Hilton Worldwide Holdings (NYSE:HLT) had a decent quarter. The market did not care. Shares fell nearly 5% in premarket trading Tuesday after the hotel giant reported mixed third-quarter results, with adjusted earnings topping estimates but revenue falling short.

Hilton reported adjusted earnings of $2.45 per share, beating the analyst consensus estimate of $2.36. Quarterly revenue rose 6.6% year over year to $3.325 billion, missing the consensus estimate of $3.369 billion. So the bottom line was fine, but the top line left something to be desired.

Record Organic Hotel Openings and Solid RevPAR

Systemwide comparable revenue per available room, or RevPAR, increased 5.8% year over year to $124.70 on a currency-neutral basis, driven by higher occupancy and average daily rates. Systemwide occupancy reached 75.8%, while the average daily rate stood at $164.57.

Hilton opened 182 hotels and added 23,000 net rooms during the third quarter, representing a 6.5% sequential increase and a 6% year-over-year increase. The company approved 30,500 new rooms for development during the quarter. As of Sept. 30, 2026, its development pipeline included 3,869 hotels representing 543,100 rooms, up 5% from a year earlier. Nearly half of the rooms in the pipeline were under construction, while more than half were located outside the United States.

Quarterly adjusted EBITDA rose to $1.058 billion from $976 million a year earlier. Net income increased to $536 million from $421 million in the year-ago quarter. During the quarter, Hilton appointed Jeff Moore executive vice president and chief technology officer.

Liquidity and Capital Returns

Hilton ended the quarter with $830 million in cash and cash equivalents, including $56 million in restricted cash and cash equivalents. As of Sept. 30, 2026, the company had $13.5 billion in outstanding debt and $1.9 billion available under its senior secured revolving credit facility.

Hilton returned $879 million to shareholders during the quarter, including $845 million in share repurchases and $34 million in dividends. The company declared a quarterly dividend of 15 cents per share, payable Dec. 29, 2026, to shareholders of record as of Dec. 1, 2026. Hilton expects to return approximately $3.5 billion to shareholders in 2026.

Outlook: Guidance Raise, EBITDA Cut, and Q4 Headwinds

Hilton raised its 2026 adjusted earnings guidance to $9.07 to $9.13 per share from its previous range of $8.89 to $9.01, compared with the analyst consensus estimate of $9.05. The company also raised its 2026 GAAP earnings outlook to $8.38 to $8.44 per share from $8.22 to $8.35, compared with the analyst estimate of $8.54.

Hilton expects full-year systemwide comparable RevPAR to increase 4% to 4.5% on a currency-neutral basis from 2025.

The company said third-quarter performance benefited from the World Cup and favorable calendar and holiday shifts. However, it expects fourth-quarter results to face headwinds from the U.S. midterm elections and increased impacts from the Middle East.

Hilton lowered its full-year adjusted EBITDA guidance to $4.06 billion to $4.08 billion, citing weaker expectations for performance in the Middle East and lower timeshare license fees.

For the fourth quarter, Hilton expects adjusted earnings of $2.32 to $2.38 per share, compared with the analyst estimate of $2.38. The company projects fourth-quarter GAAP earnings of $2.25 to $2.31 per share, compared with the consensus estimate of $2.29. Hilton also expects fourth-quarter RevPAR growth of 3% to 3.5%.

President and CEO Christopher J. Nassetta said the company's third-quarter performance exceeded expectations and that he expects the momentum to continue through the remainder of 2026 and into 2027. Nassetta expressed confidence in achieving full-year net unit growth near the midpoint of Hilton's 6% to 7% guidance range, supported by continued hotel openings.

HLT Price Action: Hilton Worldwide Holdings shares fell 4.68% to $335.40 in premarket trading Tuesday, according to market data.