Operations and Growth - As of December 31, 2024, Hilton operates 8,447 properties with a total of 1,268,206 rooms across 140 countries, reflecting a 7.3% net unit growth for the year[21]. - In 2024, Hilton opened 973 hotels, adding approximately 98,400 rooms, with a net addition of 904 hotels and 83,000 rooms[21]. - The development pipeline includes 1,432 hotels with approximately 154,200 rooms expected to be added, with nearly half of these rooms located outside the U.S.[22]. - As of December 31, 2024, Hilton's total system included 8,447 hotels with 1,268,206 rooms, comprising 50 owned/leased hotels with 17,138 rooms, 831 managed hotels with 255,291 rooms, and 7,566 franchised/licensed hotels with 995,777 rooms[52]. - As of December 31, 2024, the company has 3,578 hotels in its development pipeline, with 225,100 rooms currently under construction[116]. Customer Loyalty and Brand Strategy - The Hilton Honors loyalty program has grown to 211 million members, a 17% increase from the previous year[19]. - Hilton Honors loyalty program has 211 million members, significantly increasing repeat business and travel spend captured from loyalty members as they move up tiers[50]. - The company emphasizes its commitment to exceptional customer experiences across its diverse brand portfolio, which includes luxury, lifestyle, and midscale offerings[24]. - Hilton's various hotel brands, including Spark by Hilton and Homewood Suites by Hilton, cater to different market segments, enhancing overall portfolio diversity[44][45]. - The company focuses on reducing emissions, water, and waste intensity at its hotels, supported by utility cost savings measures[68]. Financial Performance and Revenue Generation - Hilton's management and franchise segment generates revenue from management and franchise fees, licensing fees, and hotel management fees, while the ownership segment primarily derives revenue from room sales and services[20]. - The company generates revenues from transient and group guests, with group business including room accommodations and ancillary services[213]. - Revenues from managed and franchised properties include contractually reimbursed amounts, primarily for payroll and related costs, with no net effect on operating income[214]. - Fixed expenses, including personnel costs and rent, are significant, and economic downturns can adversely affect net cash flows and profits[215]. - The company anticipates increased costs of property, general liability, and excess liability insurance across the portfolio in 2025 due to significant losses suffered by insurers globally in recent years[155]. Market Position and Competition - The competitive landscape shows Hilton with a 17.9% share of total rooms among selected competitors, highlighting its strong market position[25]. - The company competes for management and franchise contracts based on the quality of services and brand recognition[105]. - The hospitality industry is cyclical, with demand generally following key macroeconomic indicators, leading to potential volatility in results[91]. - The company faces risks related to third-party hotel owners' financial difficulties, which could reduce revenues and profits[111]. Employee and Workforce Management - As of December 31, 2024, Hilton employed approximately 181,000 individuals at its owned, leased, and managed hotels and corporate offices, with an additional 311,000 individuals employed by third-party owners at franchised properties[73]. - Approximately 25% of Hilton's global workforce and 40% of U.S. employees were covered by collective bargaining agreements as of December 31, 2024[77]. - Hilton's commitment to employee retention is reflected in approximately 32% of U.S. employees having been with the company for at least 10 years[80]. - The company focuses on labor shortages and the loss of key management personnel could hinder the company's growth and operational efficiency[148]. Sustainability and Corporate Responsibility - Hilton Global Foundation announced $5.3 million in grants for environmental sustainability, hospitality career development, and community resilience in 2024[66]. - The company emphasizes environmentally friendly products and operations, particularly in its Home2 Suites by Hilton brand[46]. - Hilton's Travel with Purpose strategy includes well-defined targets for emissions, water, and waste reduction[63]. - The company is subject to evolving sustainability regulations that could increase compliance costs and expose it to reputational risks[160]. Risks and Challenges - Macroeconomic conditions and public health concerns can adversely affect demand for hospitality products and services, impacting revenue sources[101]. - The company faces risks related to compliance with international laws, which could increase costs and reduce profits[143]. - The company is exposed to various risks associated with owned and leased real estate, including governmental regulations and fluctuations in property values[118]. - Cyber-attacks pose a risk to the company's operations, potentially leading to data breaches and operational disruptions[125]. Financial Obligations and Debt Management - As of December 31, 2024, the company's total indebtedness was approximately $11.2 billion, with long-term debt maturities of $535 million, $31 million, and $616 million for the years ending December 31, 2025, 2026, and 2027 respectively[167]. - Hilton's ability to generate sufficient cash flow to service its debt and meet other commitments is subject to various factors beyond its control[169]. - The company may incur additional debt, which could increase financial risks and leverage[175]. Technology and Cybersecurity - The company relies heavily on information technology systems, and failures or interruptions could materially affect operations and financial performance[121]. - Hilton's cybersecurity governance includes a dedicated Global Information Security team led by the Chief Information Security Officer[180]. - The Audit Committee assists the board in monitoring cybersecurity risks through quarterly reports from the Chief Information Officer and the CISO[181]. - The company has adopted a Cybersecurity Policy requiring all employees to report potential cybersecurity incidents immediately[182].

Group 1 - Hilton Worldwide Holdings Inc. reported quarterly earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.68 per share, and showing an increase from $1.68 per share a year ago, representing an earnings surprise of 4.76% [1] - The company posted revenues of $2.78 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.29%, and an increase from $2.61 billion year-over-year [2] - Hilton Worldwide has outperformed the S&P 500, with shares increasing about 4.3% since the beginning of the year compared to the S&P 500's gain of 3.1% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $2.78 billion, and for the current fiscal year, it is $7.86 on revenues of $12.1 billion [7] - The Hotels and Motels industry, to which Hilton belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Hilton Worldwide reported better-than-expected earnings for Q4 2024, with adjusted EPS of $1.76, surpassing market expectations of $1.69, while total revenue was slightly below projections at $2.783 billion compared to the forecasted $2.794 billion [2][7] Financial Performance - Adjusted EPS for Q4 2024 was $1.76, reflecting a year-over-year increase of 4.8% from $1.68 in Q4 2023 [3] - Total revenue reached $2.783 billion, marking a 6.7% increase from $2.609 billion in Q4 2023, although it fell short of estimates [3][7] - Net income soared to $505 million, a significant increase of 236.7% from $150 million in the same quarter last year, largely due to an income tax benefit [3][6] - Adjusted EBITDA rose 6.8% year-over-year to $858 million, indicating operational efficiency [3][6] - RevPAR increased by 3.5% during the quarter, although this growth was lower than the previous year's 5.7% [3][8] Business Strategy - Hilton operates a diverse portfolio of hotels and resorts across 126 countries, catering to various market segments, which helps in capturing a wide customer demographic [4] - The company emphasizes an asset-light management and franchise model, allowing for scalable growth without significant capital investment [5] - Hilton approved 34,200 new rooms in Q4, with a development pipeline of nearly 498,600 rooms, positioning itself for future growth [9] Market Outlook - For the upcoming year, Hilton anticipates a RevPAR increase of 2% to 3% and projects net income between $1.829 billion and $1.858 billion, with adjusted EBITDA forecasted between $3.7 billion and $3.74 billion [12] - The company is focusing on Environmental, Social, and Governance (ESG) initiatives to enhance brand appeal and foster long-term loyalty [10]

Financial Performance - Diluted EPS for Q4 2024 was $2.06 and $6.14 for the full year, exceeding guidance[1] - Net income for Q4 2024 was $505 million and $1,539 million for the full year, also exceeding guidance[1] - Total revenues for Q4 2024 reached $2.783 billion, a 6.7% increase from $2.609 billion in Q4 2023[27] - For the year ended December 31, 2024, total revenues were $11.174 billion, a 9.2% increase from $10.235 billion in 2023[27] - Net income attributable to Hilton stockholders for Q4 2024 was $505 million, compared to $147 million in Q4 2023, representing a 243.5% increase[27] - For the full year 2024, net income attributable to Hilton stockholders was $1.535 billion, compared to $1.141 billion in 2023, reflecting a robust year-over-year growth[39] - The company reported a net income of $1,539 million for the year ended December 31, 2024, compared to $1,151 million in 2023, marking a 33.7% increase[45] Revenue Metrics - System-wide comparable RevPAR increased by 3.5% in Q4 and 2.7% for the full year compared to 2023[2][3] - Revenue per Available Room (RevPAR) for Q4 2024 increased by 3.5% to $110.33 from $106.55 in Q4 2023[28] - Average Daily Rate (ADR) for Q4 2024 was $157.73, reflecting a 1.9% increase from $154.83 in Q4 2023[28] - Hilton's management and franchise segment reported a RevPAR increase of 3.5% to $109.46 for Q4 2024 compared to Q4 2023[28] Development and Growth - Approved 34,200 new rooms for development in Q4 2024, bringing the total development pipeline to 498,600 rooms, an 8% increase from 2023[1][7] - Net unit growth for 2024 was 7.3%, with 98,400 room openings for the year[1][6] - The total number of hotels in the Hilton system reached 8,447 properties with 1,268,206 rooms as of December 31, 2024[32] Cash and Capital Management - As of December 31, 2024, total cash and cash equivalents were $1,376 million[8] - The company repurchased 3.1 million shares in Q4 2024, totaling $744 million, with a full year capital return of $3.0 billion[10] - Capital return for 2025 is projected to be approximately $3.3 billion[1] Future Projections - Full year 2025 net income is projected to be between $1,829 million and $1,858 million[1] - Full year 2025 Adjusted EBITDA is projected to be between $3,700 million and $3,740 million[1] - The company projects net income attributable to Hilton stockholders for the three months ending March 31, 2025, to be between $371 million and $386 million[48] - For the year ending December 31, 2025, the projected net income attributable to Hilton stockholders is expected to be between $1,823 million and $1,852 million[48] Operational Efficiency - Adjusted EBITDA for the year ended December 31, 2024, was $1.780 billion, compared to $1.638 billion in 2023, showing a positive trend in operational performance[39] - Adjusted EBITDA for the year ending December 31, 2025, is forecasted to be between $3,700 million and $3,740 million[50] - The net income margin for the three months ended December 31, 2024, was 18.2%, significantly higher than 5.7% in the same period of 2023[42] Debt and Leverage - Long-term debt, including current maturities, increased to $11,151 million as of December 31, 2024, from $9,196 million in 2023, a rise of 21.1%[45] - The net debt to Adjusted EBITDA ratio improved to 2.9 in 2024 from 2.7 in 2023, indicating better leverage management[45] - The company uses net debt and net debt to Adjusted EBITDA ratio as non-GAAP financial measures to evaluate financial leverage[60] Cost Management - Total expenses for Q4 2024 were $2.294 billion, up from $2.209 billion in Q4 2023, marking a 3.8% increase[27] - The company experienced a decrease in contract acquisition costs, net of refunds, from $69 million in Q4 2023 to $18 million in Q4 2024, a decline of 73.9%[35] - Hilton's capital expenditures for property and equipment decreased by 36.4% from $151 million in 2023 to $96 million in 2024[35] Special Items - Hilton's total special items after taxes for Q4 2024 amounted to a loss of $73 million, compared to a gain of $287 million in Q4 2023[39] Hotel Classification and Metrics - The company defines comparable hotels as those active for at least one full calendar year without changes in brand or ownership, excluding strategic partner hotels[62] - The company has 1,883 non-comparable hotels as of December 31, 2024, which includes hotels added after January 1, 2023, or those undergoing significant changes[62] - Occupancy is calculated as the total number of room nights sold divided by total room nights available, serving as a gauge of demand[63] - Average Daily Rate (ADR) is determined by dividing hotel room revenue by the total number of room nights sold, providing insights into pricing levels[64] - Revenue per Available Room (RevPAR) is calculated by dividing hotel room revenue by total room nights available, indicating performance correlated to occupancy and ADR[65] - The pipeline includes rooms under construction for hotels being built or converted to the company's system[67]

Core Viewpoint - Hilton Worldwide Holdings Inc. is expected to report its fourth-quarter 2024 results on February 6, with positive indicators suggesting potential earnings growth and revenue increases compared to the previous year [1][4]. Financial Performance - In the last reported quarter, Hilton's adjusted earnings per share (EPS) was $1.92, exceeding the Zacks Consensus Estimate of $1.85 by 3.8%, and reflecting a 15% increase from the previous year's adjusted EPS of $1.67 [2]. - The Zacks Consensus Estimate for fourth-quarter EPS has risen to $1.68, indicating no year-over-year change, while revenue is projected at nearly $2.75 billion, suggesting a 5.3% growth from the prior year [3]. Revenue Drivers - Hilton's fourth-quarter revenue growth is attributed to strong group bookings, a recovery in business travel, and expansion in international markets [4]. - The company anticipates a revenue increase of 3.1% year-over-year from Management and Franchise Hotels (projected at $796.6 million) and a 7.7% increase from Owned and Leased Hotels (projected at $344.6 million) [6]. Margin and Cost Management - Hilton's margins are expected to benefit from disciplined pricing strategies and operational efficiencies, although inflationary pressures on labor and input costs may limit margin expansion [7]. Earnings Guidance - For the fourth quarter of 2024, Hilton expects net income between $371 million and $395 million, with adjusted EBITDA projected between $804 million and $834 million, and adjusted EPS anticipated to be between $1.57 and $1.67 [8]. Earnings Prediction - The company's model indicates a likely earnings beat, supported by a positive Earnings ESP of +1.42% and a Zacks Rank of 3 (Hold) [9].

Wall Street analysts forecast that Hilton Worldwide Holdings Inc. (HLT) will report quarterly earnings of $1.68 per share in its upcoming release, pointing to no change from the year-ago quarter. It is anticipated that revenues will amount to $2.75 billion, exhibiting an increase of 5.3% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of ...

Core Points - The Hilton Honors American Express Aspire Card is a premium travel rewards card designed for frequent travelers, offering luxurious perks and a high rewards rate [1][4][6] Group 1: Card Features - The card has a high annual fee of $550, which may be a consideration for potential cardholders [4][6] - Cardholders earn 14x points on eligible purchases made directly with Hilton properties, 7x points at U.S. restaurants, and 3x points on all other purchases [5][9] - The card provides complimentary Hilton Honors Diamond status, which includes benefits like room upgrades and executive lounge access [10][11] Group 2: Rewards and Benefits - The welcome offer allows new cardmembers to earn 175,000 Hilton Honors Bonus Points after spending $6,000 in the first 6 months, potentially worth $900 or more when redeemed for hotel stays [4][13] - Cardholders can receive up to $200 in statement credits for eligible purchases at Hilton Resorts every six months, along with additional credits for flight purchases and CLEAR Plus membership [10][11] - The card does not charge foreign transaction fees, making it advantageous for international travel [8] Group 3: Redemption and Other Benefits - The best value for points is achieved when redeemed for hotel stays, with points valued at approximately 0.6 cents each for such redemptions [10] - Other non-travel benefits include return protection, cell phone protection, and access to special events with American Express [15]

Core Viewpoint - Wall Street anticipates flat earnings for Hilton Worldwide Holdings Inc. in the upcoming quarter, with a consensus EPS estimate of $1.68, unchanged from the previous year, while revenues are expected to rise by 5.3% to $2.75 billion [1][3]. Earnings Expectations - The earnings report is scheduled for release on February 6, 2025, and could influence stock movement depending on whether actual results exceed or fall short of expectations [2]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.3% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Hilton Worldwide is higher than the Zacks Consensus Estimate, suggesting a recent bullish sentiment among analysts [10]. Earnings Surprise Prediction - Hilton Worldwide has an Earnings ESP of +1.42%, indicating a likelihood of beating the consensus EPS estimate [11]. - The stock currently holds a Zacks Rank of 3, which suggests a neutral outlook [11]. Historical Performance - In the last reported quarter, Hilton Worldwide exceeded the expected EPS of $1.85 by delivering $1.92, resulting in a surprise of +3.78% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Conclusion - While Hilton Worldwide is positioned as a strong candidate for an earnings beat, other factors should also be considered when evaluating the stock ahead of the earnings release [16].

Core Insights - Hilton Worldwide Holdings Inc. (HLT) has a strong history of beating earnings estimates and is well-positioned for future earnings success [1][3] - The company reported earnings of $1.92 per share for the most recent quarter, exceeding the expected $1.85 per share, resulting in a surprise of 3.78% [2] - The average surprise for the last two quarters was 3.51%, indicating consistent performance above expectations [1][2] Earnings Estimates and Predictions - Hilton Worldwide's earnings estimates have been trending higher, supported by its history of earnings surprises [3] - The company currently has an Earnings ESP of +1.42%, suggesting analysts are optimistic about its earnings prospects [6] - A positive Earnings ESP combined with a Zacks Rank of 3 (Hold) indicates a strong likelihood of another earnings beat [6] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] Upcoming Earnings Report - Hilton Worldwide's next earnings report is expected to be released on February 6, 2025 [6]

Company Performance and Growth - Hilton Worldwide Holdings Inc (HLT) has seen its shares gain 12.7% in the past six months, outperforming the Zacks Hotels and Motels industry, the Zacks Consumer Discretionary sector, and the S&P 500 [1] - The Zacks Consensus Estimate for the company's 2025 earnings per share (EPS) is $7.85, indicating 12.2% year-over-year growth, with first-quarter 2025 earnings estimates showing 7.8% year-over-year growth [3] - The company's earnings surpassed expectations in each of the trailing four quarters, with an average surprise of 5.8% [3] Demand and Revenue Trends - Hilton is benefiting from robust booking trends driven by strong demand for both corporate and social meetings and events, reflecting an increase in leisure and business travel demand [5] - In Q3 2024, the company's system-wide Revenue per Available Room (RevPAR) increased 1.4% year over year, with business transient RevPAR rising 2% [6] - Management forecasts a Q4 2024 system-wide RevPAR increase of 1-2% year over year, supported by robust group bookings and recovery in business transient travel [6] Global Expansion and Acquisitions - Hilton opened 531 new hotels in Q3 2024, achieving 7.8% net unit growth, with a development pipeline of nearly 3,525 hotels and 492,400 rooms across 120 countries and territories [7] - The company recently opened its 8,000th hotel globally and expanded to 900 hotels in Asia-Pacific and EMEA [8] - Hilton acquired the Graduate Hotels brand and a majority controlling interest in Sydell Group to expand its presence in the lifestyle and luxury hotel markets, with plans to develop up to 100 NoMad properties worldwide [9] Capital-Light Business Model - Hilton has transformed into a capital-light operating business, focusing on growing market share, units, and free cash flow per share while maintaining a strong balance sheet [10] - In Q3 2024, the company repurchased 3.3 million shares worth approximately $727 million and returned $2.4 billion to shareholders through buybacks and dividends through October [10] Challenges and Risks - RevPAR in China declined 9% year over year in Q3 2024 due to difficult domestic travel comparisons, typhoon disruptions, and limited international inbound travel [11] - Elevated inflation and interest rates pose challenges to Hilton's growth strategy, potentially delaying openings and new developments [12] - Consumer demand for services is sensitive to economic conditions, travel patterns, and discretionary spending levels, which could impact Hilton's revenues and profitability [13] Sector Comparison - Strategic Education, Inc (STRA) has a Zacks Rank 1, with a trailing four-quarter negative earnings surprise of 40.4% and a 5.6% stock gain in the past year [14] - Trip.com Group Limited (TCOM) has a Zacks Rank 1, with a trailing four-quarter earnings surprise of 42.8% and an 87.3% stock surge in the past year [15] - Universal Technical Institute, Inc (UTI) has a Zacks Rank 1, with a trailing four-quarter earnings surprise of 54.6% and an 88.8% stock hike in the past year [16]