By Anshuman Tripathy
July 28 (Reuters) - Hilton Worldwide Holdings raised its forecast for full-year room revenue growth on Tuesday, betting on growing travel demand, including a boost from the recent World Cup.
Wealthier households have continued to spend on luxury experiences despite persistent inflation and weaker revenue from the Middle East region.
Room revenue from its Middle East and Africa region plummeted 29.5% as prolonged wars have dampened travel to the region where conflict has entered
its fifth month, creating uncertainty over the second half of the year.
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 potential benefits from the World Cup for its third-quarter results, it expects the fourth quarter to be affected by "unfavorable calendar shifts" and midterm elections.
"The beat and raise continues to reflect the business model strength although the shifting calendar and demand trends included in the second half of the year guide should be neutral for the shares given the recent softness the past 40 days," said Jefferies analyst David Katz.
Hilton's revenue per available room rose across its segments, including luxury, mid-scale and budget hotels, in the second quarter.
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, higher than $2.20 a year earlier and in line with analysts' estimates, according to data compiled by LSEG.
Total revenue for the quarter ended June 30 was $3.34 billion, up 6.5% from a year earlier, compared with estimates of $3.33 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)
