Oct 27 (Reuters) – Hilton Worldwide Holdings missed third-quarter revenue estimates on Tuesday and warned that US midterm elections and the Middle East conflict could weigh on its fourth-quarter performance, sending its shares down 5% in premarket trading.
Steady leisure and business travel demand supported hotel spending across price segments — from budget accommodations to luxury stays — in the reported quarter, but the latest US-Iran attacks have injected fresh uncertainty into the travel sector.
The McLean, Virginia-based hotel operator’s room revenue from the Middle East & Africa region was down 5.6% year-over-year in the quarter ended September 30, while that for the US rose 7%.
Last month, Marriott International CEO Anthony Capuano said Middle East hotel revenue declines eased in July, in early signs of relief for the industry despite the ongoing conflict causing development project delays.
However, Hilton said it expects to continue to see expansion in the Middle East & Africa region, with more than 20 signings during the third quarter.
ROOM REVENUE FORECAST RAISE
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 came in at $2.45 per share, higher than $2.11 last year and the average of analysts’ estimates of $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 consensus estimate of $3.37 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Shilpi Majumdar and Leroy Leo)
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