In the third quarter, business transient revenue per available room grew 2% year-over-year, and Hilton expects similar growth through 2025
Oct 24, 2024
Hilton’s total revenue per available room (RevPAR) increased 1.4 percent year-over-year in the third quarter, falling short of the company’s previous guidance of a 2 to 3 percent increase. CEO Christopher Nassetta attributed the shortfall to several factors, including a slower recovery in September after Labor Day, adverse weather conditions, unfavorable calendar shifts and ongoing labor disputes in the United States.
Key takeaways
- Group RevPAR for the third quarter was up 5 percent year-over-year, driven by a significant increase in demand. Nassetta noted, “We’re seeing really great demand” for corporate meetings;
- Demand for transient business travel has increased among Hilton’s large corporate customers as well as small and midsize businesses. Noting that the economy “remains strong, resilient and showing positive growth,” Nassetta predicts that business transient demand in 2025 will exceed 2019 levels;
- He anticipates a year-over-year increase in business transient demand in 2025 in the “low single digits, but higher than one,” with this year’s increase expected to be between 2 percent and 2.5 percent.
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