Hilton Inc (NYSE:HLT) shares fell more than 2% in pre-market trading on Tuesday after the hotel operator delivered second-quarter results broadly in line with market expectations but issued a weaker-than-expected earnings outlook for the third quarter.
The company reported second-quarter earnings per share of $2.29, narrowly exceeding the analyst consensus estimate of $2.26. Revenue totalled $3.34 billion, broadly matching expectations of $3.33 billion.
System-wide comparable Revenue Per Available Room (RevPAR) increased 3.9% on a currency-neutral basis compared with the same period last year, while adjusted EBITDA reached $1.05 billion.
Hotel Development Pipeline Continues to Expand
Hilton approved 42,900 additional rooms for development during the quarter, increasing its global pipeline to 541,300 rooms as of 30 June, a 6% increase from a year earlier.
The company added 24,100 rooms to its portfolio during the quarter, resulting in net additions of 21,600 rooms and year-over-year net unit growth of 6.1%.
“We delivered strong top and bottom-line results for the second quarter, driven by the continuation of strengthening demand trends and broad-based momentum across our system, which we expect to continue for the remainder of the year and into 2027,” said CEO Christopher Nassetta.
Third-Quarter Earnings Guidance Disappoints
For the third quarter, Hilton expects diluted earnings per share, adjusted for special items, to range between $2.28 and $2.34.
The forecast falls below the analyst consensus estimate of $2.43.
Management also expects system-wide comparable RevPAR growth of around 4% and adjusted EBITDA of between $1.04 billion and $1.05 billion during the quarter.
Full-Year Outlook Reflects Seasonal Factors
For full-year 2026, Hilton forecasts earnings per share of between $8.89 and $9.01, compared with the analyst consensus estimate of $9.01.
The company expects system-wide comparable RevPAR growth of between 3.0% and 3.5%, alongside adjusted EBITDA of $4.04 billion to $4.08 billion.
Hilton said its outlook incorporates anticipated benefits in the third quarter from the FIFA World Cup and favourable calendar timing. However, the company expects those gains to be partially offset in the fourth quarter by less favourable calendar effects and the impact of the US midterm elections.
The company also reaffirmed expectations for full-year net unit growth of between 6.0% and 7.0%, with a stronger pace of expansion anticipated during the second half of the year.
Hilton stock price
