HILTON’S 2024 EARNINGS FORECAST FALLS SHORT OF ANALYST ESTIMATES

HILTON’S 2024 EARNINGS FORECAST FALLS SHORT OF ANALYST ESTIMATES

Hilton Worldwide Holdings Inc. reported projections fоr 2024 that fell short оf expectations, аs travel demand normalized following thе uрs аnd downs since thе start оf thе pandemic.

  • The company is projecting adjusted earnings per share between $6.80 and $6.94 this year, according to a statement Wednesday. That’s below an average analyst estimate of $7.02. Hilton’s guidance for net income topped estimates.

Key insights

  • Hilton, led by Chief Executive Office Christopher Nassetta, reported adjusted earnings per share of $1.68 in the fourth quarter of 2023. That compares with the average analyst estimate of $1.57, according to data compiled by Bloomberg.
  • The company has been hunting for deals as a way to use capital. Hilton, which has generally sought to build brands internally, is in talks to acquire the campus-focused brand Graduate Hotels, and is also a potential buyer for NoMad Hotels, Bloomberg has reported.
  • Hotel companies have recovered from the lows of the pandemic when travel froze up and international tourism has boosted results recently. Hilton’s revenue per available room, a key profitability metric, increased by 5.7% from the fourth quarter of 2022.

Market reaction

  • Hilton shares have surged by more than 50% since the beginning of 2023, outpacing a 37% increase in a Bloomberg index of Americas lodging companies.

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2024-02-08 02:04

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