Hilton (NYSE:HLT) fell more than 1% in pre-open trading Wednesday despite posting solid second quarter results and raising guidance for the year amid strong travel demand.
The hotel operator reported that System-wide comparable RevPAR increased 12.1% in the quarter, although they see RevPAR moving back down to 4-6% for the current quarter. For the year, they see RevPAR up 10-12%.
The company reported adjusted EPS was $1.63 for the second quarter, topping the consensus of $1.58. Total revenue of $2.66 billion beat the consensus of $2.56B.
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "System-wide comparable RevPAR continued to expand throughout the quarter, experiencing growth across all of our customer segments and regions, driven by strong preference for our brands. Our top line performance yielded meaningful bottom line results, as we exceeded the high end of our guidance for Adjusted EBITDA and diluted EPS, adjusted for special items. We continue to drive long-term growth of our global network through the launch of strategic, new brands and have already added over 60,000 rooms to our development pipeline during 2023."
The company raised its guidance for the third quarter and year.
The company sees Q3 adjusted EPS of $1.60-$1.65, versus the consensus of $1.59.
They see full-year 2023 adjusted EPS of $5.93-$6.06, versus its prior outlook of $5.68-$5.88 and the consensus of $5.90.