Shares in Hilton Worldwide Holdings Inc (NYSE:HLT) travelled north on Wednesday as the multinational hotel group raised its full-year profit forecast amid a rebound in the sector.
The Virginia-based company said it expects to post net income of between US$1.15 billion and US$1.22 billion this year, compared to previous guidance of between US$1 billion and US$1.07 billion.
In its second quarter to end-June 2022, Hilton reported revenue of US$2.24 billion compared to average analysts' expectations of US$2.08 billion. On an adjusted basis, it earned US$1.29 per share, which was better than the expected US$1.04 from analysts.
In recent months, the industry has benefited from people spending on travel and hotel stays, though rising interest rate and economic headwinds are increasing fears of recession.
Hilton also revealed it expects a key metric in the industry - its full-year system-wide comparable revenue per available room or RevPAR - to increase between 37% and 43% compared to a year earlier.
Shares in New York gained over 4% to stand at US$125.81 each.
Contact the author at giles@proactiveinvestors.com