(Reuters) -Hotel operator Hilton Worldwide raised its annual adjusted profit forecast on Wednesday, banking on international travel demand to offset normalizing domestic travel in the U.S.
International travel demand is expected to remain strong this year as global air connectivity increases and travelers flock to Asian and Latin American countries, while demand for domestic travel plateaus in North America.
The company forecast 2024 adjusted profit of between $6.89 and $7.03 per share, up from the previously forecast $6.80 to $6.94 per share.
Hilton, which also owns brands such as Waldorf Astoria Hotels & Resorts, reported quarterly revenue per available room (RevPAR) of $104.16, up 2% from the same period last year.
“US RevPAR turned negative but Americas and Middle East & Africa accelerated … implying global travel demand still robust,” Richard Clarke, analyst at Bernstein, wrote in a note.
Hilton’s shares were up 2.5% in light premarket trade.
The hotel operator reported an adjusted profit of $1.53 per share for the first quarter, compared to analysts’ average estimate of $1.42 per share, according to LSEG data.
Total quarterly revenue was $2.57 billion. Analysts were expecting revenue of $2.53 billion.