Hilton(HLT) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights Hilton's executive summary highlights strong Q3 2025 financial performance, significant operational milestones, and positive full-year 2025 projections Third Quarter 2025 Financial Highlights Hilton reported strong financial performance for Q3 2025, with significant increases in net income and Adjusted EBITDA, despite a slight decline in system-wide comparable RevPAR Third Quarter 2025 Financial Highlights | Metric | Q3 2025 Value | | :-------------------------------- | :------------ | | Diluted EPS | $1.78 | | Diluted EPS (adjusted for special items) | $2.11 | | Net income | $421 million | | Adjusted EBITDA | $976 million | | System-wide comparable RevPAR (currency neutral) | Declined 1.1% (YoY) | Operational & Strategic Highlights Hilton achieved significant development milestones, including a record development pipeline and the launch of a new lifestyle brand, while continuing capital returns to shareholders - Approved 33,000 new rooms for development, bringing the total development pipeline to a record 515,400 rooms as of September 30, 2025, a 5% increase from September 30, 2024[1] - Added 24,800 rooms to the system, resulting in 23,200 net additional rooms for the quarter, contributing to net unit growth of 6.5% from September 30, 2024[1] - Launched a new lifestyle brand, Outset Collection by Hilton, in October 2025[1] - Reached the 9,000th property milestone with the opening of the Signia by Hilton La Cantera Resort and Spa in October 2025[1] - Repurchased 2.8 million shares of common stock, contributing to a total capital return of $792 million for the quarter and $2,671 million year-to-date through October 2025[1] Full Year 2025 Outlook Highlights Hilton projects continued growth for the full year 2025 across key financial metrics and capital returns Full Year 2025 Outlook Highlights | Metric | Full Year 2025 Projection | | :-------------------------------- | :-------------------------- | | System-wide RevPAR (comparable & currency neutral) | Flat to an increase of 1.0% | | Net income | $1,604 million to $1,625 million | | Adjusted EBITDA | $3,685 million to $3,715 million | | Capital return | Approximately $3.3 billion | Management Commentary & Business Overview This section provides management's perspective on Hilton's Q3 2025 performance, strategic outlook, and detailed financial results for the quarter and nine months CEO Statement CEO Christopher J. Nassetta highlighted the resilience of Hilton's business model and strong bottom-line performance despite softer industry RevPAR, projecting future RevPAR growth and consistent net unit growth - CEO Christopher J. Nassetta noted the resilience of Hilton's business model and strong bottom-line performance despite softer industry RevPAR[3] - Optimistic about future RevPAR growth in the U.S. due to lower interest rates, a favorable regulatory environment, tax policy certainty, significant investment cycles, and limited industry supply growth[3] - Confident in delivering net unit growth between 6.5% and 7.0% in 2025 and 6.0% to 7.0% over the next several years, supported by the quality of the development pipeline, acceleration in new construction starts, brand attractiveness for conversions, and global brand presence growth[3] Third Quarter 2025 Performance Overview For the three months ended September 30, 2025, Hilton experienced a slight decline in system-wide comparable RevPAR but saw increases in management and franchise fee revenues, net income, and Adjusted EBITDA Third Quarter 2025 Performance Overview | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | System-wide comparable RevPAR | -1.1% | N/A | -1.1% | | Management and franchise fee revenues | N/A | N/A | +5.3% | | Diluted EPS | $1.78 | $1.38 | +29.0% | | Diluted EPS (adjusted for special items) | $2.11 | $1.92 | +9.9% | | Net income | $421 million | $344 million | +22.4% | | Adjusted EBITDA | $976 million | $904 million | +8.0% | Nine Months Ended September 30, 2025 Performance Overview For the nine months ended September 30, 2025, Hilton reported positive growth in system-wide comparable RevPAR, management and franchise fee revenues, net income, and Adjusted EBITDA Nine Months Ended September 30, 2025 Performance Overview | Metric | 9M 2025 | 9M 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | System-wide comparable RevPAR | +0.3% | N/A | +0.3% | | Management and franchise fee revenues | N/A | N/A | +6.1% | | Diluted EPS | $4.84 | $4.09 | +18.3% | | Diluted EPS (adjusted for special items) | $6.03 | $5.36 | +12.5% | | Net income | $1,163 million | $1,034 million | +12.5% | | Adjusted EBITDA | $2,779 million | $2,571 million | +8.1% | Development & System Growth This section details Hilton's hotel openings, net room additions, development pipeline, and new brand launches for Q3 2025 Third Quarter 2025 Hotel Openings & Net Room Additions Hilton opened 199 hotels, adding 24,800 rooms and achieving 23,200 net room additions in Q3 2025, with continued expansion in luxury and lifestyle brands globally - Opened 199 hotels, totaling 24,800 rooms, resulting in 23,200 net room additions in Q3 2025[7] - Expanded luxury and lifestyle brands, including the debut of Conrad in Germany (Conrad Hamburg) and Curio Collection in Thailand (KROMO Bangkok)[7] - Signed Canopy by Hilton in Metro Manila, Philippines, and broke ground on Signia by Hilton Savannah[7] - Approved nearly 1,800 rooms across five hotels in Vietnam for Conrad, LXR, DoubleTree, and Hilton brands[7] Development Pipeline Hilton's development pipeline reached a record 515,400 rooms across 128 countries and territories, with nearly half under construction and over half located outside the U.S - Added 33,000 rooms to the development pipeline during Q3 2025[8] - As of September 30, 2025, the development pipeline totaled 3,648 hotels representing 515,400 rooms in 128 countries and territories[8] - Nearly half of the rooms in the pipeline were under construction, and more than half were located outside of the U.S[8] New Brand Launch & Milestones Hilton achieved its 9,000th property milestone and launched a new lifestyle brand, Outset Collection by Hilton, with over 60 hotels already in development - Reached the 9,000th property milestone in October 2025 with the opening of the Signia by Hilton La Cantera Resort and Spa[7] - Announced the launch of a new lifestyle brand, Outset Collection by Hilton, with over 60 hotels in development and bookings expected later this year[7] Balance Sheet & Capital Allocation This section outlines Hilton's debt and liquidity position, along with details on capital returns to shareholders through dividends and share repurchases Debt and Liquidity Position As of September 30, 2025, Hilton had $11.7 billion in debt outstanding with a weighted average interest rate of 4.81%, and no material indebtedness maturing before April 2027, maintaining strong liquidity with $1,126 million in cash and $1,898 million available under its Revolving Credit Facility Debt and Liquidity Position | Metric | As of September 30, 2025 | | :-------------------------------- | :----------------------- | | Debt outstanding (excluding unamortized deferred financing costs and discount) | $11.7 billion | | Weighted average interest rate | 4.81% | | Material indebtedness maturity | No material debt prior to April 2027 | | Total cash and cash equivalents | $1,126 million | | Available borrowing capacity (Revolving Credit Facility) | $1,898 million | - Issued $1.0 billion aggregate principal amount of 5.750% Senior Notes due 2033, using a portion of proceeds to repay $515 million outstanding under the Revolving Credit Facility[10] Capital Returns to Shareholders (Dividends & Share Repurchases) Hilton returned significant capital to shareholders through quarterly dividends and substantial share repurchases during Q3 and year-to-date 2025 - Paid a quarterly cash dividend of $0.15 per share in September 2025, totaling $35 million for the quarter and $108 million year-to-date[11] - Board authorized a regular quarterly cash dividend of $0.15 per share to be paid on December 29, 2025[12] Capital Returns to Shareholders (Dividends & Share Repurchases) | Metric | Q3 2025 | 9M 2025 | | :-------------------------------- | :-------- | :-------- | | Shares repurchased | 2.8 million | 9.7 million | | Average price per share | $270.31 | $248.34 | | Total value of repurchases | $757 million | $2,510 million (including dividends) | | Total capital return (including dividends, YTD through Oct) | N/A | $2,671 million | - Number of shares outstanding as of October 17, 2025, was 232.4 million[14] Outlook This section provides Hilton's financial projections for the full year 2025 and the fourth quarter of 2025, including RevPAR, EPS, net income, and Adjusted EBITDA Full Year 2025 Projections Hilton provides a detailed outlook for the full year 2025, projecting growth in RevPAR, EPS, net income, and Adjusted EBITDA, alongside significant capital returns and net unit growth Full Year 2025 Projections | Metric | Full Year 2025 Projection | | :-------------------------------- | :-------------------------------- | | System-wide comparable RevPAR (currency neutral) | Flat to an increase of 1.0% (vs. 2024) | | Diluted EPS | $6.71 to $6.80 | | Diluted EPS (adjusted for special items) | $7.97 to $8.06 | | Net income | $1,604 million to $1,625 million | | Adjusted EBITDA | $3,685 million to $3,715 million | | Contract acquisition costs and capital expenditures (excluding reimbursements) | $250 million to $300 million | | Capital return | Approximately $3.3 billion | | General and administrative expenses | $410 million to $420 million | | Net unit growth | 6.5% to 7.0% | Fourth Quarter 2025 Projections For the fourth quarter of 2025, Hilton anticipates an increase in system-wide comparable RevPAR and positive financial results across EPS, net income, and Adjusted EBITDA Fourth Quarter 2025 Projections | Metric | Fourth Quarter 2025 Projection | | :-------------------------------- | :-------------------------------- | | System-wide comparable RevPAR (currency neutral) | Increase approximately 1.0% (vs. Q4 2024) | | Diluted EPS | $1.87 to $1.96 | | Diluted EPS (adjusted for special items) | $1.94 to $2.03 | | Net income | $441 million to $462 million | | Adjusted EBITDA | $906 million to $936 million | Conference Call Information Hilton hosted a conference call on October 22, 2025, to discuss third-quarter results, with webcast and telephone replay options available for participants - Conference call held on October 22, 2025, at 9:00 a.m. Eastern Time[18] - Live webcast available on Hilton Investor Relations website (ir.hilton.com/events-and-presentations), with replay and transcript available within 24 hours[18] - Telephone access provided via 1-888-317-6003 (U.S.) or 1-412-317-6061 (international) with conference ID 9229668. Replay available for seven days[19] Forward-Looking Statements & Disclosures This section addresses the nature of forward-looking statements, provides references for definitions, and explains the use of non-GAAP financial measures Forward-Looking Statements This section outlines the nature of forward-looking statements, including projections for business performance and financial results, and highlights various risks and uncertainties that could cause actual outcomes to differ materially from these statements, advising readers to consult the company's 10-K filing for a comprehensive list of risk factors - Contains forward-looking statements regarding business performance, future financial results, liquidity, and capital resources[20][21] - Such statements are subject to various risks and uncertainties, including those inherent to the hospitality industry, macroeconomic factors (inflation, interest rates, labor shortages), competition, and geopolitical events[21] - Refers to 'Part I—Item 1A. Risk Factors' of the Annual Report on Form 10-K for a detailed list of factors that could cause actual results to differ[21] Definitions Reference Refers readers to the 'Definitions' section for explanations of terms used in the press release and its schedules - Directs readers to the 'Definitions' section for clarification of terms used in the press release and schedules[22] Non-GAAP Financial Measures Reference Highlights the use of non-GAAP financial measures such as adjusted net income, adjusted diluted EPS, and Adjusted EBITDA, directing readers to the schedules for additional information and reconciliations to comparable GAAP measures - Mentions the use of non-GAAP financial measures including net income, adjusted for special items; diluted EPS, adjusted for special items; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA ratio[23] - Refers to the schedules and 'Definitions' section for additional information and reconciliations to the most comparable GAAP financial measures[23] About Hilton Hilton is a leading global hospitality company with 25 world-class brands, 9,000 properties, and over 1.3 million rooms in 141 countries, emphasizing its guest loyalty program, Hilton Honors, and industry-leading technology enhancements - Hilton (NYSE: HLT) is a global hospitality company with a portfolio of 25 brands, 9,000 properties, and over 1.3 million rooms in 141 countries and territories[24] - Recognized as the No. 1 World's Best Workplace by Great Place to Work and Fortune, and a global leader on the Dow Jones Sustainability Indices[24] - Offers industry-leading technology enhancements like Digital Key Share and automated complimentary room upgrades[24] - The award-winning Hilton Honors guest loyalty program has over 235 million members[24] Financial Schedules This section presents Hilton's detailed financial statements, operating statistics, property summaries, capital expenditures, and reconciliations of non-GAAP measures Condensed Consolidated Statements of Operations The condensed consolidated statements of operations show Hilton's revenues and expenses for the three and nine months ended September 30, 2025 and 2024, detailing increases in total revenues, operating income, and net income Condensed Consolidated Statements of Operations | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total revenues | $3,120 million | $2,867 million | $8,952 million | $8,391 million | | Total expenses | $2,343 million | $2,242 million | $6,861 million | $6,515 million | | Operating income | $777 million | $623 million | $2,091 million | $1,881 million | | Net income | $421 million | $344 million | $1,163 million | $1,034 million | | Diluted EPS | $1.78 | $1.38 | $4.84 | $4.09 | Comparable and Currency Neutral System-Wide Hotel Operating Statistics This section provides detailed comparable and currency-neutral system-wide hotel operating statistics, including Occupancy, ADR, and RevPAR, broken down by region and brand for both the three and nine months ended September 30, 2025, compared to 2024 Three Months Ended September 30, 2025 vs. 2024 (System-wide) | Metric | 2025 Value | vs. 2024 | | :--------- | :--------- | :------- | | Occupancy | 74.5% | (0.5)% pts. | | ADR | $160.25 | (0.5)% | | RevPAR | $119.33 | (1.1)% | Nine Months Ended September 30, 2025 vs. 2024 (System-wide) | Metric | 2025 Value | vs. 2024 | | :--------- | :--------- | :------- | | Occupancy | 72.0% | (0.1)% pts. | | ADR | $159.90 | 0.4% | | RevPAR | $115.16 | 0.3% | - Middle East & Africa region showed strong RevPAR growth for both three months (+9.9%) and nine months (+9.6%) ended September 30, 2025[30][31] - Waldorf Astoria Hotels & Resorts and LXR Hotels & Resorts demonstrated notable RevPAR growth for the nine months ended September 30, 2025, at 8.8% and 2.8% respectively[31] Property Summary As of September 30, 2025, Hilton's system comprised 8,995 properties and 1,328,821 rooms globally, with a detailed breakdown by brand and region, highlighting the significant portion of franchised/licensed properties Total System as of September 30, 2025 | Category | Properties | Rooms | | :-------------------- | :--------- | :---------- | | Ownership | 46 | 15,287 | | Managed | 858 | 260,164 | | Franchised / Licensed | 8,091 | 1,053,370 | | Total System | 8,995 | 1,328,821 | Total Hotels by Region | Region | Properties | Rooms | | :-------------------- | :--------- | :---------- | | U.S. | 6,145 | 844,453 | | Americas (excluding U.S.) | 494 | 73,554 | | Europe | 880 | 127,658 | | Middle East & Africa | 153 | 38,253 | | Asia Pacific | 1,215 | 225,730 | | Total Hotels | 8,887 | 1,309,648 | - Hampton by Hilton is the largest brand by properties (3,170) and rooms (356,587) within the system[34] Capital Expenditures and Contract Acquisition Costs Hilton's capital expenditures and contract acquisition costs increased for both the three and nine months ended September 30, 2025, driven primarily by higher property and equipment expenditures and contract acquisition costs Three Months Ended September 30 | Category | 2025 (millions) | 2024 (millions) | Change ($) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :--------- | :--------- | | Capital expenditures for property and equipment | $29 | $17 | $12 | 70.6% | | Capitalized software costs | $21 | $30 | ($9) | (30.0)% | | Total capital expenditures | $50 | $47 | $3 | 6.4% | | Contract acquisition costs, net of refunds | $31 | $10 | $21 | NM | | Total capital expenditures and contract acquisition costs | $81 | $57 | $24 | 42.1% | Nine Months Ended September 30 | Category | 2025 (millions) | 2024 (millions) | Change ($) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :--------- | :--------- | | Capital expenditures for property and equipment | $71 | $48 | $23 | 47.9% | | Capitalized software costs | $62 | $71 | ($9) | (12.7)% | | Total capital expenditures | $133 | $119 | $14 | 11.8% | | Contract acquisition costs, net of refunds | $103 | $87 | $16 | 18.4% | | Total capital expenditures and contract acquisition costs | $236 | $206 | $30 | 14.6% | Reconciliations of Non-GAAP Financial Measures This section provides reconciliations of various non-GAAP financial measures to their most comparable GAAP equivalents, including adjusted net income, diluted EPS, Adjusted EBITDA, and net debt ratios, for both historical periods and future outlooks Net Income and Diluted EPS, Adjusted for Special Items Reconciliation shows adjustments for special items, leading to higher adjusted net income and diluted EPS compared to reported GAAP figures for both the three and nine months ended September 30, 2025 and 2024 Three Months Ended September 30 | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net income attributable to Hilton stockholders, as reported | $420 million | $344 million | | Diluted EPS, as reported | $1.78 | $1.38 | | Total special items after taxes | $78 million | $133 million | | Net income, adjusted for special items | $498 million | $477 million | | Diluted EPS, adjusted for special items | $2.11 | $1.92 | Nine Months Ended September 30 | Metric | 2025 | 2024 | | :-------------------------------- | :------- | :------- | | Net income attributable to Hilton stockholders, as reported | $1,160 million | $1,030 million | | Diluted EPS, as reported | $4.84 | $4.09 | | Total special items after taxes | $283 million | $318 million | | Net income, adjusted for special items | $1,443 million | $1,348 million | | Diluted EPS, adjusted for special items | $6.03 | $5.36 | Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation of net income to Adjusted EBITDA, showing an increase in Adjusted EBITDA and Adjusted EBITDA margin for both the three and nine months ended September 30, 2025 Three Months Ended September 30 | Metric | 2025 | 2024 | | :-------------------- | :----- | :----- | | Net income | $421 million | $344 million | | Adjusted EBITDA | $976 million | $904 million | | Net income margin | 13.5% | 12.0% | | Adjusted EBITDA margin | 75.2% | 72.2% | Nine Months Ended September 30 | Metric | 2025 | 2024 | | :-------------------- | :------- | :------- | | Net income | $1,163 million | $1,034 million | | Adjusted EBITDA | $2,779 million | $2,571 million | | Net income margin | 13.0% | 12.3% | | Adjusted EBITDA margin | 74.8% | 71.7% | Net Debt and Net Debt to Adjusted EBITDA Ratio Details Hilton's long-term debt, net debt, and leverage ratios as of September 30, 2025, showing an increase in net debt compared to December 31, 2024 Net Debt and Net Debt to Adjusted EBITDA Ratio | Metric | As of Sep 30, 2025 | As of Dec 31, 2024 | | :-------------------------------- | :----------------- | :----------------- | | Long-term debt, including current maturities | $11,638 million | $11,151 million | | Net debt | $10,600 million | $9,860 million | TTM Ended September 30, 2025 | Metric | Value | | :-------------------------------- | :---- | | Long-term debt to net income ratio | 7.0 | | Net debt to Adjusted EBITDA ratio | 2.9 | Outlook: Net Income and Diluted EPS, Adjusted for Special Items Provides the outlook for net income and diluted EPS, adjusted for special items, for the fourth quarter and full year 2025, indicating expected ranges for these metrics Three Months Ending December 31, 2025 (Outlook) | Metric | Low Case | High Case | | :-------------------------------- | :------- | :-------- | | Net income attributable to Hilton stockholders | $440 million | $461 million | | Diluted EPS | $1.87 | $1.96 | | Net income, adjusted for special items | $458 million | $479 million | | Diluted EPS, adjusted for special items | $1.94 | $2.03 | Year Ending December 31, 2025 (Outlook) | Metric | Low Case | High Case | | :-------------------------------- | :------- | :-------- | | Net income attributable to Hilton stockholders | $1,600 million | $1,621 million | | Diluted EPS | $6.71 | $6.80 | | Net income, adjusted for special items | $1,901 million | $1,922 million | | Diluted EPS, adjusted for special items | $7.97 | $8.06 | Outlook: Net Income and Adjusted EBITDA Presents the outlook for net income and Adjusted EBITDA for the fourth quarter and full year 2025, showing projected ranges for these key financial performance indicators Three Months Ending December 31, 2025 (Outlook) | Metric | Low Case | High Case | | :-------------------- | :------- | :-------- | | Net income | $441 million | $462 million | | Adjusted EBITDA | $906 million | $936 million | Year Ending December 31, 2025 (Outlook) | Metric | Low Case | High Case | | :-------------------- | :------- | :-------- | | Net income | $1,604 million | $1,625 million | | Adjusted EBITDA | $3,685 million | $3,715 million | Definitions This section provides clear definitions for key financial and operational terms used throughout the report, including non-GAAP measures and hotel operating statistics Trailing Twelve Month Financial Information Explains that Trailing Twelve Month (TTM) financial information is a non-GAAP measure calculated by combining the most recent nine months with the prior year's full results minus the prior year's nine months, used to assess recent financial performance and for ongoing planning - TTM information is calculated as the nine months ended September 30, 2025, plus the year ended December 31, 2024, less the nine months ended September 30, 2024[57] - This non-GAAP presentation provides useful information for investors regarding recent financial performance and is used by management for ongoing planning[57] Net Income (Loss), Adjusted for Special Items, and Diluted EPS, Adjusted for Special Items Defines adjusted net income and diluted EPS as non-GAAP measures that exclude special items, used to provide meaningful comparisons of operating results and highlight ongoing operations - Net income (loss), adjusted for special items, is calculated as net income (loss) attributable to Hilton stockholders, plus total special items after taxes[58] - These non-GAAP measures are included to assist investors in performing meaningful comparisons of past, present, and future operating results and to highlight ongoing operations[59] Adjusted EBITDA, Net Income (Loss) Margin and Adjusted EBITDA Margin Defines Adjusted EBITDA as net income excluding interest, taxes, depreciation, amortization, and various non-operating or non-recurring items, also defining net income margin and Adjusted EBITDA margin, emphasizing their use by management and investors to evaluate operating performance and compare companies - Adjusted EBITDA is calculated as net income (loss) excluding interest expense, income tax benefit (expense), depreciation and amortization, and various other gains, losses, revenues, and expenses (e.g., asset dispositions, foreign currency transactions, share-based compensation, cost reimbursement revenues and expenses)[60] - Adjusted EBITDA and Adjusted EBITDA margin are used by management to evaluate operating performance and by securities analysts and investors for industry comparisons, as they exclude items that vary widely across companies[62] - Cost reimbursement revenues and reimbursed expenses are excluded from Adjusted EBITDA as they are not operated to generate profit and have no net effect on net income in the long term[62][63] Net Debt, Long-Term Debt to Net Income (Loss) Ratio and Net Debt to Adjusted EBITDA Ratio Defines net debt as long-term debt minus cash and restricted cash, and explains the calculation of long-term debt to net income ratio and net debt to Adjusted EBITDA ratio, which are non-GAAP measures used to evaluate financial leverage and compare indebtedness across companies - Net debt is calculated as long-term debt (excluding unamortized deferred financing costs and discounts) reduced by cash and cash equivalents and restricted cash and cash equivalents[65] - Long-term debt to net income (loss) ratio and net debt to Adjusted EBITDA ratio are non-GAAP measures used to evaluate financial leverage and compare indebtedness between companies[65][66] Comparable Hotels Defines comparable hotels as those active and operating for at least one full calendar year and open by January 1st of the previous year, excluding hotels with significant changes or unavailable comparable results; as of September 30, 2025, Hilton had 6,339 comparable hotels out of 8,887 total hotels - Comparable hotels are defined as those active and operating in the system for at least one full calendar year and open by January 1st of the previous year[67] - Exclusions include hotels with brand/ownership changes, large-scale capital projects, substantial property damage, business interruption, or strategic partner hotels[67] - As of September 30, 2025, Hilton had 6,339 comparable hotels out of 8,887 total hotels[67] Occupancy Occupancy measures the utilization of available hotel capacity, calculated as room nights sold divided by room nights available, which management uses to gauge demand and determine ADR pricing levels - Occupancy is the total number of room nights sold divided by the total number of room nights available[68] - It measures the utilization of available capacity and helps management gauge demand and determine Average Daily Rate (ADR) pricing levels[68] ADR (Average Daily Rate) ADR represents the average room price, calculated as hotel room revenue divided by room nights sold, providing insights into the pricing environment and customer base, and is a key industry performance measure - ADR is hotel room revenue divided by the total number of room nights sold[69] - It measures the average room price and provides useful information on the pricing environment and customer base[69] RevPAR (Revenue per Available Room) RevPAR is calculated by dividing hotel room revenue by available room nights, serving as a key indicator of performance correlated to occupancy and ADR, and is presented on a comparable and currency-neutral basis - RevPAR is calculated by dividing hotel room revenue by the total number of room nights available[70] - It is a meaningful indicator of performance, correlating to occupancy and ADR, and is useful for measuring performance over comparable periods[70] - References to RevPAR are presented on a comparable and currency-neutral basis, using foreign currency exchange rates for the respective periods[71][72]