Hilton Shares Decline on Weak Outlook Despite Q2 Earnings Beat

Hilton Worldwide Holdings Inc. Reports Strong Q2 Earnings Despite Disappointing Outlook

NEW YORK – Hilton Worldwide Holdings Inc. has announced second-quarter earnings that exceeded analyst expectations. However, the company’s stock declined by 1.7% following an outlook that fell short of estimates.

The hotel chain recorded adjusted earnings per share of $1.91, surpassing the analyst consensus of $1.86. Revenue for the quarter was $2.95 billion, exceeding expectations of $2.91 billion, and marking a 10% increase compared to the same period last year.

System-wide comparable RevPAR (Revenue Per Available Room) increased by 3.5% year-over-year on a currency-neutral basis, fueled by rises in both occupancy and average daily rates. Growth was observed across all segments, with particularly robust performance noted in group bookings.

Despite the solid results, Hilton’s guidance for the remainder of the year was a letdown for investors. The company anticipates full-year 2024 earnings per share to fall between $6.93 and $7.03, below the analyst consensus of $7.11. For the third quarter, Hilton projects earnings per share of $1.80 to $1.85, again falling short of the $1.90 estimate.

Christopher J. Nassetta, President & CEO of Hilton, remarked 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, particularly strong group performance."

As of June 30, 2024, Hilton’s development pipeline reached a record 508,300 rooms, reflecting a 15% year-over-year growth. The company added 22,400 rooms during the second quarter, resulting in a 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 range between $1,532 million and $1,555 million, with Adjusted EBITDA projected to be between $3,375 million and $3,405 million.

This article was generated with the support of AI and reviewed by an editor.