Hilton Earnings: Strong Demand and Profitability Expected to Continue in 2023 Despite Macro Pressure

Demand for Hilton's brands remained resilient in the first three months of 2023, with revenue per available room, or revPAR, coming in at 101% of 2019's level (108% in constant currency). This result was slightly above our 100% prognosis and the prior quarter's 100%. We expect strong demand to hold through 2023. That said, year-over-year comparisons get difficult the rest of 2023, and we remain vigilant around macro risks (higher inflation, softening labor markets, tightening credit availability) that could place pressure on travel demand. Still, Hilton has not seen any signs of weakening demand, and, in fact, raised its 2023 constant currency revPAR growth guidance to 8%-11% from 4%-8% prior. We don't expect to make much change to our $150 per share fair value estimate and view shares as fairly valued.