Hilton earns $2.45 per share and lifts quarterly revenue to $3.325 billion
Key Facts
Hilton reported quarterly results on October 27, with adjusted diluted earnings of $2.45 per share, above the analyst consensus estimate of $2.35, while revenue came in at $3.325 billion, below the $3.36 billion estimate. Chief Executive Christopher Nassetta said the company delivered "strong results on both the top and bottom lines that exceeded our expectations." He added that the results were underpinned by momentum across the Hilton system, which the company expects to continue through year-end and into 2027. The company held an investor call at 9 a.m. Eastern Time on the day it announced results. Its stock fell 2.68% in premarket trading, before rising 0.65% in after-hours trading on October 27.
Net income was $536 million in the third quarter, compared with $421 million in the same period of 2025, while adjusted EBITDA rose to $1.058 billion from $976 million. Adjusted diluted earnings per share were $2.45, compared with $2.11 a year earlier, while unadjusted diluted earnings per share were $2.37. Total revenue increased to $3.325 billion from $3.120 billion in the third quarter of 2025. The comparison shows year-over-year increases in revenue, operating earnings and net income, alongside adjusted earnings that beat estimates and revenue that fell short of analysts' expectations. The results presented a mixed picture, with growth in annual indicators and a revenue gap against the estimate ahead of the announcement.
For comparable hotel performance, the system-wide comparable revenue per available room index rose 5.8% in the third quarter from the corresponding period of 2025. Occupancy increased 1.4 percentage points to 75.8%, while average daily rate rose 3.9% to $164.57. In the United States, the index grew 7.0%, and it rose 6.5% in Europe, while declining 5.6% in the Middle East and Africa and 0.5% in Asia-Pacific. In the first nine months of 2026, system-wide index growth was 4.7% from the same period of 2025, alongside increases in occupancy and average daily rate. Management and franchise fee revenue also rose 9.5% in the third quarter and 8.7% in the first nine months, compared with the corresponding periods a year earlier.
Hilton opened 182 hotels with 27,000 rooms during the quarter and added 23,000 net rooms to its system. Its development pipeline stood at 543,100 rooms across 3,869 hotels in 135 countries and territories on September 30. About half of the rooms in the pipeline were under construction, while more than half were outside the United States. These figures reflect network expansion alongside growth in room revenue at existing hotels, but describe two different tracks: capacity additions and comparable performance at operating properties. During the quarter, the company returned $879 million to shareholders through share repurchases and distributions, and total capital returns since the start of the year through October reached $2.902 billion.
Hilton maintained its 2026 forecast for system-wide comparable room revenue growth at 4.0% to 4.5%, and estimated fourth-quarter growth of 3.0% to 3.5% from the corresponding period of 2025. It said the third quarter benefited from the World Cup and favorable calendar and holiday shifts, while the fourth quarter is expected to be affected by the midterm elections and a larger impact from the Middle East. The company forecast adjusted diluted earnings of $2.32 to $2.38 per share in the fourth quarter, net income of $508 million to $522 million, and adjusted EBITDA of $1.047 billion to $1.067 billion. For 2026, it set a range of $4.060 billion to $4.080 billion for adjusted EBITDA, saying the estimate includes lower expectations for Middle East performance and timeshare licensing fees compared with its previous guidance. Hilton will begin trading on Nasdaq under the ticker HLT at the market open on November 5, while the stock will continue trading on the New York Stock Exchange through the close on November 4, with no action required from shareholders.