Hilton Worldwide Holdings Inc. ( HLT ) shares are trading lower after the company reported third-quarter results.

The company reported adjusted earnings per share of $1.92, beating the analyst consensus estimate of $1.85. Quarterly revenues of $2.867 billion missed the street view of $2.905 billion.

For the three months ending September 30, 2024, RevPAR across the system rose 1.4% from the same time last year, driven by higher occupancy and ADR. Additionally, management and franchise fee revenues grew by 8.3%.

Adjusted EBITDA was $904 million, higher than $834 million for the same period in 2023. Quarterly net income was $344 million, lower than $379 million year over year.

“We continued to demonstrate the strength of our model, opening more rooms than any other quarter in our history, surpassing 8,000 hotels and achieving net unit growth of 7.8 percent,” said Christopher J. Nassetta, President & Chief Executive Officer of Hilton Worldwide ( HLT ).

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In the third quarter, Hilton Worldwide ( HLT ) opened 531 hotels, totaling 36,600 rooms, resulting in 33,600 net room additions. The company continued to expand its portfolio in the Asia Pacific market, surpassing 900 hotels in the region and opening its 700th hotel in China.

In the third quarter, the company added 27,500 rooms to its development pipeline, which now includes 3,525 hotels with a total of 492,400 rooms across 120 countries and territories. This includes 28 countries and territories where Hilton previously had no hotels.

Total cash and cash equivalents were $1.655 billion as of September 30, including $75 million of restricted cash and cash equivalents.

Hilton Worldwide ( HLT ) had $11.3 billion of debt outstanding, excluding the deduction for deferred financing costs and discounts, with a weighted average interest rate of 4.84%.

Outlook: Hilton Worldwide ( HLT ) lowers FY24 GAAP EPS outlook to $5.58 – $5.68 ($6.06 – $6.15 prior) versus the $6.15 estimate.

Hilton Worldwide ( HLT ) reiterates the FY24 adjusted EPS outlook of $6.93 – $7.03 versus $7.06 estimate.

Full-year system-wide comparable RevPAR, on a currency neutral basis, is projected to increase 2.0% – 2.5% (prior view 2.0% – 3.0%).

Hilton Worldwide ( HLT ) forecasts fourth-quarter adjusted EPS outlook of $1.57 – $1.67 versus $1.77 estimate, and GAAP EPS of $1.49 – $1.59 versus $1.65 estimate.

Net unit growth for 2025 is expected to be between 6% and 7%.

Price Action: HLT shares are trading lower by 4.25% to $228.00 premarket at last check Wednesday.

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