Skift Take
Hilton said its revenue growth won’t quite reach forecasted heights this year because demand is softening (not cratering). The news arrived like room service: slightly delayed and not quite what was hoped for.
Hilton Worldwide modestly trimmed its annual room revenue forecast amid signs of cooling domestic travel demand and broader economic pressures affecting consumer spending.
The hotel operator said Wednesday it now expects revenue per available room to grow between 2% and 2.5% this year, down from its August projection of between 2% and 3% and an April projection of between 2% and 4%.
The revised outlook comes after Hilton reported slower third-quarter revenue growth, with revenue per available room increasing just 1.4% compared to the same period last year.
Net income was $344 million for the third quarter, down from $379 million a year earlier.
Executives said the slower-than-hoped-for top-line growth was driven by “modestly slower macro trends, weather impacts, and unfavorable calendar shifts.”
Despite the softening revenue outlook, Hilton continued its expansion, adding a record 36,600 rooms in the third quarter. The company’s development pipeline grew to 492,400 rooms, up 8% from a year earlier, highlighting its focus on long-term growth even as near-term travel demand moderates.
Accommodations Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.
Read the full methodology behind the Skift Travel 200.