Mixed signals in the hospitality market as luxury outperforms but U.S. travel demand softens
Oct 23, 2025
Hilton Worldwide lowered its forecast for 2025 room revenue growth, reflecting weaker travel demand in the U.S. as consumers curb discretionary spending. While its luxury brands continue to perform strongly, the company expects broader normalization in the U.S. market only by late next year.
Key takeaways
- Weaker U.S. travel demand: Hilton’s U.S. RevPAR fell 2.3% in Q3 as consumer caution and tariff concerns weighed on spending.
- Luxury resilience: High-end brands such as LXR, Conrad, and Waldorf Astoria saw robust growth from affluent travelers, offsetting mid-scale and budget declines.
- Revenue beat expectations: Quarterly revenue reached $3.12 billion, surpassing analyst estimates of $3.01 billion, while adjusted EPS of $2.11 also exceeded forecasts.
- Adjusted outlook: Hilton now expects full-year RevPAR growth of up to 1%, down from its previous 2% forecast.
- Positive development outlook: The company raised its 2025 net unit growth forecast slightly to 6.5–7%, suggesting continued expansion despite softer demand.
- Investor confidence: Shares rose 2.7% in premarket trading following the results, reflecting optimism about Hilton’s long-term fundamentals.
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