Hilton(US:HLT)2025-02-06 11:02Financial 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]