Hilton Worldwide (HLT) on Wednesday raised its yearly earnings outlook after delivering better-than-expected results for the third quarter, but it lowered the view for a key revenue metric in the hotel industry.
McLean, Va.-based Hilton lowered its 2019 forecast for revenue per available room, a closely watched figure that measures daily rooms rates against occupancy. It is now expecting system-wide comparable RevPAR to increase 1% percent compared with 2018. In July, Hilton forecast system-wide comparable RevPAR to increase between 1% and 2%.
Hilton raised its full-year 2019 adjusted earnings forecast and now foresees $3.81 to $3.86 per share. It had previously anticipated $3.78 to $3.85 per share. The current consensus on Capital IQ is for $3.83 a share.
In the third quarter, adjusted earnings came in at $1.05 per share, up from $0.93 per share a year ago, and higher than $1.02 per share consensus estimate compiled by Capital IQ. Adjusted earnings “exceeded our expectations, driven by strong net unit growth,” the company said. The opening of 118 new hotels contributed to 7% net unit growth from the year earlier.
Revenue at the company, whose brands include Doubletree, Embassy Suites and Waldorf Astoria, increased to $2.4 billion from $2.25 billion. Analysts were looking for $2.39 billion.
Hilton worked through an “overall slowing macro environment” during the latest three months, but saw “market share gains across all brands and regions year to date,” Chief Executive Christopher Nassetta said in a statement.
For full-year 2020, Hilton projects system-wide comparable RevPAR in a range of flat to growth of 1% compared with 2019. Analysts at Barclays had expected Hilton to guide 2020 revenue per available room growth of flat to up 2%. Barclays this week noted it has been seeing soft demand in business travel and geopolitical pressures hurting growth prospects.
This post was originally published on Health Opinion