Key facts
- Hilton Worldwide Holdings raised its full-year room revenue growth forecast.
- Strong demand from luxury properties is a key driver of the improved outlook.
- The FIFA World Cup provided a boost to tourism and pricing in the second quarter.
- Hilton's revenue per available room (RevPAR) is now expected to grow between 3% and 3.5% for fiscal 2026.
- The company's previous forecast for fiscal 2026 RevPAR growth was 2% to 3%.
Hilton Worldwide Holdings has raised its annual room revenue growth forecast, citing strong demand from its luxury properties and the positive impact of the FIFA World Cup. Despite a significant drop in revenue from its Middle East and Africa region, the company's overall performance has been bolstered by resilient consumer spending, particularly among higher-income travelers who continue to prioritize experiences.
Hilton's CEO Christopher Nassetta noted that mid-scale hotels also saw a turnaround, benefiting from business and group travel. The World Cup contributed approximately 1.7% to Hilton's second-quarter revenue per available room (RevPAR). The company now anticipates RevPAR growth between 3% and 3.5% for fiscal 2026, an upward revision from its previous forecast of 2% to 3%.
Other travel firms, including cruise operator Royal Caribbean and airline JetBlue Airways, also reported resilience. Royal Caribbean raised its annual profit forecast despite a 27% increase in fuel expenses, while JetBlue managed to recover more fuel costs than anticipated due to stronger demand and higher fares, even as its fuel bill surged by 81%. Experts suggest that luxury and travel remain highly resilient sectors, with consumers reluctant to cut back on vacations.