Hilton's 2016 Annual Report offered some good news for the company's investors. With RevPAR up by 1.8 percent from 2015 and adjusted EBITDA up by 3 percent, Hilton had a respectable 2016, and looks poised for further growth through 2019.
Last year, Hilton opened 354 properties (nearly one per day) and added hotels in five new countries.
Hilton also signed over 106,000 guestrooms, grew its pipeline to nearly 310,000 rooms (up 16 percent over 2015) and has a further 157,176 under construction (up 17 percent over 2015).
Notably, Hilton is making progress in growing its China footprint: The company has 328 hotels open or in the pipeline in Greater China for a total of nearly 96,000 rooms across the country.
In total, Hilton now has 4,875 hotels open worldwide with another 1,968 in the pipeline.
"Hotel owners continue to invest in our growth at an unparalleled rate, committing more than $50 billion to a record pipeline of nearly 310,000 rooms," Hilton President & CEO Christopher Nassetta wrote in an open letter with the report. "In the last seven years, we have launched five new brands: Canopy, Curio, Home2, Tru and Tapestry, which now make up more than 20 percent of our pipeline. Last year, we introduced Tru by Hilton to the midscale segment, and it became the fastest-growing brand in our history, as well as, we believe the most successful brand launch in the industry. We have nearly 400 deals signed or in progress, and the first Tru by Hilton will open in the second quarter of 2017."
Hilton also "significantly simplified" the company through the spin-offs of its timeshare business and the majority of its real estate assets into Hilton Grand Vacations and Park Hotels & Resorts, respectively. "As a result, the new Hilton is a fee-driven, capital-efficient company with a more resilient earnings profile," Nassetta wrote.