Hilton Worldwide Holdings Inc. said profit fell in its latest
quarter as higher expenses offset revenue growth.
The adjusted per-share earnings result topped the company's
guidance. Systemwide revenue per available room—or RevPAR—a key
industry gauge, rose a currency-adjusted 5.2%. The increase, at the
low-end of the company's forecast, beat analysts' expectations.
The Virginia-based company has pushed growth recently by
launching a new boutique hotel chain to attract a wider audience
and adding hotels in markets including Latin America, where
economic growth in some areas is driving demand for new lodging.
More than half of the chain's roughly 250,000 rooms are located
outside of the U.S.
Hilton said that over the quarter, net unit growth was about
11,000 rooms—up 56% from a year earlier. The company approved
24,000 new rooms for development during the second period.
In all for the quarter, Hilton reported a profit of $161
million, or 16 cents a share, down from $209 million, or 21 cents,
a year earlier. Excluding certain items, like a loss on a capital
lease amendment, per-share profit rose to 25 cents. Revenue grew
9.6% to $2.92 billion.
The company had projected 21 cents to 23 cents in per-share
profit and RevPAR growth of 5% to 7%. Analysts surveyed by Thomson
Reuters expected $2.92 billion in revenue.
Expenses jumped 11.6%.
Systemwide occupancy during the quarter was 79.2%, up 1.3
percentage points from a year earlier, with growth in all
regions.
The hotel chain modestly lifted its full-year guidance range,
now anticipating 80 cents to 84 cents in adjusted earnings per
share, up from an earlier range of 79 cents to 83 cents and still
bracketing the average analyst estimate. Hilton backed its 5% to 7%
RevPAR growth forecast for the year.
For the current quarter, the company predicts 21 cents to 23
cents in adjusted per-share profit and 4.5% to 6.5% RevPAR growth.
Analysts are looking for 23 cents in third-quarter earnings per
share.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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