:max_bytes(150000):strip_icc()/GettyImages-2050705887-ec7138a7f7cc4c88a0843693d644177d.jpg "Hilton Trims Its Earnings Outlook Amid Concerns About Softening Travel Demand")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2050705887-ec7138a7f7cc4c88a0843693d644177d.jpg)
Key Takeaways
- Hilton reported second-quarter earnings that missed analysts’ estimates and trimmed its full-year earnings outlook.
- Revenue for the second quarter was slightly ahead of projections as Hilton’s revenue per available room rose.
- The results came as earnings from Airbnb, Tripadvisor, and Hyatt Hotels this week raised concerns about softening travel demand.
Hilton Worldwide Holdings (HLT) reported second-quarter earnings that missed analysts’ estimates and trimmed its full-year earnings outlook amid concerns about softening travel demand.
The hotel giant said it now expects 2024 earnings per share of $6.06 to $6.15, down from $6.21 and $6.35 previously and below analysts’ projections. Hilton lowered the upper end of its projected growth in revenue per available room to 3% from 4%, with the bottom end lingering at 2%.
Hilton’s second-quarter earnings per share of $1.67 missed estimates, while revenue of $2.95 billion narrowly beat expectations as revenue per available room rose 3.5% year-over-year.
Guidance Cut Comes Amid Worries About Slowing Demand
The results came as earnings from Airbnb (ABNB), Tripadvisor (TRIP), and Hyatt Hotels (H) this week also raised concerns about softening demand, particularly in the U.S.
Baird analysts said Wednesday that Airbnb’s results offered “more evidence emerging of consumers tightening their belts on travel, or at least delaying travel planning.”
Hilton shares were down 1.3% at $204.46 in intraday trading Wednesday following the company’s earnings release. Hyatt shares were also slightly lower, while Airbnb and Tripadvisor shares tumbled over 14%.