Hilton Worldwide has revised down its full-year room revenue forecast slightly on the back of weaker domestic travel demand and signs of broader economic pressures impacting consumer spending.
The hotel operator said Wednesday that it expects revenue per available room to increase 2% to 2.5% this year, compared with an August forecast of 2% to 3% and an April forecast of 2%. It is below 4%.
The outlook revision comes after Hilton reported slower revenue growth in the third quarter, with revenue per available room increasing just 1.4% compared to the same period last year.
Net income for the quarter was $344 million, down from $379 million in the year-ago period.
Executives said the slower-than-expected sales growth was due to “slightly slower macro trends, weather impacts, and unfavorable changes in the calendar.”
Despite the weakening revenue outlook, Hilton continued to expand, adding a record 36,600 rooms in the third quarter. The company’s development pipeline grew 8% year-on-year to 492,400 rooms, highlighting its focus on long-term growth even as short-term travel demand slows.
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