This is a a very big moment. I have been running the company 18 years. So I would say for me it's been 18 years in the making.It was one of the things I committed to myself and our company when I got to Hilton is that I was not going to keep kicking the can on the Walter story which has been you know a storied part of New York culture and frankly invented the luxury hotel business as we know it both in the United States and in the world. But over an almost hundred-year life, it didn't get the tender loving ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for the quarter exceeded $1,000,000,000, significantly beating expectations, despite a modestly negative system-wide RevPAR [6][19] - Adjusted EPS also exceeded expectations, with diluted earnings per share adjusted for special items at $2.20 [20] - Year-to-date, the company returned $1,700,000,000 to shareholders through buybacks and dividends, on track to return approximately $3,300,000,000 for the full year [7][26] Business Line Data and Key Metrics Changes - System-wide RevPAR decreased by 50 basis points year-over-year, driven by declines in occupancy and modest rate growth [19] - Leisure transient RevPAR grew by 1%, while business transient RevPAR decreased by 2% due to various factors including government spending declines and broader economic uncertainty [8][19] - Group RevPAR was roughly flat, with favorable trends in company meetings offset by soft convention business [9] Market Data and Key Metrics Changes - U.S. RevPAR decreased by 1.5%, largely due to pressure across business transient and group segments [20] - In the Americas outside the U.S., RevPAR increased by 3.8%, driven by strength in the luxury and lifestyle portfolio [21] - Middle East and Africa region saw a 10.3% increase in RevPAR, while Asia Pacific's RevPAR was up 0.3%, with APAC ex-China increasing by 5.2% [22][23] Company Strategy and Development Direction - The company opened 221 hotels totaling over 26,000 rooms, representing a 52% year-over-year increase, achieving net unit growth of 7.5% [11] - Plans to welcome three new luxury and lifestyle hotels per week in 2025, with a focus on expanding in strategic markets [15] - The company aims for net unit growth solidly within the 6% to 7% range for the full year, supported by a strong development pipeline of over 510,000 rooms [25][63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the intermediate-term outlook, citing a favorable regulatory environment and expected economic growth driven by significant investments across various industries [10][41] - The company anticipates RevPAR growth of flat to up 2% for the full year, with improving trends expected in the fourth quarter [26] - Management noted that the current operating environment is characterized by a thawing of the "wait and see" attitude among corporate clients, indicating potential growth in demand [39][108] Other Important Information - Hilton Honors membership grew to over 226 million, up 16% year-over-year, reflecting the strength of the company's global reach [16] - The company was named the most valuable hotel brand for the tenth consecutive year, highlighting its competitive position in the industry [17] Q&A Session Summary Question: Insights on different segments (leisure, business, group) - Management noted relative strength in leisure and weakness in business transient and group segments, with expectations for a more normalized fourth quarter [28][32] Question: Development trends in China amidst RevPAR declines - Management expects modest declines in China but remains optimistic about long-term development opportunities due to undersupply in the market [48][55] Question: Confidence in net unit growth - Management reinforced confidence in achieving 6% to 7% net unit growth, driven by strong conversion activity and a robust development pipeline [60][63] Question: Momentum in luxury segment and its implications - Management emphasized the importance of luxury and lifestyle brands for overall network effect and loyalty, while acknowledging they won't be the primary source of profitability [66][72] Question: Current environment for conversions and key money usage - Management reported that 33% of deals in the quarter were conversions, with expectations to increase to 40% for the year, while key money usage remains consistent [78][81] Question: Timing of non-RevPAR fees - Management clarified that the timing of termination fees and other non-RevPAR items was largely built into guidance, with some fees coming in earlier than expected [86][87]

Financial Data and Key Metrics Changes - Adjusted EBITDA for the quarter exceeded $1,000,000,000, significantly beating expectations, despite a modestly negative system-wide RevPAR [5][19] - Adjusted EPS also exceeded expectations, with diluted earnings per share adjusted for special items at $2.20 [20] - Year-to-date, the company returned $1,700,000,000 to shareholders through buybacks and dividends, on track to return approximately $3,300,000,000 for the full year [6][25] Business Line Data and Key Metrics Changes - System-wide RevPAR decreased by 50 basis points year-over-year, driven by declines in occupancy and modest rate growth [19][20] - Leisure transient RevPAR grew by 1%, while business transient RevPAR decreased by 2% due to various factors including government spending declines and broader economic uncertainty [7][19] - Group RevPAR was roughly flat, with positive trends in company meetings offset by soft convention business [8][19] Market Data and Key Metrics Changes - U.S. RevPAR decreased by 1.5%, largely due to pressure across business transient and group segments [20] - In the Americas outside the U.S., RevPAR increased by 3.8%, driven by strength in the luxury and lifestyle portfolio [21] - The Middle East and Africa region saw a 10.3% increase in RevPAR, while Asia Pacific's RevPAR was up 0.3%, with a 5.2% increase in APAC ex China [22][23] Company Strategy and Development Direction - The company opened 221 hotels totaling over 26,000 rooms, representing a 52% year-over-year increase, achieving net unit growth of 7.5% [11][24] - Plans to welcome three new luxury and lifestyle hotels per week in 2025 were announced, with a focus on expanding in strategic markets [12][15] - The company aims for net unit growth solidly within the 6% to 7% range for the full year, supported by a robust development pipeline of over 510,000 rooms [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the intermediate-term outlook, citing a favorable regulatory environment and expected economic growth driven by significant investments across various industries [10][41] - The company anticipates RevPAR growth of flat to up 2% for the full year, with improving trends expected in the fourth quarter [9][25] - Management noted that the current operating environment is characterized by a thawing of the "wait and see" attitude among corporate clients, indicating potential for increased demand [32][106] Other Important Information - Hilton Honors membership grew to over 226 million, up 16% year-over-year, reflecting the strength of the company's global reach [16] - The company was named the most valuable hotel brand for the tenth consecutive year, highlighting its competitive positioning [17] - The company continues to focus on conversion-friendly brands, which accounted for over a third of openings in the quarter [13][75] Q&A Session Summary Question: Insights on different segments (leisure, business, group) - Management noted relative strength in leisure and weakness in business transient and group segments, with expectations for a more normalized fourth quarter [28][31] Question: Development trends in China amidst RevPAR declines - Management expects modest declines in China but remains optimistic about long-term growth due to undersupply in the market [46][50] Question: Confidence in net unit growth - Management reinforced confidence in achieving 6% to 7% net unit growth, driven by strong conversion activity and a robust development pipeline [57][60] Question: Momentum in luxury segment and its implications - Management emphasized the importance of luxury and lifestyle brands for overall network effect and customer loyalty, while not being the primary source of profitability [64][70] Question: Current environment for conversions and key money usage - Management reported that 33% of deals in the quarter were conversions, with a disciplined approach to key money usage [74][78] Question: Timing of non-RevPAR fees - Management clarified that the timing of non-RevPAR fees was largely built into guidance, with some fees coming in earlier than expected [80][82]

Core Viewpoint - Hilton Worldwide Holdings Inc. is expected to report second-quarter 2025 results on July 23, with projected earnings per share (EPS) of $2.03, reflecting a 6.3% increase from the previous year [1][8]. Revenue and Earnings Estimates - The consensus estimate for second-quarter revenues is approximately $3.06 billion, indicating a 3.6% rise from the same quarter last year [2]. - The expected growth in management and franchise hotel revenues is 6.5% year over year, reaching $905.6 million, while franchise and licensing fees are projected to increase by 8.1% to $745 million [5]. Factors Influencing Performance - Hilton's second-quarter performance is anticipated to benefit from strong group travel, international development, and growth in non-RevPAR fees [3]. - High-margin management and franchise fees are expected to significantly contribute to revenue, supported by hotel openings and brand conversions [4]. - Growth in Hilton Honors membership and stable performance from small and mid-sized business travel are also likely to enhance results [6]. Challenges and Projections - Despite positive factors, macroeconomic challenges such as cost inflation, foreign currency impacts, and uncertainty in corporate travel may pressure Hilton's bottom line [7]. - The company projects adjusted diluted EPS for the second quarter to be between $1.97 and $2.02 [7]. Earnings Prediction - The model predicts an earnings beat for Hilton, with an Earnings ESP of +2.70% and a Zacks Rank of 3 (Hold) [8][9].

Core Insights - Hilton Worldwide Holdings Inc. has opened its 1,000th luxury and lifestyle hotel globally, marking a significant milestone amid robust growth driven by organic expansion, strategic acquisitions, and brand partnerships [1][8] - The company is focusing on high-margin luxury travel, with nearly 500 additional luxury and lifestyle hotels in the development pipeline, aiming to open over 150 properties in this category by 2025 [2][8] Strategic Brand Initiatives - Hilton has introduced new brands like NoMad and Graduate by Hilton, and formed an exclusive partnership with Small Luxury Hotels of the World (SLH), adding over 100 future luxury and lifestyle hotels to its pipeline in 2025 [3][5] - The NoMad brand plans future openings in Singapore and Detroit, with more than 15 projects globally, while Graduate by Hilton is expanding into U.S. college towns and has international expansion plans [4] Global Expansion - Hilton is aggressively expanding its luxury footprint with upcoming launches including Waldorf Astoria New York and Conrad Athens The Ilisian, among others, aiming to open three luxury and lifestyle hotels per week throughout 2025 [6][8] - The company is also expanding in the Asia-Pacific region, particularly with new Conrad hotels, reflecting growing global demand for upscale offerings [9] Stock Performance - Year to date, Hilton's stock has gained 0.8%, contrasting with a 5.3% decline in the industry, benefiting from strong demand for leisure travel and strategic partnerships [9] - The company has delivered a trailing four-quarter earnings surprise of 30.9% on average, with a year-to-date stock gain of 10.6% [12]