Hilton Raises Full-Year Profit Outlook but Shares Drop on Disappointing Q3 Guidance
Hilton Worldwide Holdings Inc (NYSE:HLT) raised its full-year profit outlook, projecting adjusted earnings per share of $8.89 to $9.01 and adjusted EBITDA between $4.04 billion and $4.06 billion for the year. Despite these upward revisions, shares fell 3.4% due to third-quarter guidance that came in below analyst expectations. For Q2, Hilton exceeded estimates with adjusted earnings of $2.29 per share on EBITDA of $1.05 billion. However, management forecasted weaker performance for the third quarter, expecting adjusted EPS between $2.28 and $2.34—below the projected $2.42—and lower-than-expected EBITDA guidance. The company cited World Cup-related demand as a positive factor in Q3 RevPAR growth but warned of headwinds from U.S. midterm elections in Q4. The development pipeline grew to 541,300 rooms globally, with nearly half under construction and more than half outside the U.S.
Tickers: $HLT
Topics: capital returns hotel industry RevPAR growth World Cup impact