Core Viewpoint - Hilton Worldwide Holdings Inc. reported strong first-quarter 2024 results, with earnings and revenues exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2024 were $1.53, surpassing the Zacks Consensus Estimate of $1.41 by 8.5%, and increased 23.4% from $1.24 in the same quarter last year [2]. - Total revenues reached $2.57 billion, exceeding the consensus mark of $2.55 billion, reflecting a 12.2% year-over-year increase [2]. - Franchise and licensing fees improved by 12.4% year over year to $571 million, while base management fees rose 32.5% to $106 million, and incentive management fees increased by 7.7% to $70 million [2]. Revenue Metrics - System-wide comparable revenue per available room (RevPAR) grew by 2% year over year on a currency-neutral basis, driven by higher occupancy and average daily rates (ADR) [4]. - Adjusted EBITDA for the quarter was $750 million, marking a 17% increase year over year [4]. Balance Sheet and Shareholder Returns - As of March 31, 2024, cash and cash equivalents totaled $1.4 billion, up from $875 million in the previous quarter, while long-term debt increased to $10.3 billion from $9.3 billion [5]. - The company repurchased 3.4 million shares worth approximately $662 million and returned $0.7 billion to shareholders through buybacks and dividends [5]. - A quarterly cash dividend of 15 cents per share was declared, payable on June 28, 2024 [5]. Business Development - Hilton opened 106 new hotels in Q1 2024, achieving net unit growth of nearly 14,200 rooms [6]. - The development pipeline includes approximately 3,380 hotels with nearly 472,300 rooms across 119 countries, with expectations for net unit growth of 6-6.5% in 2024 [7]. Future Outlook - For Q2 2024, Hilton anticipates net income between $443-$457 million and adjusted EBITDA between $890 million and $910 million, with EPS projected between $1.80 and $1.86 [8]. - For the full year 2024, net income is estimated to be between $1.58-$1.62 billion, with adjusted EBITDA expected between $3.37 billion and $3.42 billion [9]. - The company forecasts a 2-4% increase in system-wide RevPAR for 2024 [9].

Financial Data and Key Metrics Changes - System-wide RevPAR increased by 2% year-over-year, which was at the low end of the guidance range due to renovations, inclement weather, and unfavorable holiday shifts [7][16] - Adjusted EBITDA for Q1 2024 was $750 million, up 17% year-over-year, exceeding the high end of guidance [16] - Diluted earnings per share adjusted for special items was $1.53 [16] Business Line Data and Key Metrics Changes - Leisure transient RevPAR exceeded expectations, driven by strength in international markets [7] - Business transient RevPAR across large corporates increased by more than 3%, supported by strong demand in consulting and government contracting [7] - Group RevPAR rose nearly 5% year-over-year, led by strong convention and social demand [7] Market Data and Key Metrics Changes - In the Americas outside the U.S., RevPAR increased by 7% year-over-year, with urban markets seeing a 10% growth [17] - Europe experienced a 10% year-over-year RevPAR growth, driven by strong performance across all segments [17] - The Middle East and Africa region saw a 15% increase in RevPAR year-over-year, attributed to both rate and occupancy growth [17] - Asia-Pacific RevPAR was up 8% year-over-year, with Japan and Korea leading in rate growth [18] Company Strategy and Development Direction - The company expects system-wide RevPAR growth of 2% to 4% for the full year, with positive growth across all major segments [8][19] - The development pipeline reached a record 472,000 rooms, up 10% year-over-year, with approximately 60% located outside the U.S. [10][18] - The company announced acquisitions to expand into lifestyle and experiences categories, including a controlling interest in Sydell Group and an agreement to acquire Graduate Hotels [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the broader economy, with strong employment numbers and corporate profits [24] - The group business remains strong, with expectations for continued growth in business transient demand [24][35] - Management noted that while leisure demand is normalizing, pricing power remains strong, allowing for modest growth [24][35] Other Important Information - The company paid a cash dividend of $0.15 per share during Q1 2024, totaling $39 million, and plans to return approximately $3 billion to shareholders for the full year [21] - Hilton Honors occupancy reached a historical high of 64%, up over 300 basis points year-over-year, indicating strong customer engagement [70] Q&A Session All Questions and Answers Question: Guidance for the back half of the year - Management noted that the first quarter's RevPAR was lighter than expected but explained by more rooms under construction and holiday shifts impacting results [23][24] Question: Performance of lower-end chain scale segments - Management expects modest positive performance in lower-end segments, although they will be lower than higher chain scale segments [30] Question: Group and business transient performance relative to 2019 - Both segments are eclipsing revenue levels from 2019, but occupancy remains below 2019 levels, with expectations for recovery by the end of the year [33] Question: Regional performance insights - The U.S. is expected to be at the lower end of the RevPAR growth range, while Europe and Asia-Pacific are showing resilience [39][40] Question: Drivers of fee growth - Fee growth was driven by a mix of managed hotels, strong performance in license fees, and growth in the purchasing business [44] Question: Net unit growth and acquisitions - The company expects net unit growth of 6% to 6.5%, incorporating the impact of recent acquisitions [48] Question: Construction pipeline and financing challenges - The percentage of the pipeline under construction has increased, with challenges in labor and raw material costs remaining, but financing conditions are improving [52] Question: Impact of the Olympics on results - Management did not provide specific details on the anticipated impact of the Olympics on overall results [72]

Core Insights - Hilton Worldwide Holdings Inc. reported revenue of $2.57 billion for the quarter ended March 2024, reflecting a 12.2% increase year-over-year and an EPS of $1.53, up from $1.24 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.67%, while the EPS surpassed the consensus estimate by 8.51% [1] Financial Performance Metrics - Revenue per available room (RevPAR) was $104.16, below the estimated $107.60 [2] - System-wide RevPAR growth was 2%, compared to the estimated 3.7% [2] - Total system-wide rooms reached 1,197,329, slightly above the estimated 1,194,751 [2] - Total managed rooms were 253,319, exceeding the estimate of 250,538 [2] - Total owned/leased rooms were 17,492, compared to the estimate of 17,378 [2] - Total franchised rooms were 926,518, above the estimated 922,259 [2] Revenue Breakdown - Revenues from owned and leased hotels were $255 million, below the estimate of $279.44 million, but showed a 2.8% increase year-over-year [2] - Other revenues amounted to $50 million, exceeding the estimate of $41.92 million, representing a 42.9% year-over-year increase [2] - Incentive management fees were $70 million, slightly below the estimate of $70.94 million, with a 7.7% year-over-year increase [2] - Franchise and licensing fees totaled $571 million, below the estimate of $579.58 million, but showed a 12.4% year-over-year increase [2] - Base and other management fees were $106 million, exceeding the estimate of $86.66 million, with a 32.5% year-over-year increase [2] - Other revenues from managed and franchised properties were $1.52 billion, above the estimate of $1.49 billion, reflecting a 12.1% year-over-year increase [2] Stock Performance - Hilton Worldwide shares have returned -7.5% over the past month, compared to a -3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, detailing balance sheets, operations, and cash flows, with total assets reaching $15.9 billion and net income at $268 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $15.93 billion, driven by higher cash, while total liabilities rose to $18.75 billion due to increased long-term debt, resulting in a $2.83 billion stockholders' deficit Balance Sheet Summary (in millions) | Balance Sheet Items | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$15,932** | **$15,401** | | Cash and cash equivalents | $1,346 | $800 | | **Total Liabilities** | **$18,749** | **$17,748** | | Long-term debt | $10,135 | $9,157 | | **Total Stockholders' Deficit** | **($2,833)** | **($2,360)** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues for Q1 2024 increased to $2.57 billion from $2.29 billion, with net income attributable to Hilton stockholders rising to $265 million, or $1.04 per diluted share Q1 2024 vs. Q1 2023 Performance (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $2,573 | $2,293 | | Operating Income | $533 | $498 | | Net Income (to Hilton Stockholders) | $265 | $206 | | Diluted EPS | $1.04 | $0.77 | | Dividends per share | $0.15 | $0.15 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to $346 million, investing activities used $27 million, and financing activities provided $238 million, primarily due to $1.2 billion in new debt issuance offset by $666 million in share repurchases Cash Flow Summary (in millions) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $346 | $330 | | Net cash used in investing activities | ($27) | ($85) | | Net cash provided by (used in) financing activities | $238 | ($547) | [Note 2: Acquisitions](index=8&type=section&id=Note%202:%20Acquisitions) Hilton expanded its brand portfolio through acquisitions, signing an agreement to acquire Graduate Hotels for $210 million and completing the acquisition of a controlling interest in Sydell Group's NoMad brand - Signed a purchase agreement to acquire the **Graduate Hotels** brand for **$210 million** in cash, expected to close in Q2 2024[21](index=21&type=chunk) - Completed an all-cash acquisition of a controlling financial interest in the **Sydell Group**, owner of the **NoMad** brand, in April 2024[21](index=21&type=chunk) [Note 6: Debt](index=10&type=section&id=Note%206:%20Debt) Total long-term debt increased to $10.14 billion, following the issuance of $1 billion in new Senior Notes in March 2024, with proceeds used for debt repayment and general corporate purposes - In March 2024, issued **$550 million** of **5.875% Senior Notes due 2029** and **$450 million** of **6.125% Senior Notes due 2032**[33](index=33&type=chunk) - As of March 31, 2024, no amounts were outstanding under the Revolving Credit Facility, which had an available borrowing capacity of **$1,913 million**[32](index=32&type=chunk) [Note 12: Business Segments](index=15&type=section&id=Note%2012:%20Business%20Segments) The Management and Franchise segment remained the primary profitability driver, with operating income increasing to $765 million, while the Ownership segment improved to an operating income of $2 million in Q1 2024 Segment Operating Income (in millions) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Management and franchise | $765 | $667 | | Ownership | $2 | ($7) | | **Total Segment Operating Income** | **$767** | **$660** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 performance to continued travel demand growth, particularly internationally, with system-wide RevPAR up 2.0%, net unit growth of 5.6%, Adjusted EBITDA reaching $750 million, and $662 million returned to shareholders via share repurchases - As of March 31, 2024, Hilton's portfolio included **7,626 properties** with **1,197,329 rooms** in **126 countries and territories**[67](index=67&type=chunk) - The **Hilton Honors** guest loyalty program grew by **18%** year-over-year to **188 million members**[67](index=67&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $268 | $209 | | EBITDA | $532 | $455 | | **Adjusted EBITDA** | **$750** | **$641** | [System Growth and Development Pipeline](index=20&type=section&id=System%20Growth%20and%20Development%20Pipeline) Hilton expanded its fee-based business in Q1 2024 with net additions of 94 hotels and 14,200 rooms, achieving 5.6% net unit growth, while maintaining a robust development pipeline of 3,375 hotels and 472,300 rooms Development Activity - Q1 2024 | Metric | Hotels | Rooms | | :--- | :--- | :--- | | Openings | 106 | 16,800 | | Net Additions | 94 | 14,200 | | **Development Pipeline (End of Period)** | **3,375** | **472,300** | - Of the total rooms in the development pipeline, **229,700** were under construction and **267,900** were located outside of the U.S.[73](index=73&type=chunk) [Hotel Operating Statistics](index=23&type=section&id=Hotel%20Operating%20Statistics) System-wide comparable RevPAR increased by 2.0% in Q1 2024, driven by ADR and occupancy gains, with strong international growth offsetting a slight RevPAR decline in the U.S. Comparable Hotel Operating Statistics by Region (Q1 2024 vs. Q1 2023) | Region | Occupancy Change (pts) | ADR Change (%) | RevPAR Change (%) | | :--- | :--- | :--- | :--- | | **System-wide** | **0.2** | **1.7%** | **2.0%** | | U.S. | (0.6) | 0.5% | (0.4)% | | Americas (ex-U.S.) | 1.4 | 5.0% | 7.3% | | Europe | 3.1 | 4.5% | 9.7% | | MEA | 2.4 | 11.0% | 14.8% | | Asia Pacific | 1.3 | 5.7% | 7.9% | [Revenues Analysis](index=24&type=section&id=Revenues%20Analysis) Franchise and licensing fees increased 12.4% to $571 million, driven by strategic partnerships, while management fees rose 21.4% to $176 million due to RevPAR increases and net managed hotel additions - Franchise and licensing fees increased **12.4%** due to growth in license fees from co-branded credit cards and HGV[89](index=89&type=chunk) - Management fees increased **21.4%**, primarily due to an **8.2% RevPAR increase** at comparable managed hotels and the addition of **31 net managed hotels** since January 2023[91](index=91&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, Hilton held $1.42 billion in cash and $1.91 billion in available credit, having used $662 million for share repurchases and issued $1.0 billion in new Senior Notes to bolster liquidity - Repurchased approximately **3.4 million shares** of common stock for **$662 million** in Q1 2024[108](index=108&type=chunk) - As of March 31, 2024, approximately **$3.1 billion** remained available for share repurchases under the current program[108](index=108&type=chunk) - Total indebtedness was approximately **$10.3 billion** as of March 31, 2024, with no material debt maturing before May 2025[117](index=117&type=chunk)[118](index=118&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks stem from SOFR changes on variable-rate debt and foreign currency fluctuations, partially hedged by derivatives, with no material change from 2023 Form 10-K disclosures - Primary market risks are changes in **one-month SOFR** and **foreign currency exchange rates**[120](index=120&type=chunk) - The company's exposure to market risk has not materially changed from what was previously disclosed in the **2023 Form 10-K**[120](index=120&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2024, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[121](index=121&type=chunk) - There were no material changes in the company's internal control over financial reporting during the most recent fiscal quarter[122](index=122&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings, with management believing adequate reserves are in place and no material adverse effect on financial position or results is expected - The company does not expect the ultimate resolution of pending litigation to have a **material adverse effect** on its financial position or results[124](index=124&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported from the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - No material changes from the risk factors disclosed in the **2023 Form 10-K** were reported as of March 31, 2024[125](index=125&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2024, Hilton repurchased 3,377,029 shares of common stock for approximately $662 million at an average price of $196.17 per share under its stock repurchase program Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | 1,281,038 | $185.26 | | February 2024 | 988,846 | $197.32 | | March 2024 | 1,107,145 | $207.76 | | **Total** | **3,377,029** | **$196.17** | - The stock repurchase program has an authorized total of **$11 billion**, with repurchases allowed through open market purchases or privately-negotiated transactions[127](index=127&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[128](index=128&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[128](index=128&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during Q1 2024 - No director or officer adopted, modified, or terminated a **Rule 10b5-1 trading arrangement** in Q1 2024[129](index=129&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, debt indentures, award agreements, and CEO/CFO certifications - Exhibits filed include the Indenture for the new **5.875%** and **6.125% Senior Notes**, forms of **2024 employee award agreements**, and **Sarbanes-Oxley certifications**[130](index=130&type=chunk)

Financial Performance - Diluted EPS for Q1 2024 was $1.04, and adjusted diluted EPS was $1.53[2] - Net income for Q1 2024 was $268 million, and Adjusted EBITDA was $750 million[2] - Total revenues increased to $2.573 billion in Q1 2024, up 12.2% from $2.293 billion in Q1 2023[23] - Net income attributable to Hilton stockholders rose to $265 million in Q1 2024, compared to $206 million in Q1 2023, a 28.6% increase[23] - Net income attributable to Hilton stockholders increased to $265 million in Q1 2024 from $206 million in Q1 2023[35] - Diluted EPS increased to $1.04 in Q1 2024 from $0.77 in Q1 2023[35] - Adjusted EBITDA increased to $750 million in Q1 2024 from $641 million in Q1 2023[38] - Adjusted EBITDA margin improved to 70.4% in Q1 2024 from 67.8% in Q1 2023[39] - Net income for Q1 2024 increased to $268 million, up from $209 million in Q1 2023, representing a 28.2% year-over-year growth[43] - Adjusted EBITDA for Q1 2024 reached $750 million, compared to $641 million in Q1 2023, a 17% increase[43] - Share-based compensation expense for Q1 2024 was $41 million, up from $33 million in Q1 2023, a 24.2% increase[43] - Depreciation and amortization expenses for Q1 2024 were $36 million, slightly down from $37 million in Q1 2023[43] Development and Expansion - Hilton approved 29,800 new rooms for development in Q1 2024, bringing the total development pipeline to a record 472,300 rooms, a 10% increase from March 31, 2023[2] - Hilton added 16,800 rooms to its system in Q1 2024, resulting in 14,200 net additional rooms and a net unit growth of 5.6%[2] - Hilton announced the planned acquisition of the Graduate Hotels brand, expected to add approximately 35 franchised hotels in Q2 2024[2] - Hilton acquired a controlling financial interest in the Sydell Group, owner of the NoMad brand, marking its entry into the luxury lifestyle space[2] - Total system-wide properties reached 7,626, with 1,197,329 rooms as of March 31, 2024[28] - Total system includes 7,626 properties and 1,197,329 rooms, with the U.S. contributing 5,642 properties and 793,826 rooms[29] RevPAR and ADR Performance - System-wide comparable RevPAR increased 2.0% in Q1 2024 compared to Q1 2023[2] - System-wide RevPAR grew by 2.0% to $104.16 in Q1 2024, driven by a 1.7% increase in ADR to $154.91[26] - Middle East & Africa region showed the strongest RevPAR growth at 14.8%, with ADR increasing by 11.0% to $193.22[26] - Conrad Hotels & Resorts achieved a 14.6% increase in RevPAR to $204.67, supported by a 6.9% rise in ADR to $286.62[26] - Hampton by Hilton experienced a 1.7% decline in RevPAR to $81.93, despite a 0.7% increase in ADR to $123.94[26] - Management and franchise segment RevPAR increased by 1.8% to $103.78, with ADR up 1.6% to $154.36[26] - Ownership segment RevPAR surged by 14.0% to $133.64, driven by a 7.7% increase in ADR to $198.05[26] - Full-year 2024 system-wide RevPAR is projected to increase between 2.0% and 4.0% compared to 2023[2] Capital and Shareholder Returns - Hilton repurchased 3.4 million shares of common stock in Q1 2024, returning $701 million in capital to shareholders[2] - Capital expenditures decreased by 46.0% to $34 million in Q1 2024 compared to $63 million in Q1 2023[32] - Contract acquisition costs decreased by 64.8% to $37 million in Q1 2024 compared to $105 million in Q1 2023[32] Debt and Financial Leverage - Long-term debt increased to $10,173 million as of March 31, 2024, from $9,196 million as of December 31, 2023[42] - Net debt increased to $8,836 million as of March 31, 2024, from $8,392 million as of December 31, 2023[42] - Long-term debt as of March 31, 2024, stood at $10.173 billion, with a net debt to Adjusted EBITDA ratio of 2.8[43] - The company's net debt as of March 31, 2024, was $8.836 billion[43] - Net debt is calculated as long-term debt (including current maturities) minus cash, cash equivalents, and restricted cash, used to evaluate financial leverage[60] - Net debt to Adjusted EBITDA ratio is a non-GAAP measure used to assess indebtedness, frequently compared by analysts and investors[61] - Long-term debt to net income ratio is calculated as long-term debt (including current maturities) divided by net income, providing insights into financial leverage[60] Full-Year Projections - Full-year 2024 net income is projected to be between $1,586 million and $1,621 million, and Adjusted EBITDA is projected to be between $3,375 million and $3,425 million[2] - For the full year 2024, the company forecasts net income between $1.577 billion (low case) and $1.612 billion (high case)[48] - Adjusted EBITDA for 2024 is projected to be between $3.375 billion (low case) and $3.425 billion (high case)[53] - Diluted EPS for Q2 2024 is expected to range from $1.74 (low case) to $1.80 (high case)[47] - The company plans to exclude the effect of the planned acquisition of Graduate Hotels from its 2024 outlook[48] Operational Metrics and Definitions - Occupancy measures the utilization of available capacity, calculated as room nights sold divided by room nights available, used to gauge demand and determine achievable ADR pricing levels[63] - ADR (Average Daily Rate) represents average room price attained, calculated as hotel room revenue divided by room nights sold, providing insights into pricing environment and customer base[64] - RevPAR (Revenue per Available Room) is a key performance indicator, calculated as hotel room revenue divided by room nights available, reflecting occupancy and ADR trends[65] - Occupancy, ADR, and RevPAR metrics are presented on a comparable basis for the three months ended March 31, 2024, using currency-neutral exchange rates[66] - Comparable hotels as of March 31, 2024, totaled 6,347 out of 7,532 hotels in the system, with 1,185 non-comparable hotels including 421 removed due to large-scale capital projects, property damage, or business interruption[62] Non-GAAP Measures and Limitations - Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures with limitations and should not be considered substitutes for GAAP financial performance metrics[60] - The company emphasizes that non-GAAP measures like net debt and Adjusted EBITDA ratios may not be comparable to similarly titled measures of other companies[61]

Core Viewpoint - Hilton Worldwide Holdings Inc. is set to report its first-quarter 2024 results on April 24, with expectations of improved earnings and revenue compared to the previous year [1][2]. Financial Estimates - The Zacks Consensus Estimate for first-quarter earnings is $1.41 per share, reflecting a 13.7% increase from $1.24 in the same quarter last year [2]. - Revenue estimates are approximately $2.6 billion, indicating an 11.5% growth from the prior year's quarter [2]. Factors Influencing Performance - Hilton's revenue growth is anticipated to be driven by steady leisure demand, recovery in business transient and group segments, and expanded partnerships [3]. - The company expects RevPAR growth of 2% to 4% year-over-year, supported by increased occupancy rates and average daily rates [3]. - The introduction of the Hilton for Business initiative, targeting small and medium-sized businesses (SMBs), is expected to positively impact revenue, as SMBs represent about 85% of the business transient mix [4]. Revenue Contributions - Significant contributions are expected from Franchise and licensing fees, Base and other management fees, and Incentive Management Fees, with year-over-year increases projected at 18.7% (to $603.1 million), 3% (to $82.4 million), and 1.6% (to $66 million) respectively [4]. Income and EBITDA Projections - For the first quarter of 2024, Hilton anticipates net income between $340 million and $359 million, with adjusted EBITDA expected to range from $690 million to $710 million [5]. Earnings Prediction Model - The current model indicates that Hilton may not conclusively predict an earnings beat, with an Earnings ESP of -0.17% and a Zacks Rank of 3 (Hold) [7].

Group 1: Travel Industry Insights - The concept of revenge travel may be fading, but consumers still value vacation hours, indicating potential for travel stocks [1] - A Deloitte report suggests a shift in travel preferences, with travelers likely to spend more on in-destination experiences and lodging [1] - Expenditure data shows consumers are still willing to spend, making it a favorable time to consider travel stocks [1] Group 2: Hilton (HLT) - Hilton operates in the lodging industry through management, franchising, ownership, and leasing of hotels and resorts [2] - HLT faces competition from the sharing economy, particularly Airbnb, which may be losing appeal due to negative user experiences [2] - Analysts have a consensus moderate buy rating for HLT with a price target of $213.91, indicating about 8% upside potential [2] Group 3: United Airlines (UAL) - United Airlines is positioned to benefit from a potential increase in travel sentiment, with its stock currently discounted compared to pre-pandemic levels [4][5] - The company has shown strong financial performance, with an average earnings surprise of 31.45% over the last four quarters [5] - Analysts project revenue of $57.39 billion for fiscal 2024, a 6.8% increase from the previous year, with a high-side target of $58.33 billion [5] Group 4: Uber (UBER) - Uber is a major player in the travel sector, expanding beyond ride-sharing into food delivery and shipping [6] - The ride-sharing service offers growth opportunities, especially for travelers in non-English speaking countries [6] - Analysts forecast EPS of $1.28 for the current fiscal year, with projected sales of $40.79 billion, reflecting a growth rate of 16.2% [7]

Group 1: Zacks Premium and Style Scores - Zacks Premium offers various tools for investors to enhance their stock market engagement, including daily updates, access to the Zacks Rank, and Premium stock screens [1] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the next 30 days [2] - Stocks are rated from A to F based on their Style Scores, with A indicating the highest potential for outperformance [2] Group 2: Value, Growth, and Momentum Scores - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales to find attractive investment opportunities [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings and cash flow to identify sustainable growth stocks [3] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate revisions [3] Group 3: VGM Score and Zacks Rank - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection [4] - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [5] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [6] Group 4: Company Spotlight - Hilton Worldwide Holdings Inc. (HLT) - Hilton Worldwide Holdings, a hospitality company, has a development pipeline of nearly 3,274 hotels and approximately 462,400 rooms across 118 countries as of December 31, 2023 [8] - HLT is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B and a Growth Style Score of B, indicating a year-over-year earnings growth forecast of 13.7% for the current fiscal year [8][9] - Recent upward revisions by three analysts have increased the Zacks Consensus Estimate for HLT to $7.06 per share, with an average earnings surprise of 5.1% [9]

Hilton Worldwide Holdings Inc. (HLT) has announced its acquisition of a majority controlling interest in Sydell Group to bolster its luxury lifestyle hotel market presence. This move marks HLT's strategic entry into the flourishing luxury hospitality segment, leveraging Sydell Group's acclaimed NoMad brand. Sydell Group, led by Andrew Zobler, has crafted several successful lifestyle brands, including NoMad, known for its exceptional design and culinary experiences.With Sydell Group overseeing design and bra ...

Hilton Worldwide Holdings Inc. (HLT) unveiled the enhanced Hilton Honors American Express Business Card in collaboration with American Express Company (AXP) . It offers new benefits, including up to $240 annually in statement credits on eligible Hilton purchases.The enhanced card also simplifies the rewards structure, allowing Card Members to earn Hilton Honors Bonus Points wherever they spend. This initiative empowers business owners to utilize their purchases to fund future Hilton stays, backed by America ...