(Reuters) -Hotel operator Hilton Worldwide cut forecast for 2025 room revenue growth at a time when U.S. President Donald Trump’s sweeping tariffs and resulting global trade war have sparked fears of an economic recession.
American consumers are growing cautious about discretionary spending, including travel.
U.S. consumer sentiment shrank for the fourth month in a row in April, while inflation expectations were at their highest since 1981.
The McLean, Virginia-based company now expects full-year revenue per available room (RevPAR), a key metric in the hospitality industry, to be flat to up 2%, compared to 2% to 3% previously.
The McLean, Virginia-based company now expects full-year net income to be in the range of $1.71 billion and $1.75 billion, compared to $1.83 billion to $1.86 billion previously.
Earlier this month, legacy US carriers Delta Air Lines, Southwest, and American pulled their financial forecast for 2025. Delta added that travel demand has “largely stalled” due to the economic uncertainty fueled by tariffs.
Furthermore, international tourists from Canada and Europe have pulled back U.S. visits following Trump’s new trade policy.
Hilton’s total revenue for first quarter ended March 31 came in at $2.70 billion, up 4.7% from a year earlier.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Leroy Leo)
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