Updated Version 3 - Hilton’s quarterly revenue falls short of expectations and warns that Middle East tensions will have an impact

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Reuters, October 27 - Hilton Worldwide Holdings (HLT.N) on Tuesday reported third-quarter revenue below market expectations and warned that the U.S. midterm elections and the conflict in the Middle East could weigh on its fourth-quarter results, sending its shares down 5% in premarket trading.

During the reporting period, stable demand for leisure and business travel supported hotel spending across all price segments—from economy to luxury accommodation—but recent attacks between the U.S. and Iran have brought new uncertainty to the travel industry (link).

The McLean, Virginia-based hotel operator reported that in the quarter ended September 30 , RevPAR in the Middle East and Africa fell 5.6% year-over-year, while U.S. RevPAR grew by 7%.

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Last month, Marriott International MAR.O CEO Anthony Capuano said the decline in hotel revenue in the Middle East eased in July (link). While ongoing conflicts have delayed development projects, this signaled an early sign of improvement for the industry.

However, Hilton said it still expects to continue expansion in the Middle East and Africa, having signed more than 20 agreements in the third quarter.

RevPAR forecast raised

Hilton's luxury brands Waldorf Astoria and LXR saw RevPAR—a key lodging metric reflecting average daily rate and occupancy—increase by 13.9% and 14.3% respectively in the quarter.

The company now expects fiscal 2026 RevPAR to rise 4% to 4.5%, up from its previous forecast of 3% to 3.5%.

According to data compiled by the London Stock Exchange Group (LSEG), Hilton reported adjusted earnings per share this quarter of $2.45, higher than last year's $2.11 and also above the analyst consensus average of $2.36.

Total revenue was $3.33 billion, up 6.6% from a year earlier but below the consensus estimate of $3.37 billion.

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