Story
Hilton Lifts Full-Year RevPAR Forecast on Resilient Luxury Demand
Summary
The hotel operator now expects full-year revenue per available room to grow 3% to 3.5%, citing strong spending at its high-end properties, even as it reported a sharp decline in its Middle East business.
Hilton Worldwide Holdings raised its full-year forecast for a key revenue metric on Tuesday, citing robust demand at its luxury hotels that is offsetting weakness in other regions and a mixed outlook for the remainder of the year.
Upgraded Outlook and Q2 Results
The McLean, Virginia-based company now expects its revenue per available room (RevPAR) — a critical industry metric tracking occupancy and average daily rates — to grow between 3% and 3.5% for fiscal 2026. This is an increase from its previous forecast of 2% to 3% growth.
The revised guidance follows a second quarter where Hilton met profit expectations and slightly beat on revenue. Key figures for the quarter ended June 30 include:
- Adjusted Earnings Per Share: $2.29, in line with analyst estimates.
- Total Revenue: $3.34 billion, representing a 6.5% increase from the year-ago period and just above the consensus estimate of $3.33 billion.
Luxury Demand Offsets Headwinds
AdHilton attributed the stronger outlook to continued spending from wealthier households on its luxury properties, such as LXR and Conrad, which have remained resilient despite persistent inflation. The company also noted a boost to tourism and pricing in North America during the quarter from the FIFA World Cup.
However, Hilton cautioned that it anticipates headwinds in the fourth quarter from unfavorable calendar shifts and the U.S. midterm elections. The company's shares were reported to be marginally lower in premarket trading following the announcement.
Middle East Business Falters
A significant area of concern was the company's performance in the Middle East and Africa, where room revenue plummeted 29.5% compared to the same period last year. The source material attributed this sharp decline to dampened travel to the region amid prolonged conflicts.
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