Hilton Trims Revenue Outlook as U.S. Travel Demand Softens

Hilton Worldwide modestly trimmed its annual room revenue forecast amid signs of cooling domestic travel demand and broader economic pressures affecting consumer spending.

The hotel operator said Wednesday it now expects revenue per available room to grow between 2% and 2.5% this year, down from its August projection of between 2% and 3% and an April projection of between 2% and 4%.

The revised outlook comes after Hilton reported slower third-quarter revenue growth, with revenue per available room increasing just 1.4% compared to the same period last year.

Net income was $344 million for the third quarter, down from $379 million a year earlier.

Executives said the slower-than-hoped-for top-line growth was driven by “modestly slower macro trends, weather impacts, and unfavorable calendar shifts.”

Looking ahead, president and CEO Christopher Nassetta was modestly optimistic about the next year.

“I think when you finish ’25, at least sitting here today, it will feel an awful lot like ’24,” Nassetta said.

Nassetta speculated that, next year, leisure travel demand will lead to 2% year-over-year growth in revenue per available room, that business travelers will be in “the low single digits, but higher than one [percent], and that group bookings will grow in the mid-single digits.

“I think leisure [travel demand] is positive but very, very modestly positive,” he said. “There is a very broad consensus view that the U.S. economy will continue to remain strong, resilient and show positive growth.”

By segment, Nassetta said he expected the U.S.’s hotel performance next year to be similar to this year’s, Asia Pacific’s to be better, and Europe to be a little weaker “but not a problem.”

UPDATE: Article was updated after an earnings call to add commentary from Nassetta.

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