Hilton Worldwide Holdings Inc., in the process of turning itself into three separate entities, cut its profit forecast for the year as a key indicator of pricing power grew less than expected in the latest period.
Shares fell 2.6% to $22.13 in morning trading.
Hilton Chief Executive Christopher Nassetta said the company faced “a macroeconomic environment that continues to underperform expectations.”
System wide revenue per available room—also known as RevPar, a key industry gauge of pricing power—rose to a currency-neutral 1.3%. The company expected RevPAR to increase between 2% and 4%.
Also on Wednesday, Wyndham Worldwide Corp. reported less-than-expected sales and RevPar increased 1.4%, which it said reflected “decelerating industry RevPar trends.” Shares of Wyndham fell 4.3% in recent trading.
Hilton now sees full-year earnings in a range of 86 cents to 89 cents a share, on an adjusted basis, afterRead More »from [$$] Hilton Cuts 2016 Forecast, Says Spinoffs on Track for Year’s End