Business travel will fully recover 'by the end of the year,' says Hilton CFO

Business travel will fully recover ‘by the end of the year,’ says Hilton CFO

Hilton Worldwide (HLT) is seeing tailwinds heading into the summer as consumers spend more on leisure travel amid a waning pandemic.

“We think this summer is going to be — after setting records in our business for travel demand and revenue last summer, we think this summer is going to be another kind of all-time record,” said Hilton Worldwide CFO Kevin Jacobs at Yahoo Finance Live. .

Signage is seen on a Hilton hotel as travel resumes in Manhattan, New York, U.S., March 23, 2022. REUTERS/Andrew Kelly

“We are very pleased with the growing demand for travel across all of our segments. This has largely been a leisure-driven recovery throughout the pandemic. And the demand for recreation remains quite strong,” Jacobs said.

The executive of the hotel chain estimates that business travel should return to pre-pandemic levels “by the end of the year”.

“This segment is growing,” Jacobs said. “We largely think, when all is said and done, that our mix might be slightly higher for leisure than for business, but it will look a lot like what it looked like before the pandemic.”

Hilton on Tuesday released quarterly results that fell short of consensus revenue estimates but beat expectations for adjusted earnings per share. Hilton’s full-year earnings forecast is below average high street expectations.

The company declared a quarterly cash dividend of $0.15 per share and resumed share buybacks in March.

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