Earnings spark at Hilton Hotels despite weaker US market

(Sharecast News) - Hilton Worldwide Holdings reported above-forecast earnings on Wednesday, despite ongoing economic uncertainty in America, its biggest market. Second-quarter revenues per available room (RevPar) - a key industry measure - at the US hotel operator eased 0.5% in the three months to 30 June.

RevPar sparked 10.3% in the Middle East & Africa, 2% in Europe and 3.8% in the Americas excluding the US.

In contrast, it rose just 0.3% in Asia Pacific and slid 1.5% in the US.

Donald Trump's stringent tariff regime has prompted fears of resurgent inflation and sluggish economic growth in the US, weighing heavily on consumer sentiment.

A number of travel companies have also flagged a fall in international visitors.

However, Hilton said total revenues rose 6.3% to $3.14bn, modestly ahead of forecasts for $3.10bn, while net income increased to $442m from $422m.

Adjusted earnings per share rose to $2.20 from $1.91, also beating consensus, for $2.04.

The group also struck an upbeat note for the coming months.

Christopher Nassetta, chief executive, said: "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.

"With that being said, we believe the economy in our largest market 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 RevPar growth."

The Wall Street-listed firm is forecasting system-wide comparable wide RevPar growth for the full-year to be in the range of 0.0% and 2%. Adjusted EPS is expected to come in between $7.83 and $8.00.

The forecast for EPS was ahead of earlier guidance for $7.76 to $7.94.

As at noon BST, shares in Hilton were down 2% in pre-market trading.