Hilton Worldwide Holdings (NYSE:HLT) on Wednesday reported a fourth quarter loss, reflecting restructuring costs.
The owner of the Waldorf Astoria hotel chain posted a net loss of $387mln in the three months ended 31 December 2016, compared to a profit of $814mln a year ago.
The company incurred $513mln restructuring charges before it completed its spinoff of Park Hotels & Resorts and Hilton Grand Vacations. The spinoff, completed in January, resulted in three separate companies including Hilton Worldwide, Park Hotels & Resorts Inc. and Hilton Grand Vacations Inc.
Excluding the restructuring charges incurred before the spinoffs, underlying earnings rose to $751mln from $745mln. Adjusted diluted earnings per share climbed to 70c from 65c.
Revenue rose to $2.92bn from $2.86bn, supported by growth in hotel bookings at higher prices.
Analysts had expected revenue of $2.91bn and EPS of 65c, according to Thomas Reuters.
System-wide revenue per available room rose 0.9%, compared to the company’s guidance of between flat to 1% growth in the fourth quarter.
Hilton said it added 354 hotels to its system last year.
Story by ProactiveInvestors