NEW YORK (TheStreet) -- Shares of Hilton Worldwide (HLT) - Get Report were declining in pre-market trading on Wednesday after reporting lower-than-expected revenue for the 2016 third quarter and cutting its full-year outlook for system-wide comparable revenue per available room (RevPAR).
Before the market open, the McLean, VA-based hotel operator reported revenue of $2.94 billion, missing analysts' estimates of $3.00 billion for the period.
Adjusted earnings of 23 cents per share were in line with analysts' estimates.
Hilton now expects RevPAR to increase between 1.5% and 2% in 2016, down from expectations of between 2% and 4% growth.
RevPAR is a performance metric used by the hotel industry, and is calculated by multiplying a hotel's average daily room rate by its occupancy rate.
For the 2016 third quarter, Hilton said system-wide RevPAR rose 1.3% year-over-year, while occupancy declined 0.2% and its average daily rate increased 1.5%.
Hilton also lowered its outlook for adjusted earnings to between 86 cents and 89 cents per share for the year from 87 cents to 91 cents per share.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Hilton's strengths such as its compelling growth in net income, revenue growth and reasonable valuation levels are countered by weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: HLT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.