NEW YORK - Hilton Worldwide Holdings Inc. (NYSE:HLT) reported second-quarter earnings that surpassed analyst expectations, but shares fell 1.7% as the company's outlook fell short of estimates.
The hotel chain posted adjusted earnings per share of $1.91, beating the analyst consensus of $1.86. Revenue for the quarter came in at $2.95 billion, topping expectations of $2.91 billion and representing a 10% increase from the same period last year.
System-wide comparable RevPAR (Revenue Per Available Room) grew 3.5% YoY on a currency neutral basis, driven by increases in both occupancy and average daily rates. The company saw growth across all segments, with particularly strong performance in group bookings.
Despite the solid quarter, Hilton's guidance for the rest of the year disappointed investors. The company forecasts full-year 2024 EPS between $6.93 and $7.03, below the analyst consensus of $7.11. For the third quarter, Hilton expects EPS of $1.80 to $1.85, also falling short of the $1.90 estimate.
Christopher J. Nassetta, President & CEO of Hilton, commented on the results: "We are pleased to report a solid second quarter, with an increase in RevPAR of 3.5%, driven by growth in all segments, with particularly strong group performance."
Hilton's development pipeline reached a record 508,300 rooms as of June 30, 2024, representing 15% growth YoY. The company added 22,400 rooms to its system in the second quarter, resulting in net unit growth of 6.2% from the previous year.
For the full year 2024, Hilton projects system-wide RevPAR to increase between 2.0% and 3.0% on a comparable and currency neutral basis compared to 2023.
The company expects net income to be between $1,532 million and $1,555 million, with Adjusted EBITDA projected between $3,375 million and $3,405 million.
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