Updated version 2 - Hilton quarterly revenue falls short of expectations, warns of impact from Middle East situation

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Reuters, October 27 - Hilton Worldwide Holdings Inc (HLT.N) reported third-quarter revenue that missed expectations on Tuesday, and said that the impact of the U.S. midterm elections and escalating tensions in the Middle East could affect its fourth-quarter performance, sending its shares down 5% in premarket trading.

Although steady leisure and business travel demand during the reporting period supported hotel spending across all price segments—from economy to luxury—recent Iran-U.S. tensions (link) have brought new uncertainties to the travel industry, casting a shadow on the outlook.

The hotel operator based in McLean, Virginia, saw room revenue in the Middle East and Africa fall by 5.6% year-over-year in the quarter ended September 30, while U.S. room revenue rose by 7%.

Hilton's luxury hotel brands, Waldorf Astoria and LXR, saw revenue per available room (RevPAR)—a key lodging metric reflecting average daily rate and occupancy—rise by 13.9% and 14.3% respectively this quarter.

The company forecasts revenue per available room (RevPAR) growth for fiscal 2026 at 4% to 4.5%, up from a previous forecast of 3% to 3.5%.

Adjusted earnings per share for Hilton rose to $2.45 from $2.11 a year earlier. According to data compiled by London Stock Exchange Group (LSEG), analysts' average expectation was $2.36.

Total revenue reached $3.33 billion, up 6.6% from a year ago but below the expected $3.37 billion.

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