Hilton raises full-year RevPAR outlook

MCLEAN, Virginia — Hilton reported a RevPAR increase of 3.6% year-over-year and upped its full-year 2026 RevPAR expectations to an increase of 2-3% (up from its initial projections of 1-2%) as part of its first quarter 2026 results.

Hilton also said it added 26,200 new rooms to its development pipeline during the first quarter, bringing its total pipeline to a record 527,000 rooms, representing 6.3% net unit growth YOY.

“We delivered great top and bottom-line results for the quarter with RevPAR growth across all chain-scales and brands and customer segments. The results demonstrate a continuation of strengthening demand trends we’ve seen since late 2025 that are supported by macroeconomic tailwinds most evident in the U.S.,” said Hilton President and CEO Chris Nassetta. “On the development side, we achieved the largest pipeline in our history, and we remain confident in our ability to deliver net unit growth of 6-7% in 2026 and beyond.”

Analyst Michael Bellisario of R.W. Baird said Hilton’s softer expectations for the second quarter, largely driven by declining performance in the Middle East, meant that higher investor expectations headed into the earnings could come up short.

“No change in our fundamental outlook – passing through the 1Q26 beat plus softer 2Q26 earnings guidance likely fall short of lofty buy-side expectations,” he said.  “First quarter RevPAR was strong at 3.6%, but earnings only were slightly ahead of consensus (and likely below buy-side expectations, in our view). Higher full-year guidance reflects the pass-through of the 1Q26 beat, but 2Q26 earnings guidance was well below Baird/Street forecasts.”

Analyst Patrick Scholes of Truist Securities said he considers Hilton’s guidance to be relatively cautious and said his company continues to “take the over” on Hilton’s RevPAR growth prospects for the rest of 2026.

“Today’s geopolitical landscape and the potential drag it creates on the macroeconomic environment have tempered numerous industry forecasts thus far in 2026, and we view today’s guidance from Hilton as no exception,” he said.  “The good news, and as we have been saying since the start of the year, is that our analysis of forward-looking booking data and conversations with both our hotel owner/manager contacts and very large travel agency executives indicate RevPAR growth for U.S. hotels is tracking meaningfully ahead of current industry expectations.”

Hilton said it’s projecting RevPAR growth of 2-3% for the second quarter, but those YOY growth numbers could be impacted by one-time fees and favorable timing items specific to the second quarter of 2025, as well as the outsized impact of anticipated lower Middle East RevPAR.