Hilton Worldwide Holdings Inc reported net income of $536 million for Q3 2026, up from $421 million in Q3 2025, with diluted earnings per share rising to $2.37 from $1.78. Adjusted earnings per share reached $2.45 compared to $2.11 the prior year, while adjusted EBITDA increased to $1.06 billion from $976 million, surpassing analyst expectations.
Middle East Region Revenue Decline Affects Overall Performance
Despite strong profit growth, Hilton’s total revenue fell short of forecasts, mainly due to a 5.6% year-over-year drop in room revenue in the Middle East and Africa region. CEO Christopher Nassetta attributed this to geopolitical tensions, including the ongoing Middle East conflict and unsettled conditions
around the US midterm elections. He stated that the Middle East market was “a little more beaten up than we thought,” impacting revenues despite resilient global travel demand.
RevPAR Growth and Development Drive Performance
System-wide comparable revenue per available room (RevPAR) grew 5.8% on a currency-neutral basis in Q3 2026, driven by higher average daily room rates and improved occupancy. Hilton’s luxury brands, Waldorf Astoria and LXR, posted RevPAR increases of 13.9% and 14.3%, respectively. The company opened 182 hotels adding 27,000 rooms during the quarter, with net growth of 23,000 rooms. Hilton’s development pipeline expanded 5% year-over-year to 543,100 rooms in 3,869 hotels across 135
countries and territories.
Raised Full-Year Earnings and Shareholder Returns Forecast
Following the third-quarter results, Hilton raised its full-year 2026 adjusted earnings per share guidance to a range of $9.07 to $9.13. The company projects adjusted EBITDA between $4.06 billion and $4.08 billion and comparable RevPAR growth of 4% to 4.5% for the full year. Net income is forecasted between $1.91 billion and $1.92 billion. Hilton plans to return approximately $3.5 billion to shareholders through dividends and share repurchases in 2026, including 2.6 million shares bought back for $845 million in Q3.
Geopolitical and Market Challenges Impact Sector
Hilton’s Q3 results occurred amid escalating uncertainty caused by the US-Iran conflict and political unrest tied
to US midterm elections. These conditions contributed to operational challenges in the Middle East, pressuring revenue despite steady demand in leisure and business travel worldwide. Competitors such as Marriott have also reported delays and revenue declines in the region.
CEO Christopher Nassetta described Hilton’s results as “stronger-than-expected,” highlighting the company’s highest quarterly total of organic hotel openings. He projected continued momentum in growth through 2027 despite current market headwinds.
