Hilton Worldwide Holdings (NYSE:HLT) shares declined 2.68% in premarket trading on Tuesday after the hotel operator reported third-quarter revenue below analyst expectations, despite adjusted earnings per share exceeding forecasts.
The company posted adjusted earnings of $2.45 per share, compared with the consensus estimate of $2.35. Quarterly revenue increased 6.4% year over year to $3.33 billion, falling short of analysts’ expectations of $3.36 billion.
Hilton also issued full-year adjusted EBITDA guidance below market expectations, reflecting revised assumptions for its Middle East operations and timeshare licensing fees.
Meanwhile, the company reported higher comparable revenue per available room, continued expansion of its hotel network and shareholder distributions totaling $879 million.
Hilton recorded adjusted earnings per share of $2.45 during the third quarter, exceeding the analyst consensus estimate of $2.35 by $0.10.
Revenue reached $3.33 billion, representing an increase of 6.4% from the $3.12 billion reported in the corresponding quarter of 2025.
However, the revenue figure was below the $3.36 billion anticipated by analysts.
The results showed year-over-year growth in revenue and adjusted earnings above expectations, although total revenue did not meet the market forecast.
Hilton reported a 5.8% increase in system-wide comparable revenue per available room, or RevPAR, during the third quarter.
The increase was measured on a currency-neutral basis against the corresponding period of the previous year.
According to the company, growth was supported by improvements in both hotel occupancy and average daily room rates.
RevPAR is a measure of hotel revenue performance that incorporates room pricing and occupancy levels.
The quarterly increase reflected higher revenue generated per available room across Hilton’s comparable hotel portfolio.
Hilton forecast adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between $4.06 billion and $4.08 billion for 2026.
The midpoint of the guidance range is $4.07 billion, below the analyst consensus estimate.
The company’s forecast incorporates reduced expectations for operating performance in the Middle East and revenue from timeshare licensing fees.
These adjustments contributed to the difference between Hilton’s full-year EBITDA outlook and market expectations.
The company did not provide a separate numerical breakdown of the impact from each factor in the supplied announcement.
Hilton President and Chief Executive Officer Christopher J. Nassetta commented on the company’s third-quarter performance and expectations for the remainder of the year.
“We delivered strong top and bottom-line results for the third quarter that exceeded our expectations,” Nassetta said.
He added:
“Our results were driven by momentum across our system, which we expect to continue for the remainder of the year and into 2027.”
The comments reflected management’s assessment of Hilton’s operating performance and its expectations for the hotel network.
Hilton expects system-wide comparable RevPAR to increase between 4.0% and 4.5% for the full year 2026.
The forecast is measured on a currency-neutral basis compared with 2025.
The company also expects adjusted earnings per share of between $9.07 and $9.13.
Full-year net income is projected to range from $1.91 billion to $1.92 billion.
Adjusted EBITDA is expected to total between $4.06 billion and $4.08 billion.
These forecasts reflect Hilton’s updated expectations for hotel revenue performance, profitability and operating conditions through the end of the year.
Hilton continued expanding its global hotel network during the third quarter.
The company added approximately 27,000 rooms to its system.
After accounting for removals, net room additions totaled approximately 23,000.
The expansion contributed to net unit growth of 6.0% compared with September 30, 2025.
The figures indicate continued growth in Hilton’s room portfolio alongside the increase in comparable RevPAR.
Hilton reported returning $879 million to shareholders during the third quarter through share repurchases and dividend payments.
The total represents the combined amount distributed through these two methods.
The supplied information does not specify the individual amounts allocated to share buybacks and dividends.
The shareholder distributions occurred alongside the company’s continued hotel network expansion and quarterly revenue growth.
Hilton shares fell 2.68% in premarket trading on Tuesday following the release of its third-quarter financial results.
The decline came despite adjusted earnings per share exceeding analyst expectations and comparable RevPAR increasing 5.8%.
However, quarterly revenue fell below consensus forecasts, while the company’s full-year adjusted EBITDA guidance was also lower than market expectations.
The available information does not establish a single cause for the share price movement.
Hilton’s third-quarter report showed higher revenue, improved comparable RevPAR and continued growth in its global room portfolio.
The company also reported adjusted earnings above forecasts, although revenue missed expectations and its full-year adjusted EBITDA outlook was below consensus estimates.
For 2026, Hilton expects comparable RevPAR growth of 4.0% to 4.5%, adjusted earnings per share of $9.07 to $9.13 and adjusted EBITDA of $4.06 billion to $4.08 billion.
Subsequent results will provide further information about performance in the Middle East, timeshare licensing fees, hotel occupancy, room rates and progress against the company’s annual guidance.
Hilton Worldwide Holdings stock price
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