Hilton Holdings Reports Strong Q1 Results with 12% Revenue Growth to $2.57 Billion, Exceeding Expectations | Global News

Hotel operator Hilton Worldwide Holdings exceeded expectations for first-quarter revenue and raised its 2024 profit forecast, citing strong international travel demand. The company reported a 12% increase in revenue to $2.57 billion, surpassing analysts’ expectations of $2.53 billion.

Hilton’s CEO, Christopher Nassetta, highlighted that international travel demand is expected to continue to rebound this year, with global air connectivity increasing and travelers showing interest in Asian and Latin American destinations. On the other hand, domestic travel demand in North America is expected to plateau.

The company now forecasts an annual adjusted profit of between $6.89 and $7.03 per share, up from the previous range of $6.80 to $6.94 per share. Hilton’s shares were up 2% in premarket trading following the announcement.

Despite challenges such as renovations, inclement weather, and unfavorable holiday shifts impacting performance, Hilton’s system-wide revenue per available room (RevPAR) increased by 2.0% in the first quarter. The Middle East and Africa region saw the highest increase in RevPAR at 14.8%, while the US experienced a slight decrease of 0.6%.

Analysts remain optimistic about Hilton’s performance, with Richard Clarke from Bernstein noting that global travel demand is still robust. Hilton expects net unit growth to be between 6% and 6.5% in 2024, excluding the impact of its planned acquisition of the Graduate Hotels brand.