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The U.S. hospitality industry in recent months has benefited from pricier rates and a strong rebound in international travel as consumers take advantage of a strong dollar and flexible work arrangements to plan overseas holidays.
Shares were down 1.1% at $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% 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% to $2.67 billion, exceeding the average Wall Street estimate of $2.64 billion, according to LSEG data. Adjusted earnings of $1.67 per share met average analysts’ estimate.
Hilton now expects annual adjusted profit between $6.04 and $6.09 per share, compared with its prior estimate of $5.93 to $6.06 per share.
It expects full-year revenue per room to increase between 12.0% and 12.5% compared to 2022.
Net unit growth – which reflects room additions – remained at approximately 5% for the full year.
On Tuesday, card giant Visa (NYSE:V) said travel volume outbound from the U.S. to all geographies continued to be strong and inbound travel recovery accelerated through the quarter.
