Hilton forecasts downbeat room revenue growth on budget travel weakness

Feb 11 (Reuters) - Hilton Worldwide Holdings HLT.N on Wednesday forecast 2026 RevPAR growth below Wall Street expectations, citing a slowdown in spending by budget-conscious travelers, even as strong demand for premium travel helped it beat fourth-quarter profit estimates.

With a tougher economic backdrop pushing budget-conscious travelers to cut back, hotels are seeing demand soften in their budget and midscale offerings.

Affluent guests continue spending on premium experiences, with higher margins from luxury properties offsetting weakness elsewhere.

Fourth-quarter revenue per available room, a key lodging metric that tracks average daily rate and occupancy, at its midscale and budget properties fell, while it posted strong growth at its luxury hotels, which include Waldorf Astoria and Conrad.

The McLean, Virginia-based company expects its full-year room revenue growth of 1% to 2%, compared with analysts' estimates of 2.05%, according to data compiled by LSEG.

Global tourism rose 6.7% in 2025, but the U.S. saw a 6% drop in foreign visitors, likely reflecting concerns such as tougher immigration policies, according to the data from the World Travel and Tourism Council.

Earlier this month, the U.S. Travel Association said hotel room demand fell in December by 0.1% year-over-year, and inbound overseas travel was down 1.3% year-over-year. "Interest in travel remains strong even amid broader economic uncertainty," the industry group said.

International tourism to the country could get a boost from the upcoming FIFA World Cup . Earlier this week, peer Marriott also hinted at growth in its global RevPAR from the World Cup.

The DoubleTree-parent posted an adjusted profit of $2.08 per share in the fourth quarter, up from $1.76 per share a year ago. Analysts on average expected $2.02 per share.

Total revenue for the quarter ended December 31 was $3.09 billion, up from $2.78 billion a year earlier. Analysts on average estimated $2.99 billion.