Hilton Worldwide Holdings reported a 6.6% increase in total revenue to $3.33 billion for the third quarter ended September 30, 2026, but fell short of the $3.37 billion analysts had expected. Adjusted earnings per share rose to $2.45, exceeding both last year’s $2.11 and the forecast of $2.36. Following the earnings release, Hilton shares declined by 5%.
Regional Revenue Performance in Q3 2026
The company’s room revenue in the Middle East and Africa region declined 5.6% year-over-year during Q3 2026. In contrast, room revenue in the United States grew by 7% for the same period. Despite the downturn, Hilton signed over 20 new hotels in the
Middle East and Africa in the third quarter, signaling continued commitment to the region.
Middle East Market Impact and Executive Commentary
Hilton CEO Christopher Nassetta acknowledged the challenges the Middle East market posed on the company’s revenue in the quarter, stating on the post-earnings call, “Middle East is a little more beaten up than we thought.” This market weakness is attributed in part to the escalating US-Iran conflict, which has increased uncertainty for hotel operators and delayed projects. Marriott CEO Anthony Capuano also noted easing declines for the Middle East hotel market in July 2026 despite conflict-related delays.
Forecast for Fiscal 2026 Growth
Hilton adjusted its forecast for revenue per available room
(RevPAR) growth for fiscal 2026 to a range of 4% to 4.5%, up from the prior estimate of 3% to 3.5%. The company also projects net unit growth of 6% to 7% in 2026, with a particular emphasis on increased room additions expected in the fourth quarter. Luxury properties showed strong RevPAR gains in Q3, with Waldorf Astoria and LXR brands rising 13.9% and 14.3% respectively.
Geopolitical Factors Affecting Performance
The escalation of the US-Iran conflict during Q3 2026 contributed to operational challenges in the Middle East, increasing uncertainty for Hilton and other hospitality entities. These geopolitical tensions, combined with upcoming US midterm elections,
are anticipated to influence performance in the fourth quarter. Nonetheless, Hilton noted that leisure and business travel demand remained resilient throughout Q3, supporting spending across multiple hotel segments despite the regional difficulties.
