HOTEL operator Hilton Worldwide raised its forecast for 2024 profit after beating second-quarter estimates on Wednesday (Aug 7) as robust demand for international travel offset losses from normalising domestic travel in the US
It expects full-year profit between US$6.93 and US$7.03 per share, compared with its previous forecast of US$6.89 to US$7.03.
Travel companies have been benefiting from a sustained rise in international travel as tourists flock to destinations in the Middle East and Europe.
Internationally, quarterly revenue per available room (RevPAR) grew 3.5 per cent, led by 10.7 per cent growth in the Middle East and Africa and 6.7 per cent in Europe.
Meanwhile, domestic travel in the US has been weak as Americans grow cautious about travel spending in an increasingly uncertain economy.
RevPAR in the US grew at a sluggish 2.9 per cent, while the rest of the Americas gained 6.5 per cent during the quarter.
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Hilton lowered its 2024 RevPAR growth forecast to a range of 2 to 3 per cent, compared with its previous forecast of 2 to 4 per cent.
Shares of the company were down 1.2 per cent before the bell.
Quarterly adjusted profit came in at US$1.91 per share, compared with Wall Street estimates of US$1.86 per share.
Total revenue for the quarter ended June 30 was US$2.95 billion, up nearly 11 per cent but lower than analysts’ estimates of US$2.93 billion, according to LSEG data. REUTERS
