Oct 27 (Reuters) - Hotel operator Hilton Worldwide Holdings raised annual room revenue growth forecast on Tuesday, betting that steady US travel demand will support growth across its properties.
Wealthy consumers continued to spend on luxury experiences, while demand for mid-scale and budget hotels also improved during the quarter as leisure travel held up despite stubborn inflation and geopolitical uncertainty, including the conflict in the Middle East.
Business travel also remained robust, benefiting hotel operators such as Hilton.
Spending on travel, according to US Travel Association, rose 2.5% in August compared with the year-ago period.
Hilton's revenue per available room, or revPAR, at its luxury properties Waldorf Astoria and LXR rose 13.9% and 14.3% respectively, during the quarter.
The McLean, Virginia-based company expects revenue per available room — a key lodging metric that tracks average daily rate and occupancy — to grow between 4% and 4.5% for fiscal 2026, compared with its previous forecast of a 3% to 3.5% increase.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Shilpi Majumdar)