Hilton Raises 2024 Profit Forecast Amid Growing International Travel Demand

Hilton Worldwide Holdings Inc. has adjusted its 2024 profit forecast upwards, buoyed by robust international travel demand, even as U.S. hotel market growth slows.

The hotel giant reported a 3.5% increase in system-wide comparable revenue per available room (RevPAR) year-over-year, resulting in a net income of $422 million for the quarter. Shareholders enjoyed a diluted earnings per share of $1.67.

Hilton is also marking record growth in its development pipeline. By the end of the quarter, the company had 508,000 rooms under development, a significant 15% increase from the previous year. The addition of 22,400 new rooms during the second quarter represents a 6.2% rise compared to last year. This expansion includes the recent acquisition of Graduate Hotels, finalized in May, and the addition of nearly 400 hotels through a new partnership with Small Luxury Hotels of the World, announced in July.

Christopher J. Nassetta, Hilton’s President & CEO, highlighted the company’s strong performance, noting a 3.5% increase in RevPAR driven by robust group bookings and overall growth across all segments. The development pipeline, which has grown 15% year-over-year and 8% sequentially from the first quarter, includes new strategic partnerships that are expected to contribute to future growth. Hilton anticipates a net unit growth of 7.0% to 7.5% for the full year.

Looking ahead, Hilton projects a 2-3% increase in system-wide RevPAR for 2024, with net income expected to range between $1.532 billion and $1.555 billion. Shareholders can anticipate a diluted earnings per share of $6.06 to $6.16.