(Reuters) – Hilton Worldwide Holdings Inc raised full-year adjusted profit forecast on Wednesday, as the U.S. hotel operator expects pent-up travel demand to bolster its earnings.
In the last few quarters, the hotel industry has benefited from price hikes and travel demand as flexible work arrangements and easing of pandemic-related restrictions prompted consumers to book longer stays.
Hilton, which owns brands including Waldorf Astoria Hotels & Resorts, said its second-quarter RevPAR (revenue per available room), a key metric for investors, rose 12% from a year earlier.
However, the sector, which has largely evaded the effects of high inflation so far, struggles with high wage costs in a tight labor market as they deploy more staff to meet the spike in demand.
The company said it now expects full-year adjusted profit of $5.93 and $6.06 per share, compared with its prior forecast of $5.68 and $5.88 per share.
(Reporting by Priyamvada C in Bengaluru; Editing by Krishna Chandra Eluri)
