(Reuters) – Hotel operator Hilton Worldwide on Wednesday lowered its revenue per room and profit forecasts for 2024, citing weak demand in the United States and China.
The American group’s action fell 4.7% in pre-market trading and that of its competitor Marriott International lost 3.5% in its wake.
Global travel demand has been weak since the start of the year, as mistrust of macroeconomic trends has led U.S. and Chinese consumers to cut their budgets, opt for low-cost solutions, or even forgo their travel plans.
Hilton’s revenue per available room (RevPAR), a key industry metric, increased 1.4% in the third quarter from a year earlier.
It fell by 3.4% in Asia and increased by 1% in the United States.
“We are pleased to have delivered continued strong results that exceeded our forecasts, despite slower revenue growth, linked to a slight slowdown in macroeconomic trends, the impact of weather conditions and changes unfavorable schedules,” said Hilton CEO Christopher Nassetta.
Against this backdrop, the company expects revenue per room growth in 2024 to be between 2% and 2.5%, compared to a previous range of 2% to 3%.
On an adjusted basis, Hilton reported earnings per share of $1.92 (1.8 euros) in the third quarter, while analysts on average expected $1.85, according to data compiled by LSEG.
The hotel operator’s quarterly net profit fell 9% to $344 million.
Hilton says it now expects annual net income of between $1.4 billion and $1.42 billion, up from a previous forecast of $1.53 billion to $1.56 billion.
(Reporting by Aishwarya Jain in Bangalore and Doyinsola Oladipo in New York; Diana Mandiá, editing by Kate Entringer)
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