta, president and CEO, Hilton, said in a statement. “We continue to feel very good about our prior net unit growth guidance of 5.5 percent to 6.0 percent in 2024, with strong indications towards the higher end of the range based on the positive momentum we are seeing in signings and construction starts.”
“Hilton’s development results continue to be an indicator of how well-positioned we are for long-term growth,” said Kevin Jacobs, CFO and president, global development, Hilton. “Hotel owners choose to work with us because of the strength of our growing portfolio of brands and our premium commercial performance. This owner preference drives our capital light growth and fuels our network effect, which helps us continue to deliver value for all our stakeholders.”
Hilton ended 2023 with more than 7,500 properties in 126 countries and territories. On average, more than one new hotel per day was added to Hilton’s global portfolio. Occupancy was also at a record high, with more than 213 million travelers staying at Hilton properties around the world.
Correction: An earlier draft of this story said that Hilton had signed nearly 400 hotels rather than opening them. The article has been updated with the correct numbers.