Hilton Worldwide Holdings Inc on Wednesday 26 October raised its annual profit forecast after third-quarter earnings topped estimates, as people eager to travel after the pandemic set aside recession worries to book flights and hotels.
The hospitality industry is benefiting from US consumers spending more on travel emboldened by a strong dollar and more flexible work arrangements that allow them to work from wherever they want, extending the travel season into the fall.
"We expect these strong trends to continue throughout the fourth quarter with system-wide RevPAR (revenue per available room) once again exceeding prior peaks," Hilton chief executive officer Christopher Nassetta said.
Hilton, which owns several brands including the Waldorf Astoria Hotels & Resorts, said it now expects net income between $1.22 billion and $1.24 billion this year, compared with its previous forecast of $1.15 billion and $1.22 billion.
The company said it expects 2022 adjusted earnings per share for 2022 between $4.46 and $4.54 compared with $4.21 and $4.46 forecast earlier, as it benefits from strong pricing power amid resilient travel demand.
Rise In Third-Quarter Profit
The Virginia-based company reported a 44% rise in third-quarter profit, or $1.31 per share, beating analysts' estimates of $1.24 per share, according to Refinitiv data.