Hilton Worldwide Q4 Earnings Call Highlights

Core Insights - Hilton's fourth-quarter comparable U.S. RevPAR declined by 1.6%, primarily due to the prolonged U.S. government shutdown, while international regions showed stronger growth [1][2] - System-wide RevPAR growth for Hilton was reported at 0.5% year over year on a comparable and currency-neutral basis, with international strength partially offsetting weaker U.S. demand [2][6] - The company is optimistic about improving trends into early 2026, supported by a strong development pipeline and international performance [3][4] Financial Performance - Adjusted EBITDA for Q4 rose approximately 10% to around $946 million, with full-year adjusted EBITDA reaching $3.7 billion, marking a 9% year-over-year increase [5][7] - Hilton returned a record $3.3 billion to shareholders in 2025 and anticipates returning about $3.5 billion in 2026 [5][8] - Diluted EPS adjusted for special items was reported at $2.08 for Q4, with guidance for 2026 EPS adjusted for special items expected to be between $8.65 and $8.77 [7][10] Development and Growth - Hilton opened nearly 200 hotels (approximately 26,000 rooms) in Q4, achieving a net unit growth of 6.7% for 2025, with a development pipeline exceeding 520,000 rooms [4][12][13] - Conversions accounted for about 40% of 2025 room openings, with expectations for conversions to remain a significant growth contributor [13][14] - The company launched new brands, including the Apartment Collection by Hilton, aimed at expanding its market presence [15][17] Market Outlook - For 2026, Hilton expects system-wide RevPAR growth of 1% to 2%, with positive trends anticipated from group demand and leisure travel [9][10] - The company highlighted macroeconomic factors such as easing inflation and a favorable regulatory environment that could support stronger performance in 2026 compared to 2025 [11] - Group demand is expected to outperform, with stable booking windows and a mid-single-digit increase in group position system-wide [20]