Hilton Stock Up on Q4 Earnings & Revenue Beat, RevPAR Climbs Y/Y

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].