Hilton’s revenue beats estimates on record lodging prices

HILTON Worldwide Holdings beat Wall Street estimates for third-quarter revenue and lifted its annual forecast on Wednesday (Oct 25), 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 US dollar and flexible work arrangements to plan overseas holidays.

Shares were down 1.1 per cent at US$148 in premarket trading.

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 per cent 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.

The company’s third-quarter revenue rose about 12.88 per cent to US$2.67 billion, exceeding the average Wall Street estimate of US$2.64 billion, according to LSEG data. Adjusted earnings of US$1.67 per share met average analysts’ estimate.

Hilton now expects annual adjusted profit between US$6.04 and US$6.09 per share, compared with its prior estimate of US$5.93 to US$6.06 per share.

It expects full-year revenue per room to increase between 12.0 per cent and 12.5 per cent compared to 2022.

Net unit growth – which reflects room additions – remained at approximately 5 per cent for the full year.

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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. REUTERS