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]

Core Insights - Grubhub and Hilton are expanding their partnership to provide on-demand food and grocery delivery to over 2,600 hotels under the Hampton by Hilton, Tru by Hilton, and Spark by Hilton brands, enhancing guest convenience [1][2][3] - The partnership allows guests to access Grubhub's Marketplace of over 375,000 merchants by scanning a QR code, and includes a promotional offer of one free month of Grubhub+ for additional benefits [1][2] - The success of Grubhub Onsite at Homewood Suites and Home2 Suites, where orders have more than doubled since its launch in 2023, indicates strong demand for this service among hotel guests [2][3] Company Overview - Grubhub is a leading U.S. food ordering and delivery marketplace, featuring over 365,000 restaurant partners across more than 4,000 U.S. cities [5] - Hilton operates over 8,300 properties with more than 1.25 million rooms in 138 countries, recognized for its hospitality and innovative technology enhancements [6] - Hampton by Hilton, Tru by Hilton, and Spark by Hilton are part of Hilton's portfolio, focusing on quality accommodations and value for guests [7][9][10]

Core Viewpoint - Hilton Worldwide Holdings Inc. has been experiencing significant growth in earnings and an expanding price-to-earnings (P/E) ratio, leading to its outperformance against the S&P 500 by approximately 15% [1] Group 1 - Hilton's strong earnings growth and P/E expansion are key factors contributing to its recent market performance [1] - The company is favored for a long-term, buy-and-hold investment strategy, particularly for those seeking high-quality earnings [1] - The focus on dividend and income stocks aligns with Hilton's financial performance, making it an attractive option for investors [1]

Core Viewpoint - Hilton Worldwide Holdings Inc. reported strong third-quarter 2024 earnings and revenues that surpassed estimates, driven by improvements in revenue per available room (RevPAR) due to higher occupancy rates and average daily rates (ADR) [2][3]. Financial Performance - Adjusted earnings per share (EPS) for Q3 2024 were $1.92, exceeding the Zacks Consensus Estimate of $1.85, and reflecting a 15% increase from the previous year's adjusted EPS of $1.67 [3]. - Franchise and licensing fees rose 8.6% year-over-year to $698 million, while base and other management fees also increased by 8.6% to $88 million [3][4]. - Adjusted EBITDA for the quarter was $904 million, an 8.4% year-over-year increase, surpassing the estimated $878.5 million [5]. Revenue Metrics - System-wide comparable RevPAR grew 1.4% year-over-year on a currency-neutral basis, attributed to increased occupancy and ADR [5]. - Owned and leased hotels' revenues decreased by 1.5% year-over-year to $330 million [4]. Balance Sheet and Shareholder Returns - As of September 30, 2024, cash and cash equivalents increased to $1,580 million from $731 million in the prior quarter, while long-term debt rose to $11.2 billion from $10.2 billion [6]. - Hilton repurchased 3.3 million shares worth approximately $764 million and declared a quarterly cash dividend of 15 cents per share [7]. Business Expansion - In Q3 2024, Hilton opened 531 new hotels, achieving a net room growth of 33,600 [8]. - The development pipeline includes nearly 3,525 hotels with almost 492,400 rooms across 120 countries, with expectations for net unit growth of 7-7.5% in 2024 [11]. Future Outlook - For Q4 2024, Hilton anticipates net income between $371-$395 million and adjusted EBITDA between $804 million and $834 million, with expected EPS between $1.57 and $1.67 [12]. - The company revised its 2024 net income estimate to $1,405-$1,429 million, down from a previous estimate of $1,532-$1,555 million, and adjusted EBITDA is expected to be between $3,375 million and $3,405 million [13]. - System-wide RevPAR growth for 2024 is now expected to be 2-2.5%, down from the prior estimate of 2-3% [14].

Core Insights - Hilton Worldwide Holdings Inc. has signed a strategic licensing agreement with Olive by Embassy to introduce 150 Spark by Hilton hotels in India, marking its first entry into the Asia-Pacific region [1] - This partnership aims to address the growing demand for premium economy accommodations in India's rapidly expanding hospitality market [1][5] Expansion Strategy - The agreement extends Hilton's existing partnership with The Embassy Group, which has previously delivered notable properties such as Hilton Bengaluru Embassy Manyata Business Park [2] - Spark by Hilton is designed to meet the needs of value-conscious travelers by providing high-quality, affordable stays [2][3] Brand Development - Launched in 2023, Spark by Hilton focuses on essentials with reliability and simplicity, featuring multi-functional public spaces, complimentary breakfast with local delicacies, and 24-hour retail options [3] - The brand is positioned to cater to India's growing middle class and the increase in both domestic and international travel, aiming to redefine the premium economy segment [3] Broader Market Presence - Hilton's expansion in South Asia includes new luxury and full-service offerings such as Waldorf Astoria Jaipur, Conrad Jaipur, and Hilton Garden Inn Surat, showcasing its ability to scale in Tier II and III cities [4] - The company's strategic initiatives highlight its commitment to meeting diverse guest preferences across the region [4] Investment Potential - Hilton's strategic moves in India indicate strong growth potential, with an innovative brand portfolio and rising demand for reliable accommodations presenting a compelling case for long-term value [5] - As Hilton strengthens its leadership in South Asia, its efforts are expected to yield robust returns, making the stock an attractive investment opportunity [5] Performance Metrics - Hilton's shares have increased by 15.4% over the past three months, compared to the industry's growth of 18.9% [6]

Group 1 - Hilton Worldwide (NYSE: HLT) shares have increased by 57% over the past year, indicating strong performance [1] - Despite the overall gain, shares declined by over 2% on Wednesday due to Q3 earnings and disappointing guidance [1] Group 2 - The article does not provide specific financial metrics or detailed analysis of the Q3 earnings report or guidance [1]

Financial Data and Key Metrics Changes - Third quarter adjusted EBITDA was $904 million, up 8% year-over-year, exceeding the high end of guidance [12] - Adjusted EPS for the quarter was $1.92, reflecting strong bottom line performance despite softer RevPAR [4][12] - System-wide RevPAR increased 1.4% year-over-year, below guidance due to various factors including weather impacts and labor disputes [5][12] Business Line Data and Key Metrics Changes - Business transient RevPAR increased by 2%, with growth across large corporates and small to medium-sized businesses [5] - Group RevPAR grew more than 5% year-over-year, driven by strong demand for corporate and social meetings [5] - Leisure transient RevPAR increased nearly 2%, primarily due to solid trends in Continental Europe [6] Market Data and Key Metrics Changes - Comparable US RevPAR was up 1%, driven by strong group performance [12] - In the Americas outside the US, RevPAR increased 4% year-over-year, particularly in urban markets like Mexico [12] - Europe saw a 7% increase in RevPAR, aided by key summer events [13] - Asia-Pacific region experienced a 3% decline in RevPAR, with China specifically down 9% due to various disruptions [13] Company Strategy and Development Direction - The company opened a record 531 hotels in the quarter, achieving the highest net unit growth in history at 7.8% [7] - The development pipeline expanded to over 492,000 rooms, up 8% year-over-year, with approximately half under construction [10][12] - The company continues to focus on expanding its lifestyle portfolio and luxury offerings, including the introduction of new brands in various international markets [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, expecting RevPAR growth in line with the third quarter for the fourth quarter [6][7] - The outlook for 2025 suggests a similar performance to 2024, with expectations of continued growth in group and business transient segments [20][24] - Management noted that the macroeconomic environment remains strong, with low recession risks and positive growth anticipated [19][20] Other Important Information - The company paid a cash dividend of $0.15 per share during the third quarter, totaling $37 million, and expects to return approximately $3 billion to shareholders for the full year [15] - The company achieved a milestone of 200 million Hilton Honors members, enhancing guest loyalty [5] Q&A Session All Questions and Answers Question: What is the difference in expectations for 2025 compared to earlier guidance? - Management indicated that it is early to provide specific guidance for 2025 but expressed a strong view of positive economic growth and similar performance to 2024 [18][20] Question: Can you elaborate on the development expectations for next year? - Management feels confident about the 6% to 7% net unit growth, with a significant portion expected from conversions [28][30] Question: How does the pipeline of construction compare to existing fee-per-room mix? - There has been no significant change in the fee-per-room mix, and the development environment is starting to improve [32][33] Question: What is driving the continued strength in group bookings? - The strength is attributed to a mix of citywide conventions, social group business, and corporate meetings, all showing strong demand [50][51] Question: How is the early traction for Small Luxury Hotels of the World (SLH)? - Early data indicates strong engagement and healthy redemption rates for SLH properties, with expectations for growth as the relationship matures [57]

Core Viewpoint - Hilton Worldwide Holdings Inc. reported strong third-quarter 2024 results with earnings and revenues exceeding expectations, but the stock price fell due to lowered guidance for net income and RevPAR for 2024 [1][6]. Financial Performance - Adjusted earnings per share (EPS) for Q3 2024 were $1.92, surpassing the Zacks Consensus Estimate of $1.85, and increased by 15% from $1.67 in the same quarter last year [2]. - Total revenues for the quarter reached $2,867 million, slightly above the consensus estimate of $2,866 million, marking a year-over-year increase of 7.3% [2]. - Franchise and licensing fees rose by 8.6% to $698 million, while base and other management fees also increased by 8.6% to $88 million [2]. - Adjusted EBITDA for Q3 was $904 million, reflecting an 8.4% year-over-year growth, exceeding the estimated $878.5 million [3]. Revenue Metrics - System-wide comparable RevPAR grew by 1.4% year-over-year on a currency-neutral basis, driven by higher occupancy and average daily rates (ADR) [3]. - Owned and leased hotels' revenues decreased by 1.5% year-over-year to $330 million, below the estimated $368.1 million [2]. Balance Sheet and Shareholder Returns - As of September 30, 2024, cash and cash equivalents increased to $1,580 million from $731 million in the previous quarter [4]. - Long-term debt rose to $11.2 billion from $10.2 billion, with a weighted average interest rate of 4.84% [4]. - The company repurchased 3.3 million shares for approximately $764 million and declared a quarterly cash dividend of 15 cents per share [4]. Business Expansion - Hilton opened 531 new hotels in Q3 2024, achieving a net room growth of 33,600 [5]. - The company expanded its portfolio with the addition of SLH properties, increasing its presence in 10 more countries and territories [5]. - The development pipeline includes nearly 3,525 hotels with approximately 492,400 rooms across 120 countries and territories [5]. Future Outlook - For Q4 2024, Hilton expects net income between $371 million and $395 million, with adjusted EBITDA projected between $804 million and $834 million [6]. - The company revised its 2024 net income estimate to a range of $1,405 million to $1,429 million, down from the previous estimate of $1,532 million to $1,555 million [6][7]. - System-wide RevPAR growth for 2024 is now anticipated to be 2-2.5%, reduced from the earlier estimate of 2-3% [7].

Hilton Worldwide Holdings Inc. (HLT) reported $2.87 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 7.3%. EPS of $1.92 for the same period compares to $1.67 a year ago.The reported revenue represents a surprise of +0.02% over the Zacks Consensus Estimate of $2.87 billion. With the consensus EPS estimate being $1.85, the EPS surprise was +3.78%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they co ...