Hilton Reports Decline in Profitability and Adjusts Forecasts

Photo: Travel Daily News

Hilton’s system-wide revenue per available room (RevPAR) declined by 1.1% year-on-year, and by 2.3% in the United States, reports Hotel Dive. Corporate travel profitability fell by about 1%, while group bookings dropped by 4%. Earlier, the company had expected a full-year growth of up to 2%, but amid economic uncertainty, the forecast has been revised to a range of 0–1%.

The decline in RevPAR reflects a temporary slowdown in business and international demand, as well as reduced travel spending in the U.S. public sector. Hilton CEO Christopher Nassetta cited the impact of tariff disputes and geopolitical factors but emphasized that the fundamentals for growth remain stable. He noted that lower interest rates, predictable tax policy, and an improved regulatory environment create conditions for recovery.

Financial Performance

Hilton’s net profit reached $421 million, with diluted earnings per share of $1.78 and adjusted EPS of $2.11. EBITDA totaled $976 million. During the third quarter, the company added 24,800 rooms to its portfolio, expanding capacity by 6.5% year-on-year. The development pipeline hit a record 515,400 rooms, up 5% compared to last year. In October, Hilton opened its 9,000th property — the Signia by Hilton La Cantera Resort and Spa — marking a milestone in the company’s expansion in luxury hospitality.

Conversions remain one of Hilton’s key growth drivers — integrating independent hotels into its brand portfolio allows rapid expansion without major construction costs. Recent additions include properties under the Signia brand in Texas Hill Country and the Sunseeker Resort Charlotte Harbor in Florida.

Shortly after the quarter ended, the company unveiled a new brand, Outset Collection by Hilton, targeting the upper midscale and luxury segments. It is designed for independent hotels seeking to retain their individuality while adopting global standards. This market tier offers significant potential and strengthens Hilton’s position in the lifestyle segment.

Other Brands

Other major hotel groups are pursuing similar strategies. Marriott International and Wyndham Hotels & Resorts are also expanding their collection brands, intensifying competition in the upper midscale and luxury categories. One of Wyndham’s major projects is located in Georgia. The Wyndham Grand Batumi Gonio complex combines hotels, residences, villas, and club spaces. Its Ultra All Inclusive concept emphasizes natural comfort, personalized service, and thoughtful infrastructure. Aquatic zones, spa and wellness centers, signature cuisine, and separate relaxation areas embody the modern interpretation of luxury resorts.

According to International Investment, Georgia is becoming one of the most attractive destinations for global hotel operators. The country offers a low investment entry threshold, high returns, and a growing international visitor flow. Alongside Wyndham, brands such as Hilton, Accor, Marriott, and Hyatt are also expanding their presence. These projects are reshaping the country’s image, establishing Georgia as a new luxury hospitality hub in Eastern Europe and on the Black Sea.

Georgia’s hotel market is gradually shifting from independent operations to management under international chains. This transition is driven by a shortage of luxury-class properties under global brands, high conversion rates thanks to brand recognition, and a well-developed development base along the coast and in business centers. As a result, service standards are rising, and the country’s international reputation is strengthening.

Development Trends

Analysts note that the global hospitality industry has entered a phase of “wealth bifurcation” — a division of demand by income level. Luxury segments remain resilient, while the mass market faces fluctuations in occupancy. For Hilton and Wyndham, this means a stronger focus on luxury and lifestyle brands, where long-term growth potential is concentrated and the new structure of the global hotel market is taking shape.