Key facts
- Hilton's third-quarter revenue of $3.33 billion missed estimates of $3.37 billion.
- The company warned that the Middle East conflict and US midterm elections could impact fourth-quarter performance.
- Room revenue from the Middle East and Africa region dropped 5.6% year-over-year.
- Luxury property RevPAR rose over 13% in the third quarter.
- Adjusted per-share profit was $2.45, beating estimates of $2.36.
Hilton Worldwide Holdings missed third-quarter revenue estimates on Tuesday and warned that US midterm elections and the Middle East conflict could weigh on its performance in the fourth quarter, sending shares of the hotel operator down 5%. The latest escalation in the US-Iran war has heightened uncertainty for hotel operators and online travel agencies, overshadowing otherwise resilient leisure and business travel demand that supported spending across hotel segments, from budget accommodations to luxury stays, in the third quarter. Hilton's room revenue from the Middle East and Africa region dropped 5.6% year-over-year in the quarter ended September 30, while for the US rose 7%. The company expects revenue per available room to grow between 4% and 4.5% for fiscal 2026, versus its previous forecast of a 3%-3.5% increase. RevPAR at its luxury properties Waldorf Astoria and LXR rose 13.9% and 14.3%, respectively, during the third quarter. Hilton forecast 2026 net unit growth at 6%-7%.