Hilton Worldwide Holdings Inc. ("Hilton," "the Company," "we,"
"us" or "our") (NYSE: HLT) today reported its first quarter 2025
results. Highlights include:
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- Diluted EPS was $1.23 for the first quarter, and diluted
EPS, adjusted for special items, was $1.72
- Net income was $300 million for the first quarter
- Adjusted EBITDA was $795 million for the first
quarter
- System-wide comparable RevPAR increased 2.5 percent, on a
currency neutral basis, for the first quarter compared to the same
period in 2024
- Approved 32,600 new rooms for development during the first
quarter, bringing our development pipeline to 503,400 rooms as of
March 31, 2025, representing growth of 7 percent from March 31,
2024
- Added 20,100 rooms to our system, resulting in 14,000 net
additional rooms for the first quarter, contributing to net unit
growth of 7.2 percent from March 31, 2024
- Repurchased 3.7 million shares of Hilton common stock during
the first quarter; bringing total capital return, including
dividends, to $927 million for the quarter and $1,157 million year
to date through April
- Full year 2025 system-wide RevPAR is projected to be flat to
an increase of 2.0 percent on a comparable and currency neutral
basis compared to 2024; full year net income is projected to be
between $1,707 million and $1,749 million; full year Adjusted
EBITDA is projected to be between $3,650 million and $3,710
million
- Full year 2025 capital return is projected to be
approximately $3.3 billion
Overview
Christopher J. Nassetta, President & Chief Executive Officer
of Hilton, said, "We are pleased with our first quarter results,
with strong bottom line performance, even with somewhat weaker
macroeconomic conditions. Additionally, we expect our
industry-leading brands and powerful commercial engines to continue
to drive strong net unit growth. Overall, we remain optimistic
about our growth opportunities and are well positioned to continue
creating value for our stakeholders in 2025 and beyond."
For the three months ended March 31, 2025, system-wide
comparable RevPAR increased 2.5 percent compared to the same period
in 2024 due to increases in both occupancy and ADR. Management and
franchise fee revenues increased 5.1 percent compared to the same
period in 2024.
For the three months ended March 31, 2025, diluted EPS was $1.23
and diluted EPS, adjusted for special items, was $1.72, compared to
$1.04 and $1.53, respectively, for the three months ended March 31,
2024. Net income and Adjusted EBITDA were $300 million and $795
million, respectively, for the three months ended March 31, 2025,
compared to $268 million and $750 million, respectively, for the
three months ended March 31, 2024.
Development
In the first quarter of 2025, we opened 186 hotels, totaling
20,100 rooms, resulting in 14,000 net room additions. We continued
to grow our pipeline of lifestyle properties during the quarter,
adding the Tempo by Hilton brand in the U.K., marking the brand's
first hotel outside of the U.S., the first Tapestry Collection by
Hilton and Curio Collection by Hilton hotels in Athens, Greece and
Canopy by Hilton in Utah, representing the brand's first ski
destination. In April 2025, we continued expanding our luxury
brands, opening the Waldorf Astoria Osaka and the Waldorf Astoria
Costa Rica Punta Cacique.
We added 32,600 rooms to the development pipeline during the
first quarter, and, as of March 31, 2025, our development pipeline
totaled 3,600 hotels representing 503,400 rooms throughout 123
countries and territories, including 27 countries and territories
where we had no existing hotels. Additionally, of the rooms in the
development pipeline, nearly half were under construction and more
than half were located outside of the U.S.
Balance Sheet and
Liquidity
As of March 31, 2025, we had $11.2 billion of debt outstanding,
excluding the deduction for deferred financing costs and discount,
with a weighted average interest rate of 4.77 percent. Excluding
all finance lease liabilities, we had $11.1 billion of debt
outstanding with a weighted average interest rate of 4.76 percent
and no scheduled maturities until April 2027, other than $500
million of outstanding Senior Notes due May 2025. We believe that
we have sufficient sources of liquidity and access to debt
financing to address the repayment of the Senior Notes due May
2025, as well as all indebtedness that becomes due thereafter, at
or prior to the respective maturity dates. As of March 31, 2025, no
amounts were outstanding under our $2.0 billion senior secured
revolving credit facility (the "Revolving Credit Facility"), which
had an available borrowing capacity of $1,908 million after
considering $92 million of outstanding letters of credit. In April
2025, we issued notice to borrow $500 million under the Revolving
Credit Facility and plan to use the proceeds, together with
available cash, to repay, at maturity, all $500 million in
aggregate principal amount of the Senior Notes due May 2025, plus
accrued and unpaid interest. Total cash and cash equivalents were
$807 million as of March 31, 2025, including $76 million of
restricted cash and cash equivalents.
In March 2025, we paid a quarterly cash dividend of $0.15 per
share of common stock, for a total dividend payment of $37 million
for the quarter. In April 2025, our board of directors authorized a
regular quarterly cash dividend of $0.15 per share of common stock
to be paid on June 27, 2025 to holders of record of our common
stock as of the close of business on May 23, 2025.
During the three months ended March 31, 2025, we repurchased 3.7
million shares of Hilton common stock at an average price per share
of $242.92, for a total of $890 million, returning $927 million of
capital to shareholders during the quarter including dividends.
The number of shares outstanding as of April 24, 2025 was 237.7
million. Total capital return year to date through April, including
dividends, was $1,157 million.
Outlook
Share-based metrics in Hilton's outlook include actual share
repurchases through the first quarter but do not include the effect
of potential share repurchases thereafter.
Full Year 2025
- System-wide comparable RevPAR, on a currency neutral basis, is
projected to be flat to an increase of 2.0 percent compared to
2024.
- Diluted EPS is projected to be between $7.04 and $7.22.
- Diluted EPS, adjusted for special items, is projected to be
between $7.76 and $7.94.
- Net income is projected to be between $1,707 million and $1,749
million.
- Adjusted EBITDA is projected to be between $3,650 million and
$3,710 million.
- Contract acquisition costs and capital expenditures, excluding
amounts reimbursed by third parties, are projected to be between
$250 million and $300 million.
- Capital return is projected to be approximately $3.3
billion.
- General and administrative expenses are projected to be between
$420 million and $430 million.
- Net unit growth is projected to be between 6.0 percent and 7.0
percent.
Second Quarter 2025
- System-wide comparable RevPAR, on a currency neutral basis, is
projected to be roughly flat compared to the second quarter of
2024.
- Diluted EPS is projected to be between $1.88 and $1.94.
- Diluted EPS, adjusted for special items, is projected to be
between $1.97 and $2.02.
- Net income is projected to be between $455 million and $469
million.
- Adjusted EBITDA is projected to be between $940 million and
$960 million.
Conference Call
Hilton will host a conference call to discuss first quarter of
2025 results on April 29, 2025 at 9:00 a.m. Eastern Time.
Participants may listen to the live webcast by logging on to the
Hilton Investor Relations website at
https://ir.hilton.com/events-and-presentations. A replay and
transcript of the webcast will be available within 24 hours after
the live event at https://ir.hilton.com/financial-reporting.
Alternatively, participants may listen to the live call by
dialing 1-888-317-6003 in the United States ("U.S.") or
1-412-317-6061 internationally using the conference ID 8610548.
Participants are encouraged to dial into the call or link to the
webcast at least fifteen minutes prior to the scheduled start time.
A telephone replay will be available for seven days following the
call. To access the telephone replay, dial 1-877-344-7529 in the
U.S. or 1-412-317-0088 internationally using the conference ID
9295017.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements include, but are not limited to,
statements related to our expectations regarding the performance of
our business, future financial results, liquidity and capital
resources and other non-historical statements. In some cases, you
can identify these forward-looking statements by the use of words
such as "outlook," "believes," "expects," "forecasts," "potential,"
"continues," "may," "will," "should," "could," "seeks," "projects,"
"predicts," "intends," "plans," "estimates," "anticipates" or the
negative version of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties including, among others, risks inherent to the
hospitality industry; macroeconomic factors beyond our control,
such as inflation, changes in interest rates, challenges due to
labor shortages or disputes and supply chain disruptions; the loss
of key senior management personnel; competition for hotel guests
and management and franchise contracts; risks related to doing
business with third-party hotel owners; performance of our
information technology systems; growth of reservation channels
outside of our system; risks of doing business outside of the U.S.;
risks associated with conflicts in Eastern Europe and the Middle
East; uncertainty resulting from U.S. and global political trends,
tariffs and other policies, including potential barriers to travel,
trade and immigration and other geopolitical events; and our
indebtedness. Additional factors that could cause our results to
differ materially from those described in the forward-looking
statements can be found under the section entitled "Part I—Item 1A.
Risk Factors" of our Annual Report on Form 10-K for the fiscal year
ended December 31, 2024, which is filed with the Securities and
Exchange Commission (the "SEC") and is accessible on the SEC's
website at www.sec.gov. Accordingly, there are or will be important
factors that could cause actual outcomes or results to differ
materially from those indicated in these statements. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this press release and in our filings with the SEC. We undertake
no obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as required by law.
Definitions
See the "Definitions" section for the definition of certain
terms used within this press release, including within the
schedules.
Non-GAAP Financial
Measures
We refer to certain financial measures that are not recognized
under U.S. generally accepted accounting principles ("GAAP") in
this press release, including: net income, adjusted for special
items; diluted EPS, adjusted for special items; Adjusted EBITDA;
Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA
ratio. See the schedules to this press release, including the
"Definitions" section, for additional information and
reconciliations of such non-GAAP financial measures, as well as the
most comparable GAAP financial measures.
About Hilton
Hilton (NYSE: HLT) is a leading global hospitality company with
a portfolio of 24 world-class brands comprising more than 8,600
properties and nearly 1.3 million rooms, in 139 countries and
territories. Dedicated to fulfilling its founding vision to fill
the earth with the light and warmth of hospitality, Hilton has
welcomed over 3 billion guests in its more than 100-year history,
was named the No.1 World's Best Workplace by Great Place to Work
and Fortune and has been recognized as a global leader on the Dow
Jones Sustainability Indices. Hilton has introduced
industry-leading technology enhancements to improve the guest
experience, including Digital Key Share, automated complimentary
room upgrades and the ability to book confirmed connecting rooms.
Through the award-winning guest loyalty program Hilton Honors, the
more than 218 million Hilton Honors members who book directly with
Hilton can earn Points for hotel stays and experiences money can't
buy. With the free Hilton Honors app, guests can book their stay,
select their room, check in, unlock their door with a Digital Key
and check out, all from their smartphone. Visit stories.hilton.com
for more information, and connect with Hilton on
facebook.com/hiltonnewsroom, x.com/hiltonnewsroom,
linkedin.com/company/hilton, instagram.com/hiltonnewsroom and
youtube.com/hiltonnewsroom.
HILTON WORLDWIDE HOLDINGS
INC.
EARNINGS RELEASE
SCHEDULES
TABLE OF CONTENTS
Condensed Consolidated Statements of
Operations
Comparable and Currency Neutral
System-Wide Hotel Operating Statistics
Property Summary
Capital Expenditures and Contract
Acquisition Costs
Reconciliations of Non-GAAP Financial
Measures
Definitions
HILTON WORLDWIDE HOLDINGS
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in millions, except per share
amounts)
(unaudited)
Three Months Ended
March 31,
2025
2024
Revenues
Franchise and licensing fees
$
625
$
571
Base and other management fees
88
106
Incentive management fees
72
70
Ownership(1)
234
255
Other revenues
46
50
1,065
1,052
Cost reimbursement revenues(1)
1,630
1,521
Total revenues
2,695
2,573
Expenses
Ownership(1)
239
247
Depreciation and amortization
41
36
General and administrative
94
104
Other expenses
26
30
400
417
Reimbursed expenses(1)
1,759
1,630
Total expenses
2,159
2,047
Gain on sales of assets, net
—
7
Operating income
536
533
Interest expense
(145
)
(131
)
Gain (loss) on foreign currency
transactions
2
(1
)
Other non-operating income (loss), net
17
(36
)
Income before income taxes
410
365
Income tax expense
(110
)
(97
)
Net income
300
268
Net income attributable to redeemable
and nonredeemable noncontrolling interests
—
(3
)
Net income attributable to Hilton
stockholders
$
300
$
265
Weighted average shares
outstanding:
Basic
240
252
Diluted
243
255
Earnings per share:
Basic
$
1.25
$
1.05
Diluted
$
1.23
$
1.04
Cash dividends declared per
share
$
0.15
$
0.15
____________
(1)
During the three months ended March 31,
2025, we revised the captions for owned and leased hotels revenues
and expenses to ownership revenues and expenses, respectively, and
revised the captions for other revenues from managed and franchised
properties and other expenses from managed and franchised
properties to cost reimbursement revenues and reimbursed expenses,
respectively. The significant accounting policies for revenues and
expenses recognized in each respective line item did not change and
are disclosed in Note 2: "Basis of Presentation and Summary of
Significant Accounting Policies" of our Annual Report on Form 10-K
for the fiscal year ended December 31, 2024. Prior period amounts
are presented on the same basis as amounts for the three months
ended March 31, 2025.
HILTON WORLDWIDE HOLDINGS
INC.
COMPARABLE AND CURRENCY
NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY REGION, BRAND AND
SEGMENT
(unaudited)
Three Months Ended March
31,
Occupancy
ADR
RevPAR
2025
vs. 2024
2025
vs. 2024
2025
vs. 2024
System-wide
66.8
%
0.4
%
pts.
$
155.07
1.8
%
$
103.59
2.5
%
Region
U.S.
67.7
%
0.2
%
pts.
$
164.58
1.7
%
$
111.39
2.1
%
Americas (excluding U.S.)
64.4
0.4
153.63
7.1
98.92
7.7
Europe
64.5
0.6
138.58
1.6
89.34
2.6
Middle East & Africa
70.8
2.1
202.79
5.3
143.55
8.5
Asia Pacific
64.1
0.8
107.09
(1.2
)
68.69
—
Brand
Waldorf Astoria Hotels & Resorts
63.6
%
4.5
%
pts.
$
563.13
3.0
%
$
358.33
10.7
%
Conrad Hotels & Resorts
72.4
2.4
280.10
2.3
202.78
5.8
LXR Hotels & Resorts
48.0
1.5
381.63
1.5
183.30
4.7
Canopy by Hilton
68.0
3.2
214.96
2.0
146.12
7.0
Hilton Hotels & Resorts
66.2
0.7
189.68
2.2
125.57
3.4
Curio Collection by Hilton
68.3
3.4
232.85
1.1
159.12
6.4
DoubleTree by Hilton
63.7
0.2
139.71
1.7
89.01
2.0
Tapestry Collection by Hilton
61.9
1.4
173.43
2.2
107.41
4.5
Embassy Suites by Hilton
70.6
(0.3
)
183.12
1.8
129.36
1.3
Motto by Hilton
76.8
4.0
167.79
3.6
128.86
9.4
Hilton Garden Inn
65.2
0.6
135.99
1.0
88.71
1.8
Hampton by Hilton
65.4
(0.2
)
123.83
1.0
80.95
0.7
Tru by Hilton
67.0
0.8
123.01
0.7
82.36
1.9
Spark by Hilton
65.3
13.0
130.95
0.9
85.55
26.1
Homewood Suites by Hilton
75.0
(0.1
)
152.43
0.9
114.33
0.7
Home2 Suites by Hilton
72.8
0.4
133.91
1.6
97.54
2.2
Segment
Management and franchise
66.8
%
0.4
%
pts.
$
154.58
1.8
%
$
103.24
2.4
%
Ownership(1)
67.7
0.2
195.71
3.5
132.49
3.9
____________
(1)
Includes hotels owned or leased by
entities in which we own a noncontrolling financial interest.
HILTON WORLDWIDE HOLDINGS
INC.
PROPERTY SUMMARY
As of March 31, 2025
Ownership(1)
Managed
Franchised / Licensed
Total
Properties
Rooms
Properties
Rooms
Properties
Rooms
Properties
Rooms
Waldorf Astoria Hotels & Resorts
2
463
32
8,338
—
—
34
8,801
Conrad Hotels & Resorts
1
164
43
14,004
4
2,496
48
16,664
LXR Hotels & Resorts
—
—
7
1,155
8
1,464
15
2,619
NoMad
—
—
1
91
—
—
1
91
Signia by Hilton
—
—
4
2,797
—
—
4
2,797
Canopy by Hilton
—
—
12
2,033
32
5,731
44
7,764
Hilton Hotels & Resorts
44
14,979
302
128,655
271
83,415
617
227,049
Curio Collection by Hilton
—
—
26
6,009
153
27,969
179
33,978
Graduate by Hilton
—
—
—
—
35
5,883
35
5,883
DoubleTree by Hilton
—
—
169
45,913
523
109,940
692
155,853
Tapestry Collection by Hilton
—
—
5
694
154
17,669
159
18,363
Embassy Suites by Hilton
—
—
40
10,551
228
51,285
268
61,836
Tempo by Hilton
—
—
1
661
3
563
4
1,224
Motto by Hilton
—
—
—
—
8
1,727
8
1,727
Hilton Garden Inn
—
—
125
24,563
943
133,026
1,068
157,589
Hampton by Hilton
—
—
53
8,550
3,052
338,842
3,105
347,392
Tru by Hilton
—
—
—
—
292
28,449
292
28,449
Spark by Hilton
—
—
—
—
130
11,582
130
11,582
Homewood Suites by Hilton
—
—
8
1,020
537
61,530
545
62,550
Home2 Suites by Hilton
—
—
2
210
782
85,348
784
85,558
Strategic partner hotels(2)
—
—
—
—
449
21,585
449
21,585
Other(3)
—
—
3
1,087
13
3,343
16
4,430
Total hotels
47
15,606
833
256,331
7,617
991,847
8,497
1,263,784
Hilton Grand Vacations(4)
—
—
—
—
105
18,408
105
18,408
Total system
47
15,606
833
256,331
7,722
1,010,255
8,602
1,282,192
Ownership(1)
Managed
Franchised / Licensed
Total
Properties
Rooms
Properties
Rooms
Properties
Rooms
Properties
Rooms
U.S.
—
—
187
81,233
5,773
742,500
5,960
823,733
Americas (excluding U.S.)
1
405
69
17,690
403
54,994
473
73,089
Europe
37
10,662
111
28,196
686
84,793
834
123,651
Middle East & Africa
3
1,376
112
31,075
34
5,128
149
37,579
Asia Pacific
6
3,163
354
98,137
721
104,432
1,081
205,732
Total hotels
47
15,606
833
256,331
7,617
991,847
8,497
1,263,784
Hilton Grand Vacations(4)
—
—
—
—
105
18,408
105
18,408
Total system
47
15,606
833
256,331
7,722
1,010,255
8,602
1,282,192
____________
(1)
Includes hotels owned or leased by
entities in which we own a noncontrolling financial interest.
(2)
Includes hotels that are included in our
booking channels and participate in the Hilton Honors guest loyalty
program through strategic partnership arrangements.
(3)
Includes other hotels in our system that
are not distinguished by a specific Hilton brand.
(4)
Includes properties under timeshare brands
including Hilton Club, Hilton Grand Vacations Club and Hilton
Vacation Club.
HILTON WORLDWIDE HOLDINGS
INC.
CAPITAL EXPENDITURES AND
CONTRACT ACQUISITION COSTS
(dollars in millions)
(unaudited)
Three Months Ended
March 31,
Increase / (Decrease)
2025
2024
$
%
Capital expenditures for property and
equipment(1)
$
19
$
16
3
18.8
Capitalized software costs(2)
21
18
3
16.7
Total capital expenditures
40
34
6
17.6
Contract acquisition costs, net of
refunds
30
37
(7
)
(18.9
)
Total capital expenditures and contract
acquisition costs
$
70
$
71
(1
)
(1.4
)
____________
(1)
Represents expenditures for hotels,
corporate and other property and equipment, which include amounts
reimbursed by third parties of $12 million and $8 million for the
three months ended March 31, 2025 and 2024, respectively. Excludes
expenditures for FF&E replacement reserves of $13 million and
$11 million for the three months ended March 31, 2025 and 2024,
respectively.
(2)
Includes $20 million and $17 million of
expenditures that were reimbursed to us by third parties for the
three months ended March 31, 2025 and 2024, respectively.
HILTON WORLDWIDE HOLDINGS
INC.
RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES
NET INCOME AND DILUTED EPS,
ADJUSTED FOR SPECIAL ITEMS
(in millions, except per share
data)
(unaudited)
Three Months Ended
March 31,
2025
2024
Net income attributable to Hilton
stockholders, as reported
$
300
$
265
Diluted EPS, as reported
$
1.23
$
1.04
Special items:
Cost reimbursement revenues(1)
$
(1,630
)
$
(1,521
)
Reimbursed expenses(1)
1,759
1,630
Loss on debt guarantees(2)
—
47
FF&E replacement reserves
13
11
Gain on sales of assets, net
—
(7
)
Tax-related adjustments(3)
2
—
Other adjustments(4)
10
5
Total special items before taxes
154
165
Income tax expense on special items
(36
)
(40
)
Total special items after taxes
$
118
$
125
Net income, adjusted for special items
$
418
$
390
Diluted EPS, adjusted for special
items
$
1.72
$
1.53
____________
(1)
Amounts include results from the operation
of programs conducted for the benefit of property owners and
exclude cash receipts recorded as deferred revenues on our
condensed consolidated balance sheets related to these programs.
Under the terms of the related contracts, we do not operate these
programs to generate a profit and have contractual rights to adjust
future collections to recover prior period expenditures.
(2)
Amount includes losses on debt guarantees
for certain hotels that we manage, which were recognized in other
non-operating loss, net.
(3)
Amount includes income tax expenses
(benefits) related to the enactment of new tax laws and certain
changes in unrecognized tax expenses (benefits).
(4)
Amount for the three months ended March
31, 2025 includes restructuring costs related to one of our leased
properties, which were recognized in ownership expenses. Amount for
the three months ended March 31, 2024 primarily relates to
transaction costs incurred for acquisitions, which were recognized
in general and administrative expenses. Amounts for both periods
include net losses (gains) related to certain of our investments in
unconsolidated affiliates, which were recognized in other
non-operating income (loss), net and the amortization expense
related to finite-lived intangible assets that were recorded at
fair value in 2007 when the Company became a wholly owned
subsidiary of affiliates of Blackstone Inc., which was recognized
in depreciation and amortization expenses.
HILTON WORLDWIDE HOLDINGS
INC.
RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES
NET INCOME MARGIN AND
ADJUSTED EBITDA AND ADJUSTED
EBITDA MARGIN
(dollars in millions)
(unaudited)
Three Months Ended
March 31,
2025
2024
Net income
$
300
$
268
Interest expense
145
131
Income tax expense
110
97
Depreciation and amortization expenses
41
36
Gain on sales of assets, net
—
(7
)
Loss (gain) on foreign currency
transactions
(2
)
1
Loss on debt guarantees(1)
—
47
FF&E replacement reserves
13
11
Share-based compensation expense
36
41
Amortization of contract acquisition
costs
14
12
Cost reimbursement revenues(2)
(1,630
)
(1,521
)
Reimbursed expenses(2)
1,759
1,630
Other adjustments(3)
9
4
Adjusted EBITDA
$
795
$
750
____________
(1)
Amount includes losses on debt guarantees
for certain hotels that we manage, which were recognized in other
non-operating loss, net.
(2)
Amounts include results from the operation
of programs conducted for the benefit of property owners and
exclude cash receipts recorded as deferred revenues on our
condensed consolidated balance sheets related to these programs.
Under the terms of the related contracts, we do not operate these
programs to generate a profit and have contractual rights to adjust
future collections to recover prior period expenditures.
(3)
Amount for the three months ended March
31, 2025 includes restructuring costs related to one of our leased
properties. Amount for the three months ended March 31, 2024
primarily relates to transaction costs incurred for acquisitions.
Amounts for both periods include net losses (gains) related to
certain of our investments in unconsolidated affiliates, severance
and other items.
Three Months Ended
March 31,
2025
2024
Total revenues, as reported
$
2,695
$
2,573
Add: amortization of contract acquisition
costs
14
12
Less: cost reimbursement revenues(1)
(1,630
)
(1,521
)
Total revenues, as adjusted
$
1,079
$
1,064
Net income
$
300
$
268
Net income margin
11.1
%
10.4
%
Adjusted EBITDA
$
795
$
750
Adjusted EBITDA margin
73.7
%
70.4
%
____________
(1)
Amounts include revenues from the
operation of programs conducted for the benefit of property owners
and exclude cash receipts recorded as deferred revenues on our
condensed consolidated balance sheets related to these programs.
Under the terms of the related contracts, we do not operate these
programs to generate a profit and have contractual rights to adjust
future collections to recover prior period expenditures.
HILTON WORLDWIDE HOLDINGS
INC.
RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES
LONG-TERM DEBT TO NET INCOME
RATIO AND
NET DEBT AND NET DEBT TO
ADJUSTED EBITDA RATIO
(dollars in millions)
(unaudited)
March 31,
December 31,
2025
2024
Long-term debt, including current
maturities
$
11,152
$
11,151
Add: unamortized deferred financing costs
and discount
82
85
Long-term debt, including current
maturities and excluding the deduction for unamortized deferred
financing costs and discount
11,234
11,236
Less: cash and cash equivalents
(731
)
(1,301
)
Less: restricted cash and cash
equivalents
(76
)
(75
)
Net debt
$
10,427
$
9,860
Three Months Ended
Year Ended
TTM Ended
March 31,
December 31,
March 31,
2025
2024
2024
2025
Net income
$
300
$
268
$
1,539
$
1,571
Interest expense
145
131
569
583
Income tax expense
110
97
244
257
Depreciation and amortization expenses
41
36
146
151
Loss (gain) on sales of assets, net
—
(7
)
(5
)
2
Loss (gain) on foreign currency
transactions
(2
)
1
12
9
Loss on debt guarantees(1)
—
47
50
3
FF&E replacement reserves
13
11
57
59
Share-based compensation expense
36
41
176
171
Amortization of contract acquisition
costs
14
12
50
52
Cost reimbursement revenues(2)
(1,630
)
(1,521
)
(6,428
)
(6,537
)
Reimbursed expenses(2)
1,759
1,630
6,985
7,114
Other adjustments(3)
9
4
34
39
Adjusted EBITDA
$
795
$
750
$
3,429
$
3,474
Long-term debt
$
11,152
Long-term debt to net income ratio
7.1
Net debt
$
10,427
Net debt to Adjusted EBITDA ratio
3.0
____________
(1)
Amount includes losses on debt guarantees
for certain hotels that we manage, which were recognized in other
non-operating loss, net.
(2)
Amounts include results from the operation
of programs conducted for the benefit of property owners and
exclude cash receipts recorded as deferred revenues on our
condensed consolidated balance sheets related to these programs.
Under the terms of the related contracts, we do not operate these
programs to generate a profit and have contractual rights to adjust
future collections to recover prior period expenditures.
(3)
Amounts for the three months ended March
31, 2025 and year ended December 31, 2024 include restructuring
costs related to certain leased properties. Amounts for the three
months ended March 31, 2024 and year ended December 31, 2024
include transaction costs incurred for acquisitions. Amount for the
year ended December 31, 2024 also includes losses for the full or
partial settlement of certain pension plans as well as transaction
costs incurred for the amendment of our senior secured term loan
facility in June 2024. Amounts for all periods include net losses
(gains) related to certain of our investments in unconsolidated
affiliates, severance and other items.
HILTON WORLDWIDE HOLDINGS
INC.
RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES
OUTLOOK: NET INCOME AND
DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS
(in millions, except per share
data)
(unaudited)
Three Months Ending
June 30, 2025
Low Case
High Case
Net income attributable to Hilton
stockholders
$
454
$
468
Diluted EPS(1)
$
1.88
$
1.94
Special items(2):
FF&E replacement reserves
$
21
$
21
Other adjustments
2
2
Total special items before taxes
23
23
Income tax expense on special items
(4
)
(4
)
Total special items after taxes
$
19
$
19
Net income, adjusted for special items
$
473
$
487
Diluted EPS, adjusted for special
items(1)
$
1.97
$
2.02
Year Ending
December 31, 2025
Low Case
High Case
Net income attributable to Hilton
stockholders
$
1,702
$
1,744
Diluted EPS(1)
$
7.04
$
7.22
Special items(2):
Cost reimbursement revenues
$
(1,630
)
$
(1,630
)
Reimbursed expenses
1,759
1,759
FF&E replacement reserves
73
73
Tax related adjustments
2
2
Other adjustments
16
16
Total special items before taxes
220
220
Income tax expense on special items
(47
)
(47
)
Total special items after taxes
$
173
$
173
Net income, adjusted for special items
$
1,875
$
1,917
Diluted EPS, adjusted for special
items(1)
$
7.76
$
7.94
____________
(1)
Does not include the effect of potential
share repurchases.
(2)
See "—Net Income and Diluted EPS, Adjusted
for Special Items" for details of these special items.
HILTON WORLDWIDE HOLDINGS
INC.
RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES
OUTLOOK: NET INCOME AND
ADJUSTED EBITDA
(in millions)
(unaudited)
Three Months Ending
June 30, 2025
Low Case
High Case
Net income
$
455
$
469
Interest expense
156
156
Income tax expense
193
199
Depreciation and amortization expenses
41
41
FF&E replacement reserves
21
21
Share-based compensation expense
56
56
Amortization of contract acquisition
costs
13
13
Other adjustments(1)
5
5
Adjusted EBITDA
$
940
$
960
Year Ending
December 31, 2025
Low Case
High Case
Net income
$
1,707
$
1,749
Interest expense
624
624
Income tax expense
706
724
Depreciation and amortization expenses
160
160
Gain on foreign currency transactions
(2
)
(2
)
FF&E replacement reserves
73
73
Share-based compensation expense
178
178
Amortization of contract acquisition
costs
55
55
Cost reimbursement revenues
(1,630
)
(1,630
)
Reimbursed expenses
1,759
1,759
Other adjustments(1)
20
20
Adjusted EBITDA
$
3,650
$
3,710
____________
(1)
See "—Net Income Margin and Adjusted
EBITDA and Adjusted EBITDA Margin" for details of these
adjustments.
HILTON WORLDWIDE HOLDINGS INC.
DEFINITIONS
Trailing Twelve Month Financial
Information
This press release includes certain unaudited financial
information for the trailing twelve months ("TTM") ended March 31,
2025, which is calculated as the three months ended March 31, 2025
plus the year ended December 31, 2024 less the three months ended
March 31, 2024. This presentation is not in accordance with GAAP.
However, we believe that this presentation provides useful
information to investors regarding our recent financial
performance, and we view this presentation of the four most
recently completed fiscal quarters as a key measurement period for
investors to assess our historical results. In addition, our
management uses TTM information to evaluate our financial
performance for ongoing planning purposes.
Net Income (Loss), Adjusted for Special
Items, and Diluted EPS, Adjusted for Special Items
Net income (loss), adjusted for special items is calculated as
net income (loss) attributable to Hilton stockholders, as reported,
plus total special items after taxes. Net income (loss), adjusted
for special items, and diluted earnings (loss) per share ("EPS"),
adjusted for special items, are not recognized terms under GAAP and
should not be considered as alternatives to net income (loss),
diluted EPS or other measures of financial performance or liquidity
derived in accordance with GAAP. In addition, our definition of net
income (loss), adjusted for special items, and diluted EPS,
adjusted for special items, may not be comparable to similarly
titled measures of other companies.
Net income (loss), adjusted for special items, and diluted EPS,
adjusted for special items, are included to assist investors in
performing meaningful comparisons of past, present and future
operating results and as a means of highlighting the results of our
ongoing operations.
Adjusted EBITDA, Net Income (Loss) Margin
and Adjusted EBITDA Margin
Adjusted EBITDA is calculated as net income (loss), excluding
interest expense, a provision for income tax benefit (expense) and
depreciation and amortization expenses, as well as gains, losses,
revenues and expenses earned or incurred in connection with: (i)
asset dispositions for both consolidated and unconsolidated
investments; (ii) foreign currency transactions; (iii) debt
restructurings and retirements; (iv) furniture, fixtures, and
equipment ("FF&E") replacement reserves required under certain
lease agreements; (v) share-based compensation; (vi)
reorganization, severance, relocation and other expenses; (vii)
non-cash impairment; (viii) amortization of contract acquisition
costs; (ix) cost reimbursement revenues and reimbursed expenses;
and (x) other items.
Net income (loss) margin represents net income (loss) as a
percentage of total revenues. Adjusted EBITDA margin represents
Adjusted EBITDA as a percentage of total revenues, adjusted to
exclude the amortization of contract acquisition costs and cost
reimbursement revenues.
We believe that Adjusted EBITDA and Adjusted EBITDA margin
provide useful information to investors about us and our financial
condition and results of operations for the following reasons: (i)
these measures are used by our management team to evaluate our
operating performance and make day-to-day operating decisions and
(ii) these measures are frequently used by securities analysts,
investors and other interested parties as a common performance
measure to compare results or estimate valuations across companies
in our industry. Additionally, these measures exclude certain items
that can vary widely across different industries and among
competitors within our industry. For instance, interest expense and
income taxes are dependent on company specifics, including, among
other things, capital structure and operating jurisdictions,
respectively, and, therefore, could vary significantly across
companies. Depreciation and amortization expenses, as well as
amortization of contract acquisition costs, are dependent upon
company policies, including the method of acquiring and
depreciating assets and the useful lives that are assigned to those
depreciating or amortizing assets for accounting purposes. We also
exclude items such as: (i) FF&E replacement reserves for leased
hotels to be consistent with the treatment of capital expenditures
for property and equipment, where depreciation of such capitalized
assets is reported within depreciation and amortization expenses;
(ii) share-based compensation, as this could vary widely among
companies due to the different plans in place and the usage of
them; and (iii) other items that are not reflective of our
operating performance, such as amounts related to debt
restructurings and debt retirements and reorganization and related
severance costs, to enhance period-over-period comparisons of our
ongoing operations. Further, Adjusted EBITDA excludes both cost
reimbursement revenues and reimbursed expenses as we contractually
do not operate the related programs to generate a profit and have
contractual rights to adjust future collections to recover prior
period expenditures. The direct reimbursements from property owners
are billable and reimbursable as the costs are incurred and have no
net effect on net income (loss) in the reporting period. The
indirect reimbursements from property owners are typically billed
and collected monthly, based on the underlying hotel's sales or
usage (e.g., gross room revenue or number of reservations
processed), while the associated costs are recognized as incurred
by Hilton, creating timing differences, with the net effect
impacting net income (loss) in the reporting period. These timing
differences are due to our discretion to spend in excess of
revenues earned or less than revenues earned in a single period to
ensure that the programs are operated in the best long-term
interests of our property owners. However, over the life of the
operation of these programs, the expenses incurred related to the
indirect reimbursements are designed to equal the revenues earned
from the indirect reimbursements over time such that, in the long
term, the programs will not earn a profit or generate a loss and do
not impact our economics, either positively or negatively.
Therefore, the net effect of our reimbursed revenues and expenses
is not used by management to evaluate our operating performance,
determine executive compensation or make other operating decisions,
and we exclude their impact when evaluating period over period
performance results.
Adjusted EBITDA and Adjusted EBITDA margin are not recognized
terms under GAAP and should not be considered as alternatives,
either in isolation or as a substitute, for net income (loss), net
income (loss) margin or other measures of financial performance or
liquidity, including cash flows, derived in accordance with GAAP.
Further, Adjusted EBITDA and Adjusted EBITDA margin have
limitations as analytical tools, may not be comparable to similarly
titled measures of other companies and should not be considered as
other methods of analyzing our results as reported under GAAP.
Net Debt, Long-Term Debt to Net Income
(Loss) Ratio and Net Debt to Adjusted EBITDA Ratio
Long-term debt to net income (loss) ratio is calculated as the
ratio of Hilton's long-term debt, including current maturities, to
net income (loss). Net debt is calculated as: long-term debt,
including current maturities and excluding the deduction for
unamortized deferred financing costs and discounts; reduced by: (i)
cash and cash equivalents and (ii) restricted cash and cash
equivalents. Net debt to Adjusted EBITDA ratio is calculated as the
ratio of Hilton's net debt to Adjusted EBITDA. Net debt and net
debt to Adjusted EBITDA ratio, presented herein, are non-GAAP
financial measures that the Company uses to evaluate its financial
leverage.
Net debt should not be considered as a substitute to debt
presented in accordance with GAAP, and net debt to Adjusted EBITDA
ratio should not be considered as an alternative to measures of
financial condition derived in accordance with GAAP. Net debt and
net debt to Adjusted EBITDA ratio may not be comparable to
similarly titled measures of other companies. We believe net debt
and net debt to Adjusted EBITDA ratio provide useful information
about our indebtedness to investors as they are frequently used by
securities analysts, investors and other interested parties to
compare the indebtedness between companies.
Comparable Hotels
We define our comparable hotels as those that: (i) were active
and operating in our system for at least one full calendar year,
have not undergone a change in brand or ownership type during the
current or comparable periods and were open January 1st of the
previous year; and (ii) have not undergone large-scale capital
projects, sustained substantial property damage, encountered
business interruption or for which comparable results were not
available. We exclude strategic partner hotels from our comparable
hotels. Of the 8,497 hotels in our system as of March 31, 2025, 449
hotels were strategic partner hotels and 6,503 hotels were
classified as comparable hotels. Our 1,545 non-comparable hotels as
of March 31, 2025 included (i) 742 hotels that were added to our
system after January 1, 2024 or that have undergone a change in
brand or ownership type during the current or comparable periods
reported and (ii) 803 hotels that were removed from the comparable
group for the current or comparable periods reported because they
underwent or are undergoing large-scale capital projects, sustained
substantial property damage, encountered business interruption or
comparable results were otherwise not available.
Occupancy
Occupancy represents the total number of room nights sold
divided by the total number of room nights available at a hotel or
group of hotels for a given period. Occupancy measures the
utilization of available capacity at a hotel or group of hotels.
Management uses occupancy to gauge demand at a specific hotel or
group of hotels in a given period. Occupancy levels also help
management determine achievable Average Daily Rate ("ADR") pricing
levels as demand for hotel rooms increases or decreases.
ADR
ADR represents hotel room revenue divided by the total number of
room nights sold for a given period. ADR measures the average room
price attained by a hotel, and ADR trends provide useful
information concerning the pricing environment and the nature of
the customer base of a hotel or group of hotels. ADR is a commonly
used performance measure in the industry, and we use ADR to assess
pricing levels that we are able to generate by type of customer, as
changes in rates charged to customers have different effects on
overall revenues and incremental profitability than changes in
occupancy, as described above.
Revenue per Available Room
("RevPAR")
RevPAR is calculated by dividing hotel room revenue by the total
number of room nights available to guests for a given period. We
consider RevPAR to be a meaningful indicator of our performance as
it provides a metric correlated to two primary and key drivers of
operations at a hotel or group of hotels, as previously described:
occupancy and ADR. RevPAR is also a useful indicator in measuring
performance over comparable periods for comparable hotels.
References to occupancy, ADR and RevPAR are presented on a
comparable basis, based on the comparable hotels as of March 31,
2025, and references to ADR and RevPAR are presented on a currency
neutral basis, unless otherwise noted. As such, comparisons of
these hotel operating statistics for the three months ended March
31, 2025 and 2024 use foreign currency exchange rates for the three
months ended March 31, 2025.
Pipeline
Rooms under construction include rooms for hotels under
construction or operating hotels that are in the process of
conversion to our system.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250429873574/en/
Investor Contact Jill Chapman +1 703 883 1000
Media Contact Kent Landers +1 703 883 3246
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