Hilton’s stock falls premarket after 2024 guidance falls short of estimates

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Hilton Worldwide Holdings Inc.’s stock was down 0.8% early Wednesday, after the hotel operator’s guidance for 2024 came up short of estimates and overshadowed a fourth-quarter profit beat.

The company
posted net income of $148 million, or 57 cents a share, for the quarter, down from $328 million, or $1.21 a share, in the year-earlier period. Adjusted per-share earnings came to $1.68, ahead of the $1.57 FactSet consensus.

Revenue rose to $2.609 billion from $2.444 billion a year ago, and matched the FactSet consensus.

Systemwide revenue per available room rose 5.7% on a currency-neutral basis and was up 13.5% compared to the same period in 2019, before the onset of the COVID-19 pandemic.

“Positive momentum in openings continued throughout the year, with more openings in the fourth quarter than any other quarter in the company’s history,’ CEO Christopher J. Nassetta said in a statement.

Hilton is now expecting systemwide RevPAR to climb 2% to 4% for all of 2024 on a currency neutral basis. It expect EPS to range from $6.57 to $6.71 and for adjusted EPS to range from $6.80 to $6.94. The FactSet consensus is for EPS of $7.05.

For the first quarter, it expects adjusted EPS of $1.36 to $1.44, while FactSet is expecting $1.42.

The company also announced a new partnership with Small Luxury Hotels of the World, a group of 560 luxury boutique hotels spanning 90 countries. Under the terms of their deal, Hilton guests will be able to book and earn and redeem points for stays at those hotels.

“These locations are highly complementary to Hilton’s vast network of hotels and will give guests access to additional luxury accommodations in hundreds of new destinations,” the company said in a separate statement.

The stock has gained 31.3% in the last 12 months, while the S&P 500
has gained 19%.

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