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(Reuters) – Hilton Worldwide Holdings (NYSE:HLT) beat Wall Street estimates for second-quarter revenue on Wednesday, 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.
Shares of the company were flat in premarket trading. The stock has gained 19% so far this year.
The company’s revenue per available room, or RevPAR, an important metric in the hospitality industry, rose 12% in the quarter from a year earlier.
“System-wide comparable RevPAR continued to expand throughout the quarter, experiencing growth across all of our customer segments and regions, driven by strong preference for our brands,” CEO Christopher Nassetta said.
Second-quarter revenue rose to $2.66 billion, exceeding the average Wall Street estimate of $2.57 billion, according to Refinitiv.
Average daily hotel rates were up about 18% in the second quarter from the same period in 2019, before the pandemic, according to analytics firm CoStar.
U.S. hotel demand has been below pre-pandemic levels for four consecutive months, falling 2% in June year-over-year. Hilton’s business is more exposed to the United States and North America when compared to competitor Marriott.
The company lifted its annual outlook again after boosting its annual profit outlook in the first quarter. It now expects full-year adjusted profit between $5.93 and $6.06 per share, compared with its prior forecast of $5.68 to $5.88 per share.
