Hilton Q4 Earnings Surpass Estimates, Revenues Rise Y/Y

Core Insights - Hilton Worldwide Holdings Inc. reported strong fourth-quarter 2025 results, with earnings and revenues exceeding expectations and showing year-over-year growth [1][3][10] Financial Performance - Adjusted earnings per share (EPS) for Q4 2025 were $2.08, surpassing the Zacks Consensus Estimate of $2.00, and up from $1.76 in the same quarter last year [3] - Total revenues reached $3.09 billion, exceeding the consensus estimate of $2.99 billion by 3.3% and increasing by 10.9% year-over-year [3] - Adjusted EBITDA for the quarter was $946 million, reflecting a 10.3% increase year-over-year, and also beating the estimate of $928.8 million [6] Revenue Breakdown - Franchise and licensing fees improved to $671 million from $642 million year-over-year, although below the estimate of $718.9 million [4] - Base and other management fees rose to $98 million from $82 million year-over-year, while incentive management fees increased by 17.4% to $101 million [4] - Ownership revenues were $345 million, slightly below the expected $345.6 million [5] Operational Highlights - System-wide comparable RevPAR increased by 0.5% year-over-year on a currency-neutral basis [6] - The company added 190 hotels totaling approximately 26,000 rooms in Q4 2025, achieving a net room growth of about 21,300 rooms [11] - Hilton's development pipeline grew by 37,400 rooms, totaling 520,500 rooms across 3,703 hotels in 129 countries and territories as of December 31, 2025 [13] Future Outlook - For Q1 2026, Hilton anticipates net income between $436 million and $450 million, with adjusted EBITDA expected to be between $875 million and $995 million [15] - Full-year 2026 projections include net income of $1.98-$2.01 billion, adjusted EBITDA of $4 billion to $4.04 billion, and adjusted EPS in the range of $8.65-$8.77 [16] - Management expects system-wide RevPAR to increase by 1-2% year-over-year in 2026 [16] Strategic Developments - Hilton launched a new brand, Apartment Collection by Hilton, expected to add up to 3,000 units to its existing apartment-style accommodations [12] - The company continues to expand its luxury and lifestyle portfolio, with notable openings including the Waldorf Astoria Shanghai Qiantan and several Tapestry Collection properties [11]