Hilton (HLT) Beats Q1 Earnings Estimates, Raises '24 View

Core Viewpoint - Hilton Worldwide Holdings Inc. reported strong first-quarter 2024 results, with earnings and revenues exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2024 were $1.53, surpassing the Zacks Consensus Estimate of $1.41 by 8.5%, and increased 23.4% from $1.24 in the same quarter last year [2]. - Total revenues reached $2.57 billion, exceeding the consensus mark of $2.55 billion, reflecting a 12.2% year-over-year increase [2]. - Franchise and licensing fees improved by 12.4% year over year to $571 million, while base management fees rose 32.5% to $106 million, and incentive management fees increased by 7.7% to $70 million [2]. Revenue Metrics - System-wide comparable revenue per available room (RevPAR) grew by 2% year over year on a currency-neutral basis, driven by higher occupancy and average daily rates (ADR) [4]. - Adjusted EBITDA for the quarter was $750 million, marking a 17% increase year over year [4]. Balance Sheet and Shareholder Returns - As of March 31, 2024, cash and cash equivalents totaled $1.4 billion, up from $875 million in the previous quarter, while long-term debt increased to $10.3 billion from $9.3 billion [5]. - The company repurchased 3.4 million shares worth approximately $662 million and returned $0.7 billion to shareholders through buybacks and dividends [5]. - A quarterly cash dividend of 15 cents per share was declared, payable on June 28, 2024 [5]. Business Development - Hilton opened 106 new hotels in Q1 2024, achieving net unit growth of nearly 14,200 rooms [6]. - The development pipeline includes approximately 3,380 hotels with nearly 472,300 rooms across 119 countries, with expectations for net unit growth of 6-6.5% in 2024 [7]. Future Outlook - For Q2 2024, Hilton anticipates net income between $443-$457 million and adjusted EBITDA between $890 million and $910 million, with EPS projected between $1.80 and $1.86 [8]. - For the full year 2024, net income is estimated to be between $1.58-$1.62 billion, with adjusted EBITDA expected between $3.37 billion and $3.42 billion [9]. - The company forecasts a 2-4% increase in system-wide RevPAR for 2024 [9].