– Hilton Worldwide Holdings Inc. (“Hilton,” “the Company,” “we,” “us” or “our”) (NYSE: HLT) today
reported its first quarter 2025 results. Highlights include:
• 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 industryleading 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.
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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-andpresentations. 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.
