Financial Data and Key Metrics Changes - The company reported system-wide RevPAR growth of 2.5% year over year, driven by strong momentum from the end of the previous year [6] - Adjusted EBITDA was $795 million in the first quarter, up 6% year over year, exceeding the high end of guidance [15] - Diluted earnings per share adjusted for special items was $1.72 [16] Business Line Data and Key Metrics Changes - Group RevPAR increased more than 6% year over year, supported by growth in urban markets and company meetings [6] - Business transient RevPAR increased 2%, primarily from small and medium-sized businesses, which make up roughly 85% of the business transient mix [6] - Leisure transient RevPAR increased 1%, with robust performance in January followed by softening demand patterns [6] Market Data and Key Metrics Changes - In the Americas outside the U.S., first quarter RevPAR increased 7% year over year, driven by key events in Mexico and Brazil [17] - In Europe, RevPAR grew 2.6% year over year, with strong rate and occupancy growth in Continental Europe [18] - In the Asia Pacific region, first quarter RevPAR was flat year over year, with China experiencing a decline of 3.1% [19] Company Strategy and Development Direction - The company continues to expand its development pipeline, ending the quarter with more than 503,000 rooms, representing a 7% year-over-year increase [10] - The luxury and lifestyle categories accounted for 30% of all hotel openings in the quarter, with these portfolios approaching 1,000 hotels globally [9] - The company aims to deliver net unit growth of 6% to 7% in 2025, with nearly half of its pipeline under construction [12] Management's Comments on Operating Environment and Future Outlook - Management noted that broader macro uncertainty intensified in March, impacting demand, particularly in leisure [6] - The company expects second quarter RevPAR to be approximately flat versus the prior year quarter, with full-year expectations of flat to up 2% [7] - Management expressed optimism about long-term opportunities supported by a capital-light business model and favorable megatrends in travel [13] Other Important Information - The company was named the number one best company to work for in the U.S. by Great Place to Work and Fortune for the second consecutive year [13] - A cash dividend of $0.15 per share was paid during the first quarter, with a total expected return of approximately $3.3 billion to shareholders for the year [21][22] Q&A Session Summary Question: Concerns about recessionary environment - Management acknowledged the uncertainty in the market but expressed confidence in the stability of demand patterns and the potential for positive outcomes in the second half of the year [30][36] Question: Development environment amidst uncertainty - Management indicated that while developers are cautious, there has not been a significant impact on current projects, and they remain optimistic about future growth [44][50] Question: Impact of economic downturn on business - Management highlighted the resilience of the business model, emphasizing low leverage and strong access to liquidity, preparing for any potential downturn [56][58] Question: Economic intensity of deals in APAC and China - Management noted that the business in China continues to grow, with a focus on joint ventures and franchising, which allows for capital-light expansion [63][66] Question: Group performance outlook - Management remains optimistic about group performance leading the pack, despite some short-term booking softness due to uncertainty [72][76]

Core Viewpoint - Hilton Worldwide Holdings Inc. reported quarterly earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.61 per share, and showing an increase from $1.53 per share a year ago, indicating a positive earnings surprise of 6.83% [1] Financial Performance - The company posted revenues of $2.7 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.45%, but up from $2.57 billion year-over-year [2] - Over the last four quarters, Hilton has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] Stock Performance - Hilton Worldwide shares have declined approximately 10.3% since the beginning of the year, compared to a 6% decline in the S&P 500 [3] - The current Zacks Rank for Hilton is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $2.13 on revenues of $3.19 billion, and for the current fiscal year, it is $7.86 on revenues of $12.09 billion [7] - The estimate revisions trend for Hilton Worldwide is mixed, which may change following the recent earnings report [6] Industry Context - The Hotels and Motels industry is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Diluted EPS for Q1 2025 was $1.23, with adjusted diluted EPS at $1.72, compared to $1.04 and $1.53 for Q1 2024, respectively [5]. - Net income for Q1 2025 was $300 million, an increase from $268 million in Q1 2024 [5]. - Adjusted EBITDA for Q1 2025 was $795 million, up from $750 million in Q1 2024 [5]. - Full year 2025 net income is projected to be between $1,707 million and $1,749 million [17]. - Full year 2025 Adjusted EBITDA is projected to be between $3,650 million and $3,710 million [17]. - Total revenues reported for Q1 2025 were $2,695 million, up from $2,573 million in Q1 2024, marking a growth of 4.7% [40]. - The net income margin improved to 11.1% in Q1 2025 from 10.4% in Q1 2024 [40]. - For the three months ending June 30, 2025, net income is projected to be between $454 million and $468 million, with diluted EPS expected to range from $1.88 to $1.94 [44]. - The company anticipates net income for the year ending December 31, 2025, to be between $1,702 million and $1,744 million, with diluted EPS ranging from $7.04 to $7.22 [44]. Operational Metrics - System-wide comparable RevPAR increased by 2.5% on a currency neutral basis for Q1 2025 compared to Q1 2024 [2]. - System-wide occupancy rate for Q1 2025 was 66.8%, an increase of 0.4 percentage points compared to Q1 2024 [28]. - Average Daily Rate (ADR) for Q1 2025 was $155.07, reflecting a 1.8% increase from Q1 2024 [28]. - Revenue Per Available Room (RevPAR) for Q1 2025 reached $103.59, up 2.5% year-over-year [28]. - The Middle East & Africa region had the highest occupancy rate at 70.8%, an increase of 2.1 percentage points year-over-year [28]. Development and Expansion - The development pipeline reached 503,400 rooms as of March 31, 2025, representing a 7% growth from the previous year [2]. - A total of 32,600 new rooms were approved for development in Q1 2025, with 186 hotels opened, resulting in 14,000 net room additions [6][7]. - The company has a pipeline of rooms under construction, indicating ongoing expansion efforts in its hotel portfolio [66]. Cash and Debt Management - As of March 31, 2025, total cash and cash equivalents were $807 million, including $76 million of restricted cash [8]. - The company’s net debt as of March 31, 2025, was $10,427 million, compared to $9,860 million at the end of 2024 [42]. - The long-term debt to net income ratio stood at 7.1 as of March 31, 2025 [42]. - Net debt is calculated as long-term debt minus cash and cash equivalents, providing insights into the company's indebtedness and financial leverage [59]. Cost Management - The company reported a decrease in contract acquisition costs, net of refunds, to $30 million in Q1 2025 from $37 million in Q1 2024, a decline of 18.9% [34]. - Total capital expenditures for Q1 2025 amounted to $40 million, a 17.6% increase from $34 million in Q1 2024 [34]. - Special items for the year ending December 31, 2025, include cost reimbursement revenues of $(1,630) million and reimbursed expenses of $1,759 million [44]. Performance Evaluation Metrics - Adjusted EBITDA and Adjusted EBITDA margin are key performance measures used by the company to evaluate operating performance and make decisions, excluding items like interest expense and depreciation that can vary widely across companies [56]. - Occupancy is a critical metric for the company, representing the total number of room nights sold divided by available room nights, which helps gauge demand and determine achievable Average Daily Rate (ADR) pricing levels [62]. - ADR, calculated as hotel room revenue divided by total room nights sold, provides insights into pricing levels and customer base, influencing overall revenues and profitability [63]. - Revenue per Available Room (RevPAR) is a significant performance indicator, calculated by dividing hotel room revenue by total available room nights, correlating with occupancy and ADR [64]. - The company excludes reimbursed revenues and expenses from its operating performance evaluation, as they do not impact net income in the reporting period [57]. - The long-term debt to net income (loss) ratio and net debt to Adjusted EBITDA ratio are non-GAAP measures used to assess financial leverage and are not substitutes for GAAP measures [60].

HLT's earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.1%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Trend in Estimate Revision of HLT The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at $1.61, indicating growth of 5.2% from the $1.53 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $2.71 billion, suggesting growth of 5.2% from the prior-year quarter's re ...

Core Insights - Analysts project Hilton Worldwide Holdings Inc. (HLT) will report quarterly earnings of $1.61 per share, reflecting a year-over-year increase of 5.2% [1] - Revenue is expected to reach $2.71 billion, also representing a 5.2% increase from the same quarter last year [1] Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 0.1%, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Breakdown - Analysts estimate 'Revenues- Other revenues from managed and franchised properties' at $1.61 billion, a 5.8% increase year-over-year [5] - 'Revenues- Owned and leased hotels' are projected at $258.21 million, indicating a 1.3% increase from the prior year [5] - 'Revenues- Other revenues' are expected to reach $55.03 million, reflecting a 10.1% increase year-over-year [6] - 'Revenues- Franchise and licensing fees' are forecasted at $629.00 million, suggesting a 10.2% increase [6] - 'Revenues- Incentive management fees' are estimated at $67.81 million, showing a year-over-year decrease of 3.1% [7] - 'Revenues- Base and other management fees' are projected at $88.41 million, indicating a significant decline of 16.6% from the previous year [7] Property Metrics - Total Owned / Leased Rooms are projected to be 17,109, down from 17,492 in the same quarter last year [8] - Revenue per available room - System-Wide is expected to reach $106.21, compared to $104.16 a year ago [8] - Total Systemwide Rooms are forecasted to be 1,273,692, up from 1,197,329 in the previous year [8] Stock Performance - Over the past month, shares of Hilton Worldwide have returned -5.5%, compared to a -4.8% change in the Zacks S&P 500 composite [9] - Currently, HLT holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [9]

Company Overview - Hilton Worldwide Holdings Inc. (HLT) shares increased by 8.6% to close at $218.65, following a significant volume of trading, contrasting with a 13.2% loss over the previous four weeks [1] - The surge in share price was attributed to President Trump's announcement to suspend U.S. tariffs for 90 days, which renewed investor optimism [1] Earnings Expectations - Hilton is expected to report quarterly earnings of $1.61 per share, reflecting a year-over-year increase of 5.2% [2] - Revenue projections stand at $2.71 billion, also up 5.2% from the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Hilton has been revised 0.6% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a cautious outlook [3] Industry Context - Hilton operates within the Zacks Hotels and Motels industry, where Civeo (CVEO) also resides, having closed 5.7% higher at $20.91, despite a -10.1% return over the past month [3] - Civeo's consensus EPS estimate has changed by +24.4% to -$0.77, representing a significant decline of -196.2% from the previous year [4]

Core Viewpoint - Hilton Worldwide Holdings Inc. (HLT) is trading at a premium compared to its industry peers and the broader market, indicating strong market confidence in its growth potential and financial performance [1][3][19] Valuation Comparison - HLT has a forward 12-month price-to-earnings (P/E) ratio of 27.60X, higher than the Zacks Hotels and Motels industry average of 21.65X, the S&P 500 index at 20.52X, and the Consumer Discretionary sector at 17.62X [1] - Compared to similar companies, HLT's valuation is also premium, with Choice Hotels International, Inc. (CHH) at 18.75X, Marriott International, Inc. (MAR) at 22.61X, and Hilton Grand Vacations Inc. (HGV) at 10.06X [2] Financial Performance - HLT's stock has increased by 7.1% over the past year, while the industry has seen a decline of 0.3% [3] - The company is experiencing growth in revenue per available room (RevPAR), with a 2.7% year-over-year increase in 2024, driven by a 0.8% rise in occupancy and a 1.6% increase in average daily rate [7] Expansion Efforts - Hilton is focused on expanding its global presence, adding 973 hotels and nearly 100,000 rooms in 2024, marking a net unit growth of 7.3%, the largest in its history [9] - The company anticipates a net unit growth of 6-7% for 2025, supported by strong travel demand and ongoing expansion efforts [10] Growth Prospects - For 2025, Hilton expects RevPAR growth between 2% and 3%, with positive outlooks across all major segments, including corporate travel and conventions [10][11] - Analysts project an 11.1% year-over-year growth in earnings per share (EPS) for 2025, reflecting confidence in the company's performance despite its premium valuation [12] Challenges - Macroeconomic challenges, including rising interest rates and limited capital availability, are impacting business operations and growth [13] - Increased costs have affected profitability, with total expenses as a percentage of revenues rising to 78.8% in 2024, primarily due to higher payroll and procurement costs [15]

Core Insights - Hilton Worldwide Holdings (NYSE: HLT) has achieved a total return of approximately 552% since its IPO in 2013, significantly outperforming the S&P 500, which has delivered a total return of about 295% [1] Company Performance - The impressive performance of HLT is notable considering the challenges faced by the global travel industry [1]

Core Insights - Hilton Hotels Corporation (NYSE:HLT) stock is experiencing a pullback, down 3.3% to $238.95, marking its sixth consecutive daily loss, although it maintains a 16.1% year-over-year gain and recently reached a record high of $275.22 on February 13 [1] Group 1: Stock Performance - The stock is near its 126-day moving average, which has historically led to positive returns, with a similar occurrence in the past three years resulting in an average gain of 5.5% one month later [2] - Despite the recent decline, Hilton's stock has been above the 126-day moving average 80% of the time in the past two months and in eight of the last ten trading days [2] Group 2: Options Activity - The 50-day call/put volume ratio for Hilton is 10.16, indicating a significantly bullish sentiment among options traders, ranking higher than 80% of annual readings [3] - In contrast, the brokerage community remains bearish, with 14 out of 23 firms rating Hilton stock as a "hold," suggesting potential for upgrades that could positively impact the stock [3]

Core Insights - Hilton Worldwide Holdings Inc. reported exceptional fourth-quarter 2024 results, with adjusted earnings and total revenues exceeding the Zacks Consensus Estimate and showing year-over-year growth [1][4]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $1.76, beating the consensus estimate of $1.68 by 4.8%, and up from $1.68 in the same quarter last year [4]. - Total revenues reached $2.783 billion, surpassing the consensus mark of $2.748 billion by 1.3% and growing 6.7% year over year [4]. - Franchise and licensing fees improved to $642 million from $601 million, while base and other management fees declined to $82 million from $95 million [4][5]. - System-wide comparable revenue per available room (RevPAR) grew 3.5% year over year, driven by increased occupancy and average daily rate (ADR) [6]. Annual Highlights - For the full year 2024, total revenues were $11.17 billion, up from $10.24 billion in 2023 [7]. - Net income increased to $1.54 billion from $1.15 billion, and adjusted EBITDA rose by 11% to $3.43 billion [7][8]. Balance Sheet and Shareholder Returns - As of December 31, 2024, total cash and cash equivalents were $1.376 billion, up from $875 million at the end of 2023 [10]. - Long-term debt increased to $11.1 billion from $9.1 billion, with no debt maturities until April 2027, except for $500 million due in May 2025 [10]. - The company repurchased 13.3 million shares for $215.09 each and paid $150 million in dividends, totaling $3 billion in shareholder returns [11]. Business Expansion - In Q4 2024, Hilton opened 171 new hotels, adding 22,600 rooms, resulting in a total of 98,400 room openings for the year and a net unit growth of 7.3% [12]. - The development pipeline as of December 31, 2024, included 3,578 hotels representing 498,600 rooms across 118 countries, with expectations for 6-7% net unit growth in 2025 [14]. Future Outlook - For Q1 2025, Hilton anticipates net income between $373-$388 million, adjusted EBITDA of $770-$790 million, and adjusted EPS of $1.57-$1.63 [15][16]. - The company expects system-wide RevPAR to increase by 2.5-3.5% year over year in Q1 2025 and 2-3% for the full year [16][17].