Hilton Hotels Corp. reported record quarterly income for the second quarter as both room rates and occupancy rates rose.
Beverly Hills-based Hilton (NYSE: HLT) made record recurring net income of $110 million even before adding one-time items that took the figure to $202 million.
"All three facets of our business -- owned hotels, management and franchising, and timeshare -- are performing very well, taking full advantage of the robust business trends that continue to mark our industry's recovery," CEO Steve Bollenbach said.
Comparable owned hotel revpar -- revenue per available room -- was up 9.4 percent. Hilton cited strength in New York, Hawaii and Boston plus significant improvement in Chicago.
"Strong increases in room nights, along with continuing pricing power, resulted in many of the company's owned hotels showing double-digit revpar gains in the quarter, including those in New York City, Honolulu, Phoenix, Atlanta, Seattle and Portland," Hilton said Wednesday.
The quarter at a glance:
* Revenue: $1.18 billion. Year before: $1.07 billion.
* Net income: $202 million. Year before: $75 million.
* Per share: 49 cents. Year before: 19 cents.
Hilton took in $606 million in revenue from owned and leased hotels, $422 million in management fees and franchise revenues, and $148 million from timeshare and other businesses. The company also cited strong food-and-beverage revenues in New York, Chicago and Hawaii.
Hilton Grand Vacations Co., the company's vacation ownership business, reported a strong quarter with profitability up 44 percent owing to strong unit sales in Las Vegas, Orlando and Hawaii.
During the quarter, Hilton completed a transaction whereby it will acquire 112 acres of undeveloped land on Hawaii's Big Island for $65 million. The company is likely to utilize the land for future timeshare development, but specific plans are still being determined.
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