Hilton Worldwide said on Thursday it had authorised the repurchase of an additional $3.5 billion (€3.3 billion) worth of common stock under the hotel giant's existing repurchase program.
This brings the total amount currently authorised for future repurchases by Hilton to about $4.8 billion (€4.5 billion).
Strong international travel demand has driven Hilton's shares more than 38% higher since the start of the year.
In October, Hilton Worldwide lowered its annual room revenue growth and net income forecasts as steady demand in Europe and business travel were not enough to counter a fall in demand in China and disruptions to its US business during the third quarter.
Global travel demand has been facing challenges as American and Chinese consumers remain wary of macroeconomic trends. Ongoing labor disputes, the upcoming election and weather disruptions in the US also weighed on results, the company said.
"Demand is flat, maybe even a little bit down," Hilton CEO Christopher Nassetta told investors in October. But the company said it may be able to push room rates to offset lower demand.
The company expects system-wide 2024 room revenue growth to be between 2% and 2.5%, compared with its prior range of a 2% to 3% increase.
The hotel operator's quarterly net income fell 9% to $344 million (€319 million). Full-year net income is now projected to be between $1.4 billion (€1.29 billion) and $1.42 billion (€1.31 billion), down from its previous forecast of $1.53 billion (€1.42 billion) to $1.56 billion (€1.44 billion).
Hilton's net unit growth, which reflects room additions, increased 7.8% during the quarter. The company expects room additions to be between 7% to 7.5% for the full year.
Quarterly total revenue was $2.87 billion (€2.66 billion), compared with estimates of $2.9 billion (€2.6 billion).
Article by Reuters, additional reporting by Hospitality Ireland.
