Financial Data and Key Metrics Changes - Adjusted EBITDA grew 9% on a comparable basis and adjusted EPS increased 20% [5][21] - Global RevPAR grew 2% in constant currency, with U.S. RevPAR starting strong but softening in February and March [6][8] - Free cash flow was $80 million, converting from adjusted EBITDA at approximately 55% [22] - The company returned nearly $110 million to shareholders through share repurchases and dividends [6][22] Business Line Data and Key Metrics Changes - Fee-related and other revenues increased by $12 million year over year, driven by a 9% increase in royalties and franchise fees [21] - Ancillary revenue growth was primarily driven by higher credit card and partnership fees [21][18] - The company opened 15,000 rooms, a 13% increase from the previous year, and signed 6% more deals than a year ago [14][15] Market Data and Key Metrics Changes - Latin America RevPAR grew by 25% excluding Argentina's hyperinflation, while EMEA RevPAR rose 6% [7] - International RevPAR grew in all regions except China, where it declined by 8% year over year [7] - U.S. RevPAR is expected to decline about 3% for the remainder of the year based on recent trends [24][42] Company Strategy and Development Direction - The company focuses on growing its system and supporting franchisees, with a strategic emphasis on higher fee par hotels [12][17] - The development pipeline reached a record 254,000 rooms, with a significant increase in net room growth across all regions [14][15] - The company is prioritizing development in higher RevPAR markets and is selective about capital deployment [72][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their business model during economic downturns, citing historical outperformance [10][11] - The outlook for 2025 has been refined to reflect a more cautious view of industry-wide RevPAR performance, with expectations ranging from down 2% to up 1% [24][25] - Management noted that consumer sentiment is currently weighing on leisure occupancy, but there are signs of positive momentum as summer approaches [41][42] Other Important Information - The company was named one of the world's most ethical companies for the third consecutive year [19] - The company continues to invest in technology innovations to enhance service and operational efficiency [109] Q&A Session Summary Question: Can you elaborate on the changes in the U.S. RevPAR outlook? - Management noted that normalized April demand improved, with RevPAR running about a full point ahead of the prior year, indicating potential for a positive summer [35][36] Question: What is the long-term outlook for net room growth? - Management reaffirmed a long-term net room growth outlook of 3% to 5%, with a record first quarter in room openings and strong signings [47][49] Question: How is the company managing development costs amid rising prices? - Management highlighted efforts to shift sourcing closer to home and negotiate with suppliers to mitigate cost increases, particularly in construction materials [61][62] Question: What is the outlook for ancillary revenue growth? - Management continues to expect low teen growth for ancillary revenues, driven by contract-based income and a strong co-branded credit card program [92][94] Question: How is the company addressing infrastructure demand? - Management reported a steady demand for infrastructure-related travel, with expectations for continued growth driven by federal spending on infrastructure projects [100][102]

Core Insights - Wyndham Hotels & Resorts reported strong first-quarter results for 2025, achieving record openings and a robust development pipeline despite macroeconomic uncertainties [1][2][3] - The company’s asset-light, franchise-only business model has shown resilience during economic downturns, positioning it for long-term shareholder value [1] System Size and Development - As of March 31, 2025, Wyndham's global system comprised 907,200 rooms, reflecting a 4% year-over-year growth [2] - The U.S. system grew to 502,600 rooms, a 1% increase, while international rooms reached 404,600, a 7% increase [2][31] - The development pipeline included approximately 2,140 hotels and 254,000 rooms, marking a 5% year-over-year increase [3][6] Revenue Performance - Global RevPAR increased by 2% in constant currency, with U.S. RevPAR at $42.37 (up 2%) and international RevPAR at $28.73 (up 3%) [3][5] - Fee-related and other revenues grew by 4% year-over-year to $316 million, driven by higher royalties and franchise fees [15][25] Financial Results - Net income for the first quarter was $61 million, compared to $16 million in the prior year, with adjusted net income increasing by 5% to $67 million [15][25] - Adjusted EBITDA rose by 3% year-over-year to $145 million, reflecting higher fee-related revenues and margin expansion [15][25] - Diluted earnings per share increased to $0.78 from $0.19 in the prior year, with adjusted diluted EPS growing 10% to $0.86 [15][25] Shareholder Returns - The company returned $109 million to shareholders through share repurchases of $76 million and quarterly cash dividends of $0.41 per share [13][15] - During the first quarter, approximately 797,000 shares were repurchased [13] Outlook for 2025 - The company refined its full-year outlook, anticipating a softer RevPAR environment, with global RevPAR growth projected between -2% and 1% [14][39] - The net room growth outlook remains at 3.6% to 4.6% for the full year [16][39]

Core Insights - Hilton Worldwide Holdings Inc. reported first-quarter adjusted earnings per share of $1.72, exceeding the street view of $1.61 [1] - Quarterly sales reached $2.69 billion, which fell short of the analyst consensus estimate of $2.72 billion [1] - Adjusted EBITDA for the first quarter was $795 million, an increase from $750 million a year ago, with an expanded adjusted EBITDA margin of 73.7% compared to 70.4% in the previous year [1] Financial Performance - System-wide comparable RevPAR increased by 2.5% on a currency-neutral basis for the first quarter compared to the same period in 2024 [2] - Quarterly net income margin improved to 11.1% from 10.4% [2] - The company opened 186 hotels, adding a total of 20,100 rooms, resulting in 14,000 net room additions during the first quarter of 2025 [2] Strategic Developments - The company expanded its pipeline of lifestyle properties, introducing the Tempo by Hilton brand in the U.K., marking its first hotel outside the U.S., along with new hotels in Greece and Utah [3] - As of March 31, the company had $11.2 billion in outstanding debt, excluding deferred financing costs and discounts [3] Cash Management - Total cash and equivalents amounted to $807 million as of March 31, 2025, which included $76 million of restricted cash [4] - The firm repurchased 3.7 million shares of common stock during the first quarter, leading to a total capital return of $927 million for the quarter and $1,157 million year-to-date through April [4] - The board of directors authorized a regular quarterly cash dividend of $0.15 per share to be paid on June 27 [4] Future Outlook - Hilton raised its full-year 2025 adjusted EPS guidance to a range of $7.76–$7.94, up from the previous range of $7.71–$7.82, which compares favorably to the $7.93 analyst estimate [5] - For the second quarter, the company expects adjusted EPS between $1.97 and $2.02, which is below the $2.11 estimate [5] - HLT shares were trading lower by 1.30% to $224.27 at the last check on Tuesday [5]