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Hilton Trims Revenue Outlook as U.S. Travel Demand Softens

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Hilton Trims Revenue Outlook as U.S. Travel Demand Softens

A king deluxe corner suite river view bedroom at the Hilton Saigon. Hilton Hotels

Hilton Worldwide modestly trimmed its annual room revenue forecast amid signs of cooling domestic travel demand and broader economic pressures affecting consumer spending.

The hotel operator said Wednesday it now expects revenue per available room to grow between 2% and 2.5% this year, down from its August projection of between 2% and 3% and an April projection of between 2% and 4%.

The revised outlook comes after Hilton reported slower third-quarter revenue growth, with revenue per available room increasing just 1.4% compared to the same period last year.

Net income was $344 million for the third quarter, down from $379 million a year earlier.

Executives said the slower-than-hoped-for top-line growth was driven by “modestly slower macro trends, weather impacts, and unfavorable calendar shifts.”

Despite the softening revenue outlook, Hilton continued its expansion, adding a record 36,600 rooms in the third quarter. The company’s development pipeline grew to 492,400 rooms, up 8% from a year earlier, highlighting its focus on long-term growth even as near-term travel demand moderates.

Accommodations Sector Stock Index Performance Year-to-Date

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