Hilton lifts profit forecast on international travel demand
Business
Hilton lifts profit forecast on international travel demand
(Reuters) - Hotel operator Hilton Worldwide Holdings (HLT.N), opens new tab beat Wall Street estimates for first-quarter revenue and raised 2024 profit forecast on Wednesday, banking on international travel demand to offset normalizing trends in the US.
International travel demand is expected to continue to rebound this year as global air connectivity increases and travelers flock to Asian and Latin American destinations, while demand for domestic travel plateaus in North America.
The company forecast annual adjusted profit of between $6.89 and $7.03 per share, up from the previous range of $6.80 to $6.94 per share.
The hotel operator's first-quarter revenue rose 12% from a year earlier to $2.57 billion, beating analysts' expectations of $2.53 billion, according to LSEG data.
Hilton, which owns brands such as Waldorf Astoria Hotels & Resorts, reported a quarterly revenue per available room (RevPAR), an important metric in the hospitality industry, of $104.16.
"System-wide RevPAR increased 2.0 percent as renovations, inclement weather and unfavorable holiday shifts weighed on performance more than anticipated," said CEO Christopher Nassetta.
Hilton's shares were up 2% in premarket trading.
"US RevPAR turned negative but Americas and Middle East & Africa accelerated ... implying global travel demand still robust," Richard Clarke, analyst at Bernstein, wrote in a note.
