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| Information Source: Nasdaq |
| Hilton Worldwide Holdings Inc. ("Hilton," "the Company," "we," "us" or "our") (NYSE: HLT) today reported its first quarter 2025 results. Highlights include: |
| This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250429873574/en/ |
- Diluted EPS was $1.23 for the first quarter, and diluted EPS, adjusted for special items, was $1.72
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- Net income was $300 million for the first quarter
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- Adjusted EBITDA was $795 million for the first quarter
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- System-wide comparable RevPAR increased 2.5 per cent, on a currency-neutral basis, for the first quarter compared to the same period in 2024
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- 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 a growth of 7 per cent from March 31, 2024
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- 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 per cent from March 31, 2024
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- 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
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- 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.
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- Full year 2025 capital return is projected to be approximately $3.3 billion.
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| 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 per cent compared to the same period in 2024 due to increases in both occupancy and ADR. Management and franchise fee revenues increased 5.1 per cent 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, for the three months ended March 31, 2024. |
| Development |
| In the first quarter of 2025, we opened 186 hotels, totalling 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 totalled 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 per cent. Excluding all finance lease liabilities, we had $11.1 billion of debt outstanding with a weighted average interest rate of 4.76 per cent 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 before 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 authorised 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 per cent compared to 2024.
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- Diluted EPS is projected to be between $7.04 and $7.22.
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- Diluted EPS, adjusted for special items, is projected to be between $7.76 and $7.94.
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- Net income is projected to be between $1,707 million and $1,749 million.
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- Adjusted EBITDA is projected to be between $3,650 million and $3,710 million.
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- Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are projected to be between $250 million and $300 million.
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- Capital return is projected to be approximately $3.3 billion.
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- General and administrative expenses are projected to be between $420 million and $430 million.
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- Net unit growth is projected to be between 6.0 per cent and 7.0 per cent.
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| 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.
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- Diluted EPS is projected to be between $1.88 and $1.94.
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- Diluted EPS, adjusted for special items, is projected to be between $1.97 and $2.02.
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- Net income is projected to be between $455 million and $469 million.
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- Adjusted EBITDA is projected to be between $940 million and $960 million.
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| For the full document, click the link below |
| Hilton Worldwide Holdings Inc. |
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