Hilton expects profit in 2023 on strong travel demand

HILTON Worldwide Holdings reported better-than-expected quarterly profit and revenue on Thursday (Feb 9), as the hotel operator sold rooms at higher prices benefiting from strong travel demand.

The hospitality sector’s recovery from the pandemic has been turbocharged by a strong appetite for travel due to household savings and a hybrid work model, helping the industry offset rising labour costs.

Hilton, which owns brands including Waldorf Astoria Hotels & Resorts, expects to post an adjusted profit per share between US$5.42 and US$5.68 per share for this year. Analysts polled by Refinitiv expect a 2023 profit of US$5.60 per share.

For the fourth quarter, Hilton said revenue per available room, or RevPAR – a key metric for investors – rose 24.8 per cent on a currency neutral basis from a year earlier.

Excluding items, Hilton earned US$1.59 per share for the quarter ended Dec 31, beating analyst expectations of US$1.22 per share. Its revenues rose about 33 per cent to US$2.44 billion, compared with US$2.38 billion as per Refinitiv data. REUTERS