New York - Hilton Worldwide Holdings, owner of the Waldorf Astoria hotel brand, forecast lower-than-expected earnings for the first quarter as a strong dollar makes it more expensive for foreigners to travel to the United States.
Hilton expects “recent sharp movements” of the dollar against the euro, Australian dollar and yen to hurt adjusted earnings before interest, tax, depreciation and amortisation by $35 million-$45 million, CFO Kevin Jacobs said.
Hilton and rival Marriott International Inc reported a rise in fourth-quarter RevPAR, a key metric for the hotel industry.
Marriott's international systemwide RevPAR rose just 0.5 percent. On a constant currency basis, however, international RevPAR rose 4.6 percent.
Starwood Hotels & Resorts Worldwide, owner of the Sheraton and Westin brands, forecast a profit below market estimates last week, citing the strengthening of dollar that lowers revenue from outside the United States.