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Investing.com -- Hilton Worldwide Holdings Inc. reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $2.20 surpassing the consensus estimate of $2.03. Revenue for the quarter came in at $3.14 billion, slightly above the analyst forecast of $3.1 billion.
The hotel giant’s system-wide comparable RevPAR (revenue per available room) declined 0.5% on a currency neutral basis compared to the same period in 2024, attributed to modest occupancy declines that were partially offset by ADR (average daily rate) gains. Despite this top-line weakness, management and franchise fee revenues increased 7.9% YoY.
Hilton’s stock edged up 0.6% following the announcement.
"We continued to demonstrate the power of our resilient business model as we delivered strong bottom line results in the quarter, even with modestly negative top line performance given holiday and calendar shifts, reduced government spending, softer international inbound business and broader economic uncertainty," said Christopher Nassetta, President & CEO of Hilton.
For the full year 2025, Hilton projects adjusted earnings per share between $7.83 and $8.00, compared to the analyst consensus of $7.96. The company expects system-wide RevPAR to be flat to up 2.0% on a comparable and currency neutral basis versus 2024.
Hilton’s development pipeline reached a record 510,600 rooms as of June 30, up 4% from the previous year. The company added 26,100 rooms to its system during the quarter, resulting in 22,600 net additional rooms and contributing to net unit growth of 7.5% YoY.