Hilton misses quarterly revenue estimates, warns of Mideast impact

Oct 27 (Reuters) – Hilton Worldwide Holdings missed third-quarter revenue estimate on Tuesday and said US midterm elections and increased impact from the Middle East could affect its fourth-quarter performance, sending its shares down 5% in premarket trading.

While steady leisure and business travel demand supported hotel spending across price segments — from budget accommodations to luxury stays — in the reported quarter, the latest US-Iran attacks have injected fresh uncertainty into the travel sector, clouding the outlook.

The McLean, Virginia-based hotel operator’s room revenue from Middle East & Africa region were down 5.6% over the year earlier in the quarter ended September 30, while that for the US rose 7%.

Hilton’s revenue per available room — a key lodging metric that tracks average daily rate and occupancy — at its luxury properties Waldorf Astoria and LXR rose 13.9% and 14.3%, respectively, during the quarter.

The company expects RevPAR to grow between 4% and 4.5% for fiscal 2026, compared with its previous forecast of a 3% to 3.5% increase.

Hilton’s quarterly adjusted profit rose to $2.45 per share from $2.11 a year earlier. Analysts, on average, estimated $2.36, according to data compiled by LSEG.

Total revenue stood at $3.33 billion, up 6.6% from a year earlier, but below the estimate of $3.37 billion.

(Reporting by Anshuman Tripathy in Bengaluru; Editing by Shilpi Majumdar)

Brought to you by www.srnnews.com

Click here to read the full article