Hotel operator Hilton Worldwide raised its forecast for 2024 profit after beating second-quarter estimates on Wednesday as robust demand for international travel offset losses from normalising domestic travel in the US.
It expects full-year profit between $6.93 and $7.03 per share, compared with its previous forecast of $6.89 to $7.03.
International Travel
Travel companies have been benefiting from a sustained rise in international travel as tourists flock to destinations in the Middle East and Europe.
Internationally, quarterly revenue per available room (RevPAR) grew 3.5%, led by 10.7% growth in the Middle East and Africa and 6.7% in Europe.
Meanwhile, domestic travel in the US has been weak as Americans grow cautious about travel spending in an increasingly uncertain economy.
Shares
RevPAR in the US grew at a sluggish 2.9%, while the rest of the Americas gained 6.5% during the quarter.
Hilton lowered its 2024 RevPAR growth forecast to a range of 2% to 3%, compared with its previous forecast of 2% to 4%.
Shares of the company were down 1.2% before the bell.
Revenue
Quarterly adjusted profit came in at $1.91 per share, compared with Wall Street estimates of $1.86 per share.
Total revenue for the quarter ended June 30 was $2.95 billion (€2.70 billion), up nearly 11% but lower than analysts' estimates of $2.93 billion (€2.68 billion), according to LSEG data.
Graduate Hotels
Hilton said in March it will buy Graduate Hotels from Adventurous Journeys Capital Partners for $210 million (€192 million), marking its first brand acquisition in over two decades as pressure in the hotel industry creates opportunity for consolidations.
Hilton said it believes the addressable market for the Graduate brand that primarily caters to locations near major colleges and universities in the United States and the United Kingdom, is 400-500 hotels globally.
