Shares of Hilton Worldwide Holdings Inc. fell 0.8% on Wednesday, after the hotel operator’s 2024 forecast fell short of estimates and overshadowed its fourth-quarter profit beat.
The HLT company,
reported net income of $148 million, or 57 cents per share, for the quarter, down from $328 million, or $1.21 per share, in the same period a year earlier. Adjusted earnings per share were $1.68, above the FactSet consensus of $1.57.
Revenue rose to $2.609 billion from $2.444 billion a year ago, matching the FactSet consensus.
System-wide revenue per available room increased 5.7% on a currency-neutral basis and 13.5% compared to the same period in 2019, before the onset of the COVID-19 pandemic.
“The positive momentum in openings continued throughout the year, with more openings in the fourth quarter than in any other quarter in the company’s history,” CEO Christopher J. Nassetta said in a statement.
Hilton now expects system-wide RevPAR to rise 2% to 4% through 2024 on a currency-neutral basis. EPS is expected to range from $6.57 to $6.71 and adjusted EPS is expected to range from $6.80 to $6.94. The FactSet consensus expects EPS of $7.05.
For the first quarter, adjusted EPS is expected to be between $1.36 and $1.44, while FactSet expects $1.42.
The company also announced a new partnership with Small Luxury Hotels of the World, a group of 560 luxury boutique hotels in 90 countries. Under the terms of their agreement, Hilton guests will be able to book, earn and redeem points for stays at those hotels.
“These locations are highly complementary to Hilton’s extensive hotel network and will give guests access to additional luxury accommodations in hundreds of new destinations,” the company said in a separate statement.
The stock has gained 31.3% in the last 12 months, while the S&P 500 index SPX,
it gained 19%.