Pebblebrook, Hilton and Travel + Leisure All Beat First-Quarter Estimates
Skift Take
During the hotel group's earnings season, Hilton's report stood out as the most impressive – despite showing slowing RevPAR growth – due to strong performance in Net Unit Growth and EBITDA flow through.
The DJIA fell 43 points but Nasdaq was up 16, the S&P 500 was up a point and the 10-year treasury yield was up .05 to 4.65%. Lodging stocks were higher. SOHO and VCSA were the biggest movers, up 6% and up 5% respectively.
Earnings season for the hotel group kicked off with Pebblebrook, Hilton and Travel + Leisure all reporting. All beat estimates but when you look at one of the key metrics of the hotel space, RevPAR, Hilton’s showed slowing RevPAR growth yet investors and analysts clearly had HLT as the most impressive report of the three. The reason simply is Net Unit Growth and EBITDA flow through, easily offsetting concerns about slowing RevPAR. HLT raised 2024 Adjusted EBITDA guidance, even though it was by less than the 1Q beat but with NUG being 5.7% in 1Q, up from 4Q2 and NUG guidance for the year raised by 50 basis points, it is clear HLT’s acquisition strat
