Hilton Rises After Reporting a Dividend and Higher Profit
Hilton Worldwide Holdings rose the most in 19 months after the hotel company reported second-quarter earnings that beat analysts’ estimates and said it will begin paying a dividend.
Adjusted earnings per share rose to 25 cents from 21 cents a year earlier, the US-based company said in a statement.
The average estimate of 19 analysts was for 23 cents a share. Hilton, which went public in December 2013, said it will pay a quarterly dividend of 7 cents a share.
Hilton’s earnings report reassured some analysts who were concerned that disappointing results by lodging real estate investment trusts including LaSalle Hotel Properties might be a sign of flagging demand in the industry. Carlo Santarelli, an analyst with Deutsche Bank AG, said Hilton’s strong quarter makes it an attractive entry to the hotel market for investors.
“We believe the report should be very well received and soothe burgeoning concerns about a near-term slowdown fueled by a few hotel REITs that recently reported,” said Santarelli, who has a buy rating on the shares.
News by Bloomberg, edited by Hospitality Ireland