Strong Leisure Demand & RevPAR to Aid Hilton (HLT) Q1 Earnings

Core Viewpoint - Hilton Worldwide Holdings Inc. is set to report its first-quarter 2024 results on April 24, with expectations of improved earnings and revenue compared to the previous year [1][2]. Financial Estimates - The Zacks Consensus Estimate for first-quarter earnings is $1.41 per share, reflecting a 13.7% increase from $1.24 in the same quarter last year [2]. - Revenue estimates are approximately $2.6 billion, indicating an 11.5% growth from the prior year's quarter [2]. Factors Influencing Performance - Hilton's revenue growth is anticipated to be driven by steady leisure demand, recovery in business transient and group segments, and expanded partnerships [3]. - The company expects RevPAR growth of 2% to 4% year-over-year, supported by increased occupancy rates and average daily rates [3]. - The introduction of the Hilton for Business initiative, targeting small and medium-sized businesses (SMBs), is expected to positively impact revenue, as SMBs represent about 85% of the business transient mix [4]. Revenue Contributions - Significant contributions are expected from Franchise and licensing fees, Base and other management fees, and Incentive Management Fees, with year-over-year increases projected at 18.7% (to $603.1 million), 3% (to $82.4 million), and 1.6% (to $66 million) respectively [4]. Income and EBITDA Projections - For the first quarter of 2024, Hilton anticipates net income between $340 million and $359 million, with adjusted EBITDA expected to range from $690 million to $710 million [5]. Earnings Prediction Model - The current model indicates that Hilton may not conclusively predict an earnings beat, with an Earnings ESP of -0.17% and a Zacks Rank of 3 (Hold) [7].