Hilton Worldwide Holdings beat Wall Street estimates for third-quarter revenue and lifted its annual forecast on Wednesday, as record lodging prices and higher occupancy levels boosted results.
The US hospitality industry in recent months has benefited from pricier rates and a strong rebound in international travel as consumers take advantage of a strong dollar and flexible work arrangements to plan overseas holidays.
Shares were down 1.1% at $148 in premarket trading.
'Exceeding Our Expectations'
Hilton, which owns brands including Waldorf Astoria Hotels & Resorts, said its third-quarter revenue per available room, an important metric in the hospitality industry, rose 6.8% from a year earlier.
"We continued to see strong results during the third quarter, exceeding our expectations for system-wide RevPAR growth, with growth across all customer segments," said Christopher Nassetta, chief executive officer of Hilton, in a statement.
Adjusted Profit
The company's third-quarter revenue rose about 12.88% to $2.67 billion (€2.52 billion), exceeding the average Wall Street estimate of $2.64 billion, according to LSEG data. Adjusted earnings of $1.67 per share met average analysts' estimate.
Hilton now expects annual adjusted profit between $6.04 and $6.09 per share, compared with its prior estimate of $5.93 to $6.06 per share.
It expects full-year revenue per room to increase between 12.0% and 12.5% compared to 2022.
Inbound Travel Recovery
Net unit growth – which reflects room additions - remained at approximately 5% for the full year.
On Tuesday, card giant Visa said travel volume outbound from the US to all geographies continued to be strong and inbound travel recovery accelerated through the quarter.
Smaller Footprint
In July, Hilton Worldwide Holdings beat Wall Street estimates for second-quarter revenue, as record lodging prices and rebounding corporate and summer travel demand boosted results.
Hotel companies have seen demand plateau in the United States after benefiting in recent quarters from elevated domestic bookings as consumers used remote work as an excuse to travel.
But with international travel rising, Hilton is facing increased competition as it has a smaller footprint abroad compared with its competitors.
Article by Reuters, additional reporting by Hospitality Ireland.
