Hilton Worldwide Holdings announced Tuesday that it is raising its forecast for full-year room revenue growth, pointing to sustained demand from travelers staying at its high-end properties.
Affluent consumers have kept spending on upscale travel experiences even as inflation has continued to weigh on the broader economy. That trend has helped offset softer performance in the Middle East region.
The recently completed FIFA World Cup, which took place across the United States, Canada, and Mexico, gave a notable lift to tourism and hotel pricing during the quarter for operators like Hilton.
The McLean, Virginia-based company said its updated outlook accounts for an expected boost in the third quarter from World Cup-related travel. However, Hilton cautioned that the fourth quarter could face pressure from unfavorable calendar changes and midterm elections. Its stock was slightly down in premarket trading following the announcement.
Room revenue from Hilton’s Middle East and Africa region fell sharply — dropping 29.5% compared to the same period a year ago. The company noted that prolonged conflicts in the region, now entering their fifth month, have created uncertainty and discouraged travel there during the back half of the year.
Despite those regional challenges, revenue per available room — known in the industry as RevPAR — climbed at both its budget and mid-scale hotels during the second quarter, as well as at luxury brands including LXR and Conrad.
Hilton now expects RevPAR to grow between 3% and 3.5% for fiscal year 2026, an improvement over its earlier projection of 2% to 3% growth.
For the quarter, Hilton posted adjusted earnings of $2.29 per share, up from $2.20 per share during the same quarter last year. That figure matched what Wall Street analysts had anticipated.
Total revenue for the three months ending June 30 came in at $3.34 billion, a 6.5% increase year-over-year. Analysts had projected revenue of approximately $3.33 billion on average.
