FILE PHOTO: The logo of Hilton hotel is seen in Batumi, Georgia, May 2, 2016. REUTERS/David Mdzinarishvili/File Photo
(Reuters) – U.S. hotel operator Hilton Worldwide Holdings Inc (HLT.N) topped Wall Street estimates for quarterly profit on Wednesday, helped by a steady demand for its rooms in the United States.
However, the owner of Waldorf Astoria and Conrad hotel chains lowered the high end of its 2019 outlook for RevPAR – a key performance metric for the hotel industry – amid slowing global economies.
The International Monetary Fund on Tuesday lowered its estimate for global growth in 2019, as the U.S.-China trade spat and Brexit uncertainties are seen eroding business confidence and weakening investment spending.
The slowing growth directly affects travel budgets of corporates.
Hilton said it now expects full-year RevPAR to increase between 1% and 2%, down from an earlier range of 1.0% to 3.0% rise.
The company now expects adjusted earnings for 2019 between $3.78 and $3.85 per share, compared to their previous forecast of $3.74 to $3.84 per share.
Hilton’s net income attributable to stockholders rose to $260 million, or 89 cents per share, in the second quarter ended June 30, from $217 million, or 71 cents per share, a year earlier.
On an adjusted basis, Hilton earned $1.06 per share in the quarter beating analysts’ average estimate of $1.02 per share, according to IBES data from Refinitiv.
Revenue rose 8.4% to $2.48 billion.
Reporting by Ashwini Raj and Ankit Ajmera in Bengaluru; Editing by Shailesh Kuber