July 28 (Reuters) - Hilton Worldwide Holdings raised its forecast for full-year room revenue growth on Tuesday as demand from its luxury properties remained robust.
Wealthier households have continued to spend on luxury experiences despite persistent inflationary pressures and weaker revenue from the Middle East region.
The recently concluded FIFA World Cup, held in the U.S., Canada and Mexico, also boosted tourism in the region and pricing for hotel operators during the quarter.
While Hilton said its
outlook reflected expected third-quarter benefits from the World Cup, it expects the fourth quarter to be affected by unfavorable calendar shifts and midterm elections. Its shares were marginally lower in premarket trading.
Room revenue from its Middle East and Africa region plummeted 29.5% from the year-ago period.
Uncertainty over the second half of the year amid prolonged wars has dampened travel to the region as the conflict enters its fifth month.
Hilton's revenue per available room at its mid-scale and budget hotels rose in the second quarter, along with that at its luxury properties such as LXR and Conrad.
The McLean, Virginia-based hotel operator expects RevPAR — a key lodging metric that tracks average daily rate and occupancy — to grow between 3% and 3.5% for fiscal 2026, compared with its previous forecast of 2% to 3%.
On an adjusted basis, Hilton earned $2.29 per share for the quarter, compared with $2.20 a year earlier. Analysts expected the company to post a profit of $2.29 per share.
Total revenue for the quarter ended June 30 was $3.34 billion, up 6.5% from a year earlier. Analysts, on average, estimated the company's revenue at $3.33 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)
