(Reuters) -Hilton Worldwide Holdings Inc raised its full-year adjusted profit forecast on Wednesday as the U.S. hotel operator bets on pent-up travel demand to offset any inflation-driven spending declines.
The hotel industry has benefited from price hikes and a rebound in travel demand after COVID lockdowns, with consumers booking longer stays despite rising interest rates and tight financial conditions that have stoked fears of a looming recession.
The steady travel demand has, however, pushed hotels to shell out more money on hiring staff in a tight labor market.
Hilton’s total expenses in the first quarter rose about 33% to $1.8 billion.
The company, which owns brands including Waldorf Astoria Hotels & Resorts, expects full-year adjusted profit per share between $5.68 and $5.88, compared with a prior forecast of $5.42 to $5.68.
The company also raised its annual forecast for revenue-per-available-room (RevPAR) – a key metric for investors – to between 8% and 11%, compared with a prior forecast of 4% to 8%.
(Reporting by Priyamvada C in Bengaluru; Editing by Devika Syamnath)
