Hilton Plans up to 3 New Brands Despite Trimming Growth Forecast

Hilton's latest results suggest travelers aren't hitting the brakes yet. The hotel giant maintained its optimistic outlook despite lingering economic uncertainties, particularly in the vital business travel segment.

Hilton forecasted "modest" growth this year because of economic uncertainty, yet still planned to pursue the development of as many as three new brands.

"We believe travelers are in a wait-and-see mode as the rapidly changing macro environment continues to unfold," said Christopher Nassetta, president and CEO on a Tuesday earnings call, citing "somewhat weaker" demand.

"Broader macro uncertainty intensified in March, which pressured demand, particularly across leisure," Nassetta said. "Weaker trends have continued into the second quarter," he said. "We're still seeing growth. Just a little less growth than what we would have expected coming into the year."

Nassetta said the uncertainty wasn't going delay the company's plans to expand its portfolio of brands. "We've got 24 brands," Nassetta said. "My guess is that, in the next year or two, we're going to have 27."

Despite the weakness, Nassetta painted a more optimistic picture than other CEOs, noting the potential for favorable economic policy - tax cuts and deregulation - later this year.

The hotel operator on Tuesday trimmed its outlook for the full year. Hilton projected revenue per available room (RevPAR) will fall somewhere between 0% and an increase of 2% year-over-year, down from an earlier forecast of between 2% and 3%.

Hilton's move was a rare departure from the industry's traditional pattern of beating and raising outlooks, said analysts at Bernstein Research in a flash report.

Hilton expects its second-quarter RevPAR to be "roughly flat" compared to the same period last year. The Easter calendar