Hilton shares declined 5.4% post-earnings as investors reacted to a cut in full-year RevPAR growth guidance and a more cautious outlook amid macroeconomic uncertainty and Middle East headwinds.

• Hilton lowered its full-year System-wide RevPAR growth expectations to 2%–3%, reflecting potential impacts from the Middle East conflict and broader economic uncertainties.
• First quarter System-wide RevPAR increased 3.6% year-over-year, with group demand up 4.3%, business transient up 2.7%, and leisure transient up 3.5%.
• Net unit growth remained strong; Hilton opened 131 hotels and over 16,000 rooms in Q1—its second strongest first quarter for openings.
• The global development pipeline hit a record 527,000 rooms, with new construction starts expected to be up over 20% for the year, driven by the U.S. and EMEA.
• Management reiterated a 6%–7% net unit growth target for the year but acknowledged a range of geopolitical and macro headwinds impacting the demand outlook.