Hilton Worldwide's third-quarter systemwide business transient revenue per available room grew 8.3 percent year over year, the company reported Tuesday.
According to CEO Christopher Nassetta, business transient performance was bolstered by better-than-expected demand in the U.S. with ongoing strength in manufacturing, technology and workforce lodging. Those segments "grew more than 10 percent" year over year, Nassetta said during the company's earnings call.
Hilton raised its full-year RevPAR growth outlook to 4 percent to 4.5 percent, up from the 3 percent to 3.5 percent projection shared in July.
Nassetta said the change reflected business transient momentum heading into the fourth quarter, "particularly in the U.S. where supportive policy, increased private sector investment, including AI and ongoing public infrastructure spending, are supporting demand."
He also emphasized Hilton's strength among small and midsize businesses, a segment that buoyed Hilton's Q2 results.
Third-quarter group RevPAR increased 8.2 percent year over year, which Nassetta attributed to "sequentially stronger demand from the second quarter, continued rate gains and favorable demand from social events and company meetings."
Though Hilton didn't provide an official systemwide RevPAR outlook for full-year 2027, Nassetta said the company is targeting year-over-year RevPAR growth of 3 percent to 4 percent.
Hilton Q3 Metrics
Hilton’s third-quarter systemwide revenue per available room increased 5.8 percent year over year to $124.70. Average daily rate increased 3.9 percent to $164.57, while occupancy rose 1.4 percentage points to 75.8 percent.
In the United States, RevPAR grew 7 percent year over year to $135.53, driven by a 4.1 percent rise in ADR to $176.71 and a 2.1 percentage-point rise in occupancy to 76.7 percent.
Systemwide third-quarter total revenue increased 6.6 percent year over year to $3.3 billion. Total net income grew 27 percent to $536 million.
Hilton’s development pipeline as of Sept. 30 included about 543,100 rooms, up 5 percent year over year. Net unit growth was about 6 percent.
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