Hilton Worldwide Holdings Inc. (HLT) shares plummeted 5.22% in intraday trading Tuesday, deepening pre-market declines, after the hotel operator’s third-quarter earnings outlook disappointed investors despite second-quarter results that matched expectations.

The company reported adjusted earnings per share of $2.29 for the second quarter, in line with analyst forecasts, while revenue of $3.34 billion edged past estimates. Hilton also lifted its full-year adjusted EPS guidance to $8.89–$9.01. However, its projection for third-quarter adjusted EPS of $2.28–$2.34 came in below Wall Street consensus, triggering the sell-off.

Adding to the negative tone, Hilton’s CFO noted that revenue per available room in China fell 2.2% during the quarter, pressured by a decline in group travel amid continued government restrictions. While management struck an optimistic note on U.S. demand, the soft Q3 guidance and China weakness overshadowed the otherwise solid quarterly performance.