Hilton Q2 Sales Rise 6.5% on Mid-Range Hotel Boom, AI Infrastructure Drives Occupancy
HLT sits 27% above its 52-week low of $253.54.
Summary
Hilton's Q2 revenue rose 6.5% to $3.34B, beating estimates, with adjusted EPS of $2.29 topping the $2.27 consensus. The standout driver was a resurgence in U.S. mid-scale hotels, where demand flipped from negative to positive year-over-year, fueled by AI infrastructure projects bringing in contractors and engineers. System-wide RevPAR grew 3.9%, led by a 5% U.S. jump, though Middle East/Africa RevPAR plunged nearly 30% due to the Iran conflict. Full-year adjusted EPS guidance was raised to $8.89-$9.01, and RevPAR growth outlook lifted to 3%-3.5%. Despite the beat, shares fell 4% as some investors hoped for stronger RevPAR and viewed guidance as disappointing. The Q3 outlook includes a World Cup boost, partially offset by expected midterm election headwinds in Q4.
At the time of this announcement, HLT was trading at $320.95 on NYSE in the Trade & Services sector, with a market capitalization of approximately $73.1B. The 52-week trading range was $253.54 to $358.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.