Hilton lowered the upper end of its annual room revenue growth forecast on Wednesday, as some US consumers cut back on domestic travel spending amid a drop in disposable income.
Shares in Hilton fell over 5% before the bell on Wednesday.
Domestic travel demand in the US has been facing challenges since the beginning of the year as Americans remain wary of major expenses such as travel due to depleting savings and rising credit card debt.
Many travelers have also been trading down, picking low-cost and budget alternatives in lieu of full-service hotels.
Hilton expects its system-wide 2024 room revenue growth to be between 2% and 2.5%, compared with its prior range of 2% to 3% increase.
It reported a third-quarter profit of $1.92 per share, compared with $1.67 per share a year earlier.
Total revenue for the quarter ended Sept. 30 was $2.87 billion, up from $2.67 billion a year earlier.
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