Hotel operator Hilton has raised its full-year profit forecast after reporting a better-than-expected quarterly profit on the back of a rebound in travel demand. The hotel industry has benefited from people spending on travel as well as hotel stays, though rising interest rates and tight financial conditions are stoking fears of a recession.
However, credit card and other data indicate that travel demand is likely to remain robust. The hotel operator said it expects net income of $1.15 billion to $1.22 billion this year, compared to its previous guidance of $1 billion to $1.07 billion. The Virginia-based company expects full-year capital return between $1.5 billion and $1.9 billion, compared to its prior guidance of $1.4 billion to $1.8 billion.
The company expects its full-year system-wide comparable RevPAR, or revenue per available room, to increase between 37% and 43% compared to a year earlier. Hilton reported revenue of $2.24 billion for the second quarter, compared with average analysts’ expectations of $2.08 billion, according to Refinitiv data.
On an adjusted basis, the company earned $1.29 per share, better than the average analyst expectation of $1.04.