Hilton Q2 adjusted EPS meets expectations on higher occupancy 

Overview

• Global hospitality firm's Q2 adjusted EPS met analyst expectations

• Q2 revenue rose to $3.34 bln; system-wide RevPAR up 3.9% yr/yr

• Company returned $966 mln to shareholders via share repurchases and dividends in Q2

Outlook

• Hilton projects full-year 2026 RevPAR to rise 3.0%-3.5% on a currency neutral basis

• Company expects full-year net income between $1,883 mln and $1,911 mln

• Hilton sees net unit growth of 6.0%-7.0% in 2026, with stronger growth in H2

Result Drivers

• REVPAR GROWTH - Q2 system-wide comparable RevPAR rose 3.9% yr/yr due to higher occupancy and average daily rates

• FEE REVENUE INCREASE - Management and franchise fee revenues rose 6.4% yr/yr, supported by higher RevPAR

• DEVELOPMENT PIPELINE - Net unit growth of 6.1% yr/yr, with 21,600 net room additions and a record pipeline of 541,300 rooms

Company press release: ID:nBw73ZD9Da

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Hilton Worldwide Holdings Inc is $353.00, about 6.7% above its July 27 closing price of $330.85

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 32 three months ago

Reuters Recommended Reads

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• July 27 - Welltower raises 2026 FFO forecast on senior housing demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)