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]

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]

Financial Data and Key Metrics Changes - For the full year 2025, system-wide RevPAR growth was up 40 basis points year over year, with record adjusted EBITDA of $3.7 billion, up 9% year over year [5][6] - In the Fourth Quarter, system-wide RevPAR increased 50 basis points year-over-year, with adjusted EBITDA at $946 million, up 10% year-over-year [6][15] - The company returned $3.3 billion to shareholders in 2025, the highest total capital return in its history [6] Business Line Data and Key Metrics Changes - Leisure transient RevPAR was up 2.3%, while business transient RevPAR was down 2.1% due to U.S. government shutdown impacts [6][15] - Group RevPAR increased by 2.6%, driven by strong international group growth [6][15] - The company opened nearly 200 hotels in the Fourth Quarter, totaling nearly 26,000 rooms, contributing to a full-year net unit growth of 6.7% [7][8] Market Data and Key Metrics Changes - In the Americas outside the U.S., Fourth Quarter RevPAR increased 3.8% year-over-year, while Europe saw a 5.3% increase, and the Middle East and Africa region experienced a 15.9% increase [16][17] - Asia-Pacific region's Fourth Quarter RevPAR was up 9.2% excluding China, while China saw a decline of 1.4% [17] Company Strategy and Development Direction - The company is focused on expanding its brand portfolio, including the launch of the Apartment Collection by Hilton and Outset Collection, targeting the apartment-style lodging segment [10][12] - The pipeline reached over 520,000 rooms, with expectations for sustained net unit growth of 6%-7% for 2026 and beyond [11][17] - The company aims to enhance its Hilton Honors program, making loyalty more accessible and rewarding [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting stronger economic conditions and improved performance in EMEA and APAC regions [7][30] - The CEO highlighted macroeconomic factors such as decreasing inflation and increased investment in technology as positive indicators for future growth [21][25] - Management noted that early 2026 showed positive trends in group bookings and leisure demand, with expectations for RevPAR growth of 1%-2% year-over-year [7][18] Other Important Information - The company was named the number one world's best workplace by Fortune and Great Place to Work for 2025 [13] - The company continues to see strong performance in its luxury and lifestyle brands, with nearly 30% of total openings in the quarter coming from these segments [8][9] Q&A Session Summary Question: Overview of the broader economy and lodging industry - Management expressed optimism about the economy, citing macro and micro forces that are converging positively, including decreasing inflation and a favorable investment environment [21][30] Question: AI and technology partnerships - The company is actively exploring AI applications across its operations and is engaged with major tech players to enhance efficiencies and customer experience [34][41] Question: Growth of lifestyle and luxury brands - Management indicated that as the lifestyle and luxury brands gain scale, they will benefit from network effects, leading to increased market share and profitability [46][49] Question: Development environment and key money usage - The company remains disciplined regarding key money, with a focus on maintaining a competitive edge while managing development costs [53][56] Question: RevPAR guidance and quarterly cadence - Management acknowledged the complexity of the upcoming year but expressed confidence in the guidance range, citing potential upside from events like the World Cup [60][62] Question: EPS growth rate compared to EBITDA growth - Management clarified that EPS growth is impacted by share count and interest expenses, with adjusted EPS growth expected in the low double digits [67][68]

Financial Data and Key Metrics Changes - For the full year 2025, system-wide RevPAR growth was up 40 basis points year over year, with record adjusted EBITDA of $3.7 billion, up 9% year over year [5][6] - In the fourth quarter, system-wide RevPAR increased 50 basis points year-over-year, with adjusted EBITDA at $946 million, up 10% year-over-year [6][15] - The company returned $3.3 billion to shareholders in 2025, the highest total capital return in its history [6] Business Line Data and Key Metrics Changes - Leisure transient RevPAR was up 2.3%, while business transient RevPAR was down 2.1% due to U.S. government shutdown impacts [6][15] - Group RevPAR increased by 2.6%, driven by strong international group growth [6][15] - The company opened nearly 200 hotels in the fourth quarter, totaling nearly 26,000 rooms, and added nearly 100,000 new rooms for the full year, representing a net unit growth of 6.7% [7][8] Market Data and Key Metrics Changes - In the Americas outside the U.S., fourth quarter RevPAR increased 3.8% year-over-year, while Europe saw a 5.3% increase, and the Middle East and Africa region experienced a 15.9% increase [16][17] - Asia-Pacific's fourth quarter RevPAR was up 9.2% excluding China, while RevPAR in China declined 1.4% [17] Company Strategy and Development Direction - The company is focused on expanding its brand portfolio, including the launch of the Apartment Collection by Hilton and the Outset Collection, to capture new market segments [10][12] - The development pipeline reached over 520,000 rooms, with expectations for sustained net unit growth of 6%-7% for 2026 and beyond [11][18] - The company aims to enhance its Hilton Honors program to drive loyalty and engagement, with nearly a quarter billion members [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting stronger economic conditions and improved performance in EMEA and APAC regions [7][30] - The CEO highlighted macroeconomic factors such as decreasing inflation and increased investment in technology as positive indicators for future growth [21][25] - Management noted that early 2026 trends are positive, with strong group bookings and leisure demand [7][30] Other Important Information - The company has been recognized as the number one world's best workplace by Fortune and Great Place to Work for 2025 [13] - The company continues to focus on non-RevPAR-driven fees, which are expected to grow above the algorithm due to strong credit card and timeshare performance [73][74] Q&A Session Summary Question: Overview of the broader economy and lodging industry - Management remains optimistic about 2026, citing macroeconomic improvements and a potential trend towards middle-class real wage growth, which could increase disposable income and spending on travel [21][30] Question: AI and technology partnerships - The company is actively exploring AI applications across its operations, focusing on efficiency and customer experience improvements [34][41] Question: Growth of lifestyle and luxury brands - Management believes that as lifestyle and luxury brands gain scale, they will create a network effect that enhances market share and profitability [46][49] Question: Development environment and key money usage - The company maintains discipline in key money usage, with a focus on upper upscale and luxury segments, while expecting conversions to play a larger role in future growth [55][56] Question: RevPAR guidance and quarterly cadence - Management anticipates a balanced performance throughout the year, with potential upside from events like the World Cup [60][62] Question: EPS growth rate - Management explained that EPS growth is impacted by share count and interest expenses, with adjusted EPS growth expected in the low double digits [67][68]

Financial Data and Key Metrics Changes - For the full year 2025, system-wide RevPAR growth was up 40 basis points year-over-year, with record adjusted EBITDA of $3.7 billion, an increase of 9% year-over-year [4][5] - In Q4 2025, system-wide RevPAR increased by 50 basis points year-over-year, with adjusted EBITDA reaching $946 million, up 10% year-over-year [5][14] - The company returned $3.3 billion to shareholders in 2025, marking the highest total capital return in its history [5] Business Line Data and Key Metrics Changes - Leisure transient RevPAR was up 2.3% in Q4, while business transient RevPAR decreased by 2.1% due to U.S. government shutdown impacts [5][14] - Group RevPAR increased by 2.6% in Q4, driven by strong international group growth [5][14] - For the full year, net unit growth was 6.7%, with nearly 100,000 new rooms added to the global portfolio [7][10] Market Data and Key Metrics Changes - In the Americas outside the U.S., Q4 RevPAR increased by 3.8% year-over-year, while in Europe, it grew by 5.3% due to strong leisure activity [15] - The Middle East and Africa region saw a 15.9% increase in RevPAR, driven by leisure and group demand [15] - In Asia-Pacific, Q4 RevPAR was up 9.2% excluding China, while RevPAR in China declined by 1.4% [15][16] Company Strategy and Development Direction - The company is focused on expanding its brand portfolio, including the launch of the Apartment Collection by Hilton, targeting the apartment-style lodging segment [9] - The development pipeline reached over 520,000 rooms, with expectations for sustained net unit growth of 6%-7% for 2026 and beyond [10] - The company aims to enhance loyalty and guest satisfaction through initiatives like the Hilton Honors program, which now has nearly a quarter billion members [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting stronger economic conditions and improved performance in EMEA and APAC [6][29] - The company anticipates RevPAR growth of 1%-2% for the full year 2026, with positive trends in group bookings and leisure demand [6][17] - Management highlighted macroeconomic factors such as decreasing inflation and increased investment in technology as supportive of future growth [21][25] Other Important Information - The company opened nearly 200 hotels in Q4, totaling nearly 26,000 rooms, and celebrated several milestones in brand expansion [6][7] - The company was named the number one world's best workplace by Fortune for 2025, marking a significant achievement in employee satisfaction [11] Q&A Session Summary Question: Overview of the broader economy and lodging industry - Management noted optimism for 2026, citing macroeconomic improvements and potential for middle-class wage growth, which could increase disposable income and spending [19][26] Question: AI and technology partnerships - Management discussed ongoing efforts in AI, emphasizing a modern tech stack that allows for greater flexibility and efficiency in operations and customer experience [32][34] Question: Growth of lifestyle and luxury brands - Management confirmed that as the network of lifestyle and luxury brands expands, market share and economic performance are expected to improve, creating a positive feedback loop [41][46] Question: Development environment and key money usage - Management indicated a disciplined approach to key money, with a focus on maintaining competitive advantages while navigating market dynamics [51][55] Question: RevPAR guidance and quarterly cadence - Management acknowledged the complexity of the upcoming year but expressed confidence in achieving the guidance range, supported by events like the World Cup [59][60]

Group 1 - Hilton Group plans to open nearly 800 new hotels globally in 2025, adding approximately 100,000 rooms, resulting in a net room growth of 6.7% for the year [1] - The group signed over 1,000 new hotel agreements, totaling around 140,000 rooms, with more than 3,700 hotels currently under construction, representing 20% of the global total [1] - The company launched two new brands, Apartment Collection by Hilton and Outset Collection by Hilton, with plans to add 3,000 apartment rooms in collaboration with Placemakr [1] Group 2 - Hilton's luxury and lifestyle brands added 200 new hotels, surpassing a total of 1,000 globally, with notable openings including Waldorf Astoria hotels in New York, Finland, Japan, and Costa Rica [2] - By 2025, Hilton's global hotel count is expected to exceed 9,000, covering 143 countries and regions, with new market entries in Rwanda and Pakistan [2] - The group served over 233 million guests in the year, bringing the total number of guests served to over 4 billion [2]

Group 1 - The Heid Lofts by Reside has been opened in Philadelphia, expanding the Wyndham-Reside partnership's portfolio of apartment-style accommodations [3][8] - The property features 96 apartment-style units equipped with full kitchens and in-suite laundry, catering to the growing demand for extended stay accommodations [8] - The partnership aims to accelerate market entry and strengthen operational performance in the extended-stay and short-term rental markets [5] Group 2 - Reside is focusing on expansion into major U.S. gateway cities, with upcoming locations planned in Los Angeles, Chicago, Denver, and Cleveland [5] - Other hotel companies, such as Hilton and Marriott, are also expanding in the apartment-style accommodation segment, indicating a competitive market landscape [6][7] - The Heid Lofts represents a strategic addition to Wyndham's residential hospitality portfolio, responding to increasing consumer demand for home-style stays [8]

Core Viewpoint - Hilton is launching a new lodging category called Apartment Collection by Hilton, which will offer unique, spacious furnished apartments, expected to be available for booking in the first half of 2026 [1][5]. Group 1: Partnership and Growth - The partnership with Placemakr will add up to 3,000 new apartment-style units to Hilton's existing inventory of approximately 10,000 units, with plans for significant growth in the apartment-style segment through additional franchise agreements [2][4]. - Placemakr brings expertise in the furnished apartment sector, leveraging its operational model to convert multi-family properties into furnished short-term rentals, which aligns with Hilton's growth strategy in this expanding market [4][8]. Group 2: Product Offering - Apartment Collection by Hilton will feature a range of furnished apartments from studio to four-bedroom units, designed for various stay occasions, including family getaways and extended business trips [3][6]. - Each property will include chef-ready kitchens, spacious living areas, on-site laundry, and access to amenities such as fitness centers and communal spaces, enhancing the guest experience [3][6]. Group 3: Brand Integration and Loyalty - The new brand will maintain Hilton's trusted quality standards and will be integrated into Hilton's booking and loyalty systems, allowing guests to earn and redeem Hilton Honors Points [5][8]. - The Apartment Collection will be available in key urban destinations, including New York City, Washington, D.C., and Atlanta, ensuring guests have access to sought-after locations [5][6].