Hilton surpasses Q4 profit estimates as business travel demand soars, shares rise 5%

GLOBAL – Hilton Worldwide surpassed Wall Street’s fourth-quarter profit estimates, driven by strong business travel demand that boosted bookings, sending its shares up 5% in morning trading.

Hilton reported strong bookings for corporate meetings, conventions, and social events, which contributed to higher room rates.

“Business transient revenue per available room (RevPAR) rose by over 3%, driven by a sustained recovery among large corporate clients, with major technology firms and financial institutions performing particularly well,” a Hilton executive stated during the company’s post-earnings conference call.

Despite an expected slowdown following the post-pandemic travel surge, leisure travel demand exceeded forecasts.

“Despite a mixed operating landscape for the industry, Hilton continues to show solid growth momentum by introducing new brands in emerging markets,” noted Jefferies analyst David Katz.

In November, Hilton launched its Spark brand in India and outlined plans to increase its hotel room count in the country fourfold over the next five years.

The McLean, Virginia-based hospitality giant reported an adjusted fourth-quarter profit of US$1.76 per share, surpassing analysts’ estimates of US$1.68, as per LSEG data.

The company’s total revenue reached US$2.78 billion, slightly exceeding the projected US$2.77 billion.

In its key U.S. market, RevPAR grew by 2.9% year-over-year in the fourth quarter, while the Asia-Pacific region showed signs of recovery with a 1.7% increase, rebounding from a 3.4% decline in the previous quarter.

Hilton’s development pipeline expanded by 8%, reaching 498,600 rooms during the quarter. The company now expects net unit growth between 6% and 7% in 2025.

Operating across 126 countries, Hilton offers a diverse portfolio of brands spanning luxury to economy segments, enabling it to attract a broad customer base and strengthen brand loyalty.

The company has focused on expanding its global presence through an asset-light management and franchise model, allowing for scalable growth without substantial investment in physical assets—an approach that enhances resilience in fluctuating economic conditions.

Looking ahead, Hilton forecasts RevPAR growth of 2% to 3% in the coming year, reflecting cautious optimism amid economic uncertainties.

The company projects net income between US$1.829 billion and US$1.858 billion, with an adjusted EBITDA outlook ranging from US$3.7 billion to US$3.74 billion, indicating a positive earnings trajectory supported by cost management and revenue expansion strategies.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.