Hospitality Sector Under Pressure Following Q3 Sales Miss From Hilton

On back of the lackluster prints and ahead of the remaining releases, the sector is experiencing investor pressure.

Hilton's Q3

• The company reported EPS of $0.23 on revenue of $2.94 billion for the third quarter. While EPS came in line with estimates, revenue fell shy by $0.06 billion.
• Expects adjusted EPS of $0.20–$0.23 for the fourth quarter, while analysts predict $0.24.
• Sees system-wide RevPAR to be flat to up 1.0 percent on comparable and currency neutral basis in the fourth quarter.
• For the year 2017, the company expects RevPAR to grow 1–3 percent.

Peers In The Space

Marriott Vacations Worldwide Corp VAC reported adjusted EPS of $0.96 on revenue of $406.99 million. The company narrowed its EPS forecast from $4.43–$4.78 to $4.55–$4.65 for the full year.

4 Peers Left To Report

The following four companies have yet to report:

• Choice Hotels International Inc CHH is scheduled to announce its results on Thursday. Analysts are looking for an EPS of $0.79 on revenue of $252.73 million.
• La Quinta Holdings Inc LQ is slated to disclose its results on November 2. Analysts expect EPS of $0.19 on revenues of $267.50 million.
• Hyatt Hotels Corporation H will announce its results on November 3. The Street is looking for an EPS of $0.29 on revenue of $1.11 billion.
• Marriott International Inc MAR is scheduled to release its results on November 7. Analysts expect EPS of $0.89 on revenue of $4.2 billion.

At Last Check ...

• Choice Hotels was down 1.23 percent at $44.30.
• Hilton was down 1.8 percent at $22.32.
• Hyatt was down 2.15 percent at $48.75.
• La Quinta was down 2.02 percent at $10.18.
• Marriott International was down 0.51 percent at $66.86.
• Marriott Vacations was down 2.37 percent at $62.73.
• Wyndham was down 5.38 percent at $64.18.