Why Hilton Remains Confident After Summer Revenue Dip

Hilton remains optimistic about its full-year outlook despite a slight decline in second-quarter revenue per available room (RevPAR). The hotel group posted a net income of $442 million for Q2 2025, even as system-wide comparable RevPAR dipped 0.5 percent. Shares fell 2 percent following the earnings release, but management raised its profit forecast for the year.

RevPAR rose 1 percent in the first half of 2025 compared to the same period in 2024, largely due to higher average daily rates (ADR). Meanwhile, management and franchise fee revenue increased 7.9 percent in the second quarter. Adjusted EBITDA reached just over $1 billion, with diluted earnings per share at $1.84.

Hilton approved 36,200 new rooms in Q2, expanding its development pipeline by 4 percent to 510,000 rooms. The company also added 26,100 rooms to its global portfolio, reinforcing long-term confidence in its growth model.

CEO Christopher Nassetta acknowledged the short-term challenges, including reduced government travel, international softness, and broader economic uncertainty. However, he emphasized that improving economic conditions in the U.S. and limited hotel supply growth could fuel stronger RevPAR gains ahead.

Hilton expects third-quarter RevPAR to remain flat or decline slightly, with projected net income between $453 million and $467 million and EPS between $1.89 and $1.95. For the full year, RevPAR is forecast to be flat or rise up to 2 percent, with total revenue projected between $1.64 billion and $1.68 billion. Capital return is expected to reach $3.3 billion, and EPS is revised to $6.82–$6.99.

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