Skift Take
As we reach (or surpass) peak cycle, it seems like everyone is a bit of a hypochondriac these days when it comes to the health of the hotel industry.
Hilton reported strong fourth quarter and full-year earnings for 2018 on Wednesday morning — so much so that shares rose 6 percent to their highest level since last October.
Most tellingly, systemwide revenue per available room (RevPAR) grew 3 percent in 2018, with group business RevPAR up 4 percent and corporate transient RevPAR up 2.6 percent. Leisure transient RevPAR was also up 2.6 percent, but was lower than expected.
Hilton's adjusted earnings per share for the fourth quarter of 79 cents also beat the 69 cents consensus.
In different investors notes, Jeffries equity analyst David Katz described Hilton's earnings results as "healthy" and R.W. Baird senior research analyst Michael Bellisario wrote Hilton's fourth quarter results "easily topped expectations and guidance."
Nevertheless, the lines of questioning from analysts during Wednesday's earnings call reflected an ever-present concern shared by analysts and shareholders alike about whether the record-breaking 10-year cycle of profits in hospitality is finally coming to an end.
Despite Hilton CEO Chris Nassetta's confidence in Hilton's business model — the strength of its net unit growth, expansion in China, a grow
