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Hilton(HLT) - 2024 Q1 - Quarterly Results
HLTHilton(HLT)2024-04-24 10:02

Financial Performance - Diluted EPS for Q1 2024 was 1.04,andadjusteddilutedEPSwas1.04, and adjusted diluted EPS was 1.53[2] - Net income for Q1 2024 was 268million,andAdjustedEBITDAwas268 million, and Adjusted EBITDA was 750 million[2] - Total revenues increased to 2.573billioninQ12024,up12.22.573 billion in Q1 2024, up 12.2% from 2.293 billion in Q1 2023[23] - Net income attributable to Hilton stockholders rose to 265millioninQ12024,comparedto265 million in Q1 2024, compared to 206 million in Q1 2023, a 28.6% increase[23] - Net income attributable to Hilton stockholders increased to 265millioninQ12024from265 million in Q1 2024 from 206 million in Q1 2023[35] - Diluted EPS increased to 1.04inQ12024from1.04 in Q1 2024 from 0.77 in Q1 2023[35] - Adjusted EBITDA increased to 750millioninQ12024from750 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 268million,upfrom268 million, up from 209 million in Q1 2023, representing a 28.2% year-over-year growth[43] - Adjusted EBITDA for Q1 2024 reached 750million,comparedto750 million, compared to 641 million in Q1 2023, a 17% increase[43] - Share-based compensation expense for Q1 2024 was 41million,upfrom41 million, up from 33 million in Q1 2023, a 24.2% increase[43] - Depreciation and amortization expenses for Q1 2024 were 36million,slightlydownfrom36 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 104.16inQ12024,drivenbya1.7104.16 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]HamptonbyHiltonexperienceda1.7286.62[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]ManagementandfranchisesegmentRevPARincreasedby1.8123.94[26] - Management and franchise segment RevPAR increased by 1.8% to 103.78, with ADR up 1.6% to 154.36[26]OwnershipsegmentRevPARsurgedby14.0154.36[26] - Ownership segment RevPAR surged by 14.0% to 133.64, driven by a 7.7% increase in ADR to 198.05[26]Fullyear2024systemwideRevPARisprojectedtoincreasebetween2.0198.05[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 34millioninQ12024comparedto34 million in Q1 2024 compared to 63 million in Q1 2023[32] - Contract acquisition costs decreased by 64.8% to 37millioninQ12024comparedto37 million in Q1 2024 compared to 105 million in Q1 2023[32] Debt and Financial Leverage - Long-term debt increased to 10,173millionasofMarch31,2024,from10,173 million as of March 31, 2024, from 9,196 million as of December 31, 2023[42] - Net debt increased to 8,836millionasofMarch31,2024,from8,836 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 10.173billion,withanetdebttoAdjustedEBITDAratioof2.8[43]ThecompanysnetdebtasofMarch31,2024,was10.173 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 1,586millionand1,586 million and 1,621 million, and Adjusted EBITDA is projected to be between 3,375millionand3,375 million and 3,425 million[2] - For the full year 2024, the company forecasts net income between 1.577billion(lowcase)and1.577 billion (low case) and 1.612 billion (high case)[48] - Adjusted EBITDA for 2024 is projected to be between 3.375billion(lowcase)and3.375 billion (low case) and 3.425 billion (high case)[53] - Diluted EPS for Q2 2024 is expected to range from 1.74(lowcase)to1.74 (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]