Latest news with #HiltonWorldwide
Reuters
13 hours ago
- Business
- Reuters
US travel bookings rebound for August, boosting companies' revenue outlook
NEW YORK, July 29 - U.S. travel companies including air carriers United Airlines (UAL.O), opens new tab and Southwest Airlines (LUV.N), opens new tab and hotel operators Hilton Worldwide (HLT.N), opens new tab and Wyndham Hotels (WH.N), opens new tab have issued a collective sigh of relief as budget-conscious Americans have started booking travel again after many put vacation plans on pause earlier this year. U.S. consumer sentiment rebounded in July from a shaky June, dinged by inflation, a weakening U.S. dollar, and President Donald Trump's trade war. That translated to a rise in spending, with travel companies seeing an uptick in bookings and now expecting stronger fourth-quarter revenue growth. Companies that primarily service price-sensitive customers or the domestic U.S. market have higher expectations for August, with some seeing the end of the third quarter as an inflection point for what has otherwise been a rocky environment in 2025. "Just as quickly as demand stepped down in early February due to this uncertainty, it appears that demand is now stepping up," United Airlines Chief Commercial Officer Andrew Nocella said on a post-earnings call, saying uncertainty has dropped in recent weeks after five months of weak demand. Hotel operator Hilton echoed those sentiments, saying the freeze in corporate and business travel spending was finally "thawing." "Given our overweighting to the domestic market, we would expect to be an outsized beneficiary of any recovery in the domestic demand environment," said Southwest CEO Robert Jordan on an investor call. The company said demand stabilized in the second quarter, and its recent bookings showed clear signs of improvement. Most U.S. airline and hotel operators withdrew or cut their financial forecasts in April and May as President Trump's trade war threw the industry into its most uncertain time since the COVID-19 pandemic. Still, there is lingering uncertainty over how the economy will fare in an ever-evolving tariff landscape and with inflation still above the U.S. Federal Reserve's desired 2% rate. Super 8 motel operator Wyndham said that it was seeing more strength in revenue per available room, an important metric in the hospitality industry, in states like Wisconsin, Michigan, Minnesota, and Missouri, indicating steady demand from blue-collar everyday travelers. "In August, we'll see a stronger summer travel season," said CFO Michele Allen. American Airlines (AAL.O), opens new tab said it expects revenue to improve sequentially in August and September. Alaska Air Group (ALK.N), opens new tab Chief Commercial Officer Andrew Harrison said closer-in bookings are coming in stronger, with "very good" activity in August. However, the uptick in demand will be more evident for hotels and airlines in the fourth quarter. For airlines, "a continuation of these demand trends is needed as a catalyst for airline stocks" as weak demand for main cabin seats has forced airlines to offer sales to fill planes, Andrew G. Didora, Bank of America equity research analyst, said in a note.
Yahoo
6 days ago
- Business
- Yahoo
Hilton Worldwide Touts Strong Growth Pipeline But Outlook Falls Short
Hilton Worldwide Holdings Inc. (NYSE:HLT) shares are trading lower on Wednesday after the company's third-quarter outlook fell short of the consensus despite beating second-quarter earnings and revenue estimates. The company reported second-quarter adjusted earnings per share of $2.20, beating the analyst consensus estimate of $2.01. Quarterly sales of $3.137 billion outpaced the Street view of $3.096 billion. Hilton said it approved 36,200 new rooms for development during the second quarter, bringing our development pipeline to a record 510,600 rooms as of June 30, up 4% year over year. Also Read: 'On the development side, we achieved the largest pipeline in our history, and we remain confident in our ability to deliver net unit growth between 6.0 percent and 7.0 percent for the next several years,' said CEO Christopher J. Nassetta. Net income for the quarter ended June 30, 2025, was $442 million, up from $422 million a year earlier. Net income margin contracted to 14.1% from 14.3% in the year-ago period. View more earnings on HLT Adjusted EBITDA rose to $1.008 billion, compared to $917 million in the same period of 2024. Adjusted EBITDA margin expanded to 75.2% from 72.2% in the year-ago period. In the second quarter, the firm opened 221 hotels, totaling 26,100 rooms, resulting in 22,600 net room additions. Total cash and cash equivalents were $448 million as of June 30, including $77 million of restricted cash and cash equivalents. Dividend In July, the firm authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on September 30 to holders of record of our common stock as of the close of business on August 29. Outlook Hilton projects third-quarter adjusted earnings per share of $1.98 to $2.04, missing the $2.14 consensus. It expects GAAP earnings per share of $1.89 to $1.95 versus the $2.08 estimate. The company raised its full-year 2025 adjusted EPS outlook from $7.76-$7.94 to $7.83–$8.00, versus the $7.90 estimate. However, it cut its GAAP earnings per share outlook from $7.04-$7.22 to $6.82-$6.99 versus the $7.24 estimate. Price Action: HLT shares are trading lower by 1.74% to $270.12 at last check Wednesday. Read Next:Photo by josefkubes via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? HILTON WORLDWIDE HOLDINGS (HLT): Free Stock Analysis Report This article Hilton Worldwide Touts Strong Growth Pipeline But Outlook Falls Short originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Irish Examiner
6 days ago
- Business
- Irish Examiner
Hilton hotel group lifts profit forecast as US travel demand recovers
Hotel group Hilton Worldwide lifted its 2025 profit forecast on expectations of a complete recovery in domestic travel demand in the US after a sharp pullback earlier this year. But the company's projection for third-quarter profit came in below analysts' expectations, sending the hotel operator's shares down more than 2% on Wednesday. Some travel companies, including Delta Airlines and United Airlines, recently said US travel demand had steadied after a setback in March driven by President Donald Trump's trade war. "We believe the [US] economy... is set up for better growth over the intermediate term, which should accelerate travel demand and, when paired with low industry supply growth, unlock stronger revenue per available room," said Hilton chief executive Christopher Nassetta. 'On the development side, we achieved the largest pipeline in our history, and we remain confident in our ability to deliver net unit growth between 6% and 7% for the next several years,' he added. International tourists from Canada and Europe have cut down US visits. Hilton's second-quarter US room revenue fell 1.5% compared to a year earlier. However, total revenue for the quarter ended June 30 was $3.14bn (€2.69bn), up 6.3% from a year earlier.. Hilton operates 15 hotels in Ireland including the Montenotte Hotel and the Ballymaloe House Hotel — both of which are in Cork. Bernstein analyst Richard Clarke also raised concerns about the company's ability to meet its 6% to 7% projection for 2025 net unit growth, which refers to the number of rooms added to the company's portfolio. Hilton will need a record second half to meet even the low end of its full-year net unit growth forecast, prompting concerns of a potential downgrade, Mr Clarke said. The company forecast its full-year adjusted profit to be in the range of $7.83 and $8 per share, compared with its earlier forecast of $7.76 to $7.94. The Waldorf Astoria-parent, which last week reopened its flagship hotel in New York after eight years of restoration, posted an adjusted profit of $2.20 per share in the second quarter, beating Wall Street estimates of $2.04, according to data compiled by LSEG. Reuters Read More Davy to focus more investment on European markets amid volatility in US
Yahoo
7 days ago
- Business
- Yahoo
Hilton beats earnings expectations despite modest RevPAR decline
-- Hilton Worldwide Holdings Inc. reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $2.20 surpassing the consensus estimate of $2.03. Revenue for the quarter came in at $3.14 billion, slightly above the analyst forecast of $3.1 billion. The hotel giant's system-wide comparable RevPAR (revenue per available room) declined 0.5% on a currency neutral basis compared to the same period in 2024, attributed to modest occupancy declines that were partially offset by ADR (average daily rate) gains. Despite this top-line weakness, management and franchise fee revenues increased 7.9% YoY. Hilton's stock edged up 0.6% following the announcement. "We continued to demonstrate the power of our resilient business model as we delivered strong bottom line results in the quarter, even with modestly negative top line performance given holiday and calendar shifts, reduced government spending, softer international inbound business and broader economic uncertainty," said Christopher Nassetta, President & CEO of Hilton. For the full year 2025, Hilton projects adjusted earnings per share between $7.83 and $8.00, compared to the analyst consensus of $7.96. The company expects system-wide RevPAR to be flat to up 2.0% on a comparable and currency neutral basis versus 2024. Hilton's development pipeline reached a record 510,600 rooms as of June 30, up 4% from the previous year. The company added 26,100 rooms to its system during the quarter, resulting in 22,600 net additional rooms and contributing to net unit growth of 7.5% YoY. Related articles Hilton beats earnings expectations despite modest RevPAR decline Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett If Powell goes, does Fed trust go with him? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
7 days ago
- Business
- Reuters
Hilton lifts 2025 profit forecast on US demand recovery
July 23 (Reuters) - Hotel operator Hilton Worldwide (HLT.N), opens new tab lifted its forecast for 2025 profit, as travel demand in the U.S. recovers from a downturn in March and April. Earlier this year, domestic travel took a hit after U.S. President Donald Trump's aggressive tariff announcements triggered fears of an economic recession that led consumers to rein in discretionary expenses. Some travel companies, such as Delta Air Lines (DAL.N), opens new tab and United Airlines (UAL.O), opens new tab have recently flagged that travel demand in the U.S. has steadied, although the recovery has been slower than anticipated. McLean, Virginia-based Hilton now expects full-year adjusted profit to be in the range of $7.83 and $8 per share, compared with its earlier forecast of $7.76 to $7.94. The Waldorf Astoria-parent posted an adjusted profit of $2.20 per share in the second quarter, compared with $1.91 a year ago.
