Hilton Worldwide Holdings posted fourth-quarter results that beat analysts' profit expectations, supported by sustained demand at its luxury properties even as lower-priced segments weakened. The company said on Wednesday that it now expects 2026 room revenue growth to come in below Wall Street's consensus, citing softer spending from budget-conscious travelers.
Chief Executive Officer Christopher Nassetta highlighted mixed performance across the portfolio. "Systemwide RevPAR (a key lodging metric that tracks average daily rate and occupancy) increased 50 basis points year-over-year for the quarter as strong international performance and solid group demand were offset by softer U.S. government demand and weaker international inbound into the country," he said.
Hilton described a divergence in guest behavior: travelers with greater spending capacity continue to invest in premium experiences at the company’s luxury brands, which include Waldorf Astoria and Conrad, driving higher-margin revenue that offset declines at the mid-scale and budget segments. By contrast, consumers focused on value have cut back amid a tougher economic backdrop, weighing on demand at the company’s lower-priced properties.
The company reported adjusted earnings per share of $2.08 for the quarter, up from $1.76 a year earlier and above the average analyst forecast of $2.02. Quarterly revenue totaled $3.09 billion, compared with $2.78 billion in the prior year period and exceeding the consensus estimate of $2.99 billion.
For the full year, Hilton now anticipates room revenue growth of 1% to 2%. That guidance sits below analysts' mean projection of 2.05%, based on data compiled by LSEG. The company also noted that its first-quarter RevPAR forecast reflects the effects of recent storms in the continental United States.
Hilton pointed to an expected uptick in foreign visitors as the United States prepares to host the FIFA World Cup this year, a trend that peers have also cited as a potential boost to global RevPAR. Earlier this week, Marriott signaled similar World Cup-driven growth in its global RevPAR.
Market reaction was mutedly positive, with Hilton shares rising as much as 2.2% in morning trade. Raymond James analyst RJ Milligan commented that much of the recent earnings optimism may already be reflected in sector valuations after a strong showing from peers.
Financial snapshot
- Adjusted EPS: $2.08 in the fourth quarter, up from $1.76 a year ago (analysts expected $2.02).
- Quarterly revenue: $3.09 billion, versus $2.78 billion a year earlier (analysts expected $2.99 billion).
- Full-year room revenue growth guidance: 1% to 2% (analysts' estimate: 2.05% per LSEG).
- Systemwide RevPAR change: +50 basis points year-over-year for the quarter.