 "Hilton cuts 2024 revenue growth forecast on low consumer tourism spending")
Hilton Worldwide lowered the upper end of its annual room revenue growth forecast on Wednesday, as steady travel demand in Europe was not enough to counter a decline in China and a slowdown in the United States.
Shares of Hilton, which houses hotel brands such as Waldorf Astoria and DoubleTree, were down 3.4 per cent in premarket trading.
Rival Marriott International was also trading down 3.5 per cent.
Travel demand in the US has been facing challenges since the beginning of the year as Americans remain wary of depleting savings and rising credit card debt. Chinese consumer spending has also eased in the face of macroeconomic difficulties.
That has prompted many travelers to trade down, pick low-cost and budget alternatives in lieu of full-service hotels.
System-wide comparable RevPAR, or revenue per available room, increased 1.4 per cent in the third quarter over the year earlier, as room revenue fell 3.4 per cent in Asia and rose 1 per cent in the US
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"We were pleased to deliver continued strong bottom line results that exceeded our guidance, despite slower top line growth, which was driven by modestly slower macro trends, weather impacts and unfavorable calendar shifts," Hilton CEO Christopher Nassetta said in a statement.
Hilton expects its system-wide 2024 room revenue growth to be between 2 per cent and 2.5 per cent, compared with its prior range of 2 per cent to 3 per cent increase.
It reported an adjusted profit per share of $1.92 for the third quarter, compared with analysts' average estimate of $1.85, according to data compiled by LSEG.
Total revenue for the quarter ended Sept. 30 was $2.87 billion, up from $2.67 billion a year earlier. Analysts were expecting $2.9 billion.
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