(Reuters) -Hilton Worldwide lifted its forecast for 2025 profit on expectations of a complete recovery in domestic travel demand in the U.S. after a sharp pullback in March and April.
Domestic travel suffered a setback earlier this year after U.S. President Donald Trump’s aggressive tariff announcements triggered fears of an economic recession that led consumers to rein in discretionary expenses.
Some travel companies recently flagged that travel demand in the U.S. has steadied, but international tourists from Canada and Europe have cut down U.S. visits following Trump’s new trade policy.
Earlier this month, U.S. legacy carrier Delta Airlines said that while bookings had stabilized, they were at a lower level than the airline had estimated at the start of the year.
United Airlines CEO Scott Kirby has made similar remarks, saying that despite demand leveling off, the carrier finished the first half about five percentage points weaker than its original estimate.
A slower-than-expected recovery in travel demand also impacted Hilton’s second-quarter room revenue in the U.S., which fell 1.5% compared to a year earlier.
Shares of the company were down about 2% in premarket trading.
But the company remains hopeful. “We believe the (U.S.) economy… is set up for better growth over the intermediate term, which should accelerate travel demand,” said Hilton CEO Christopher Nassetta.
The McLean, Virginia-based company now expects full-year adjusted profit to be in the range of $7.83 and $8 per share, compared with its earlier forecast of $7.76 to $7.94.
The Waldorf Astoria-parent posted an adjusted profit of $2.20 per share in the second quarter, beating Wall Street estimates of $2.04, according to data compiled by LSEG.
Total revenue for the quarter ended June 30 was $3.14 billion, up 6.3% from a year earlier. Analysts, on average, had expected revenue of $3.10 billion.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Shinjini Ganguli)
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