A view of the DoubleTree by Hilton Hotel located on King Street in London, Ontario. (Photo credit: Daryl Newcombe, CTV News London)
Hilton Worldwide has raised its full-year profit forecast for 2025, driven by early signs of recovery in U.S. travel demand, which had previously slowed down. Despite this optimistic outlook for the full year, the company’s prediction for the upcoming third quarter didn’t quite match Wall Street’s expectations, nudging its stock price down by 1.5% on Wednesday.
U.S. travel, Hilton’s biggest market, took a hit earlier this year, with March showing a sharp dip—something that also affected airlines like Delta and United. Many attribute the slowdown to political uncertainty and economic shifts. However, recent months have brought a more hopeful tone.
“We’re finally starting to notice signs that travel demand is slowly picking back up,” said Hilton CEO Christopher Nassetta during a post-earnings call. He mentioned that he expects conditions to begin returning to normal by the end of this year.
Hilton recently reopened its famous Waldorf Astoria hotel in New York after an eight-year renovation, a move that reflects confidence in the long-term future of travel and luxury lodging. The company posted solid second-quarter numbers, reporting a profit of $2.20 per share—higher than analysts’ estimates of $2.04, according to LSEG data.
Hilton’s total revenue for the second quarter, ending June 30, reached $3.14 billion. That’s a 6.3% increase compared to the same period last year. However, not everything was positive. Room revenue in the U.S. slipped by 1.5% year-over-year, signaling that the domestic market is still healing.
Looking ahead to the third quarter, Hilton expects to earn between $1.98 and $2.04 per share. That’s below what analysts were predicting, which was $2.13. This cautious forecast is part of why investor reactions were lukewarm.
Still, Hilton is actively planning for future growth. CEO Nassetta revealed that at least two new brands are in the pipeline before year’s end. These would involve rebranding existing hotels, rather than building new ones from scratch—an efficient way to expand the company’s presence.
Despite these moves, some analysts remain skeptical. Richard Clarke from Bernstein pointed out that Hilton would need to open a record number of new rooms in the second half of the year to even hit the lower end of its 2025 net unit growth target, which stands at 6% to 7%.
In terms of full-year expectations, Hilton now forecasts a profit between $7.83 and $8 per share, slightly higher than its previous range of $7.76 to $7.94. The company’s future will depend on how fast U.S. travel demand recovers and whether Hilton can expand quickly enough to meet its growth promises.
