Hilton reports SME-led uptick in corporate travel in Q4

Powered by gains in business transient and small corporate group revenue, Hilton reported an overall Q4 revenue per available room increase of 5.7%

Feb 9, 2024

Fourth-quarter business transient RevPAR increased 4 per cent year over year on higher occupancy and rates, Hilton president and CEO Christopher Nassetta said on Wednesday during an earnings call. The gains again were led by small and midsized enterprises, he said, but noted that larger companies were recovering too.

Key takeaways

  • "The big corporates finished the year still a bit off, probably 5% off of where they were but still growing," Nassetta said. "Most segments were relatively strong and either back to or beyond prior to pandemic levels, with the exception of probably banking, technology and consulting, which were less. But blended together, they weren't that far off;"
  • SMEs accounted for about 85% of Hilton's business transient mix, as well as a "meaningful and growing percentage of our group mix," he said, and that segment's RevPAR has surpassed pre-pandemic levels;
  • In Q4, "from a RevPAR point of view, business transient was ahead, but from an occupancy point of view was still a bit behind," Nassetta said.

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