Hilton(HLT) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - System-wide RevPAR increased by 42.5% compared to 2021 and was approximately 1% shy of 2019 levels [6] - Adjusted EBITDA reached $740 million in Q4 2022, up 45$1.59, a 121% increase year-over-year [18] Business Line Data and Key Metrics Changes - Leisure segment RevPAR surpassed 2019 levels by approximately 12%, with rates increasing in the high teens compared to 2019 [8] - Business transient RevPAR improved by 3% versus 2019, with small and medium-sized businesses accounting for roughly 85% of the segment mix [8] - Group segment RevPAR fully recovered to 2019 levels, driven by occupancy and ADR gains [9] Market Data and Key Metrics Changes - U.S. RevPAR grew 20% year-over-year and increased 8% compared to 2019 [18] - In the Americas outside the U.S., RevPAR increased 53% year-over-year and 25% versus 2019 [19] - Europe saw a 67% year-over-year increase in RevPAR, while the Middle East and Africa region experienced a 26% year-over-year increase [20] Company Strategy and Development Direction - The company is focused on capital-light growth, adding nearly a hotel a day, totaling over 58,000 rooms in 2022 [11] - A new brand, Spark by Hilton, was launched to target the premium economy segment, filling a gap in the market [13][14] - The company aims for net unit growth of 5% to 5.5% for 2023, with a strong pipeline of over 416,000 rooms [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength across all segments despite macroeconomic uncertainties [9][30] - The company anticipates a moderate recessionary environment in the second half of the year, which is factored into guidance [32] - There is optimism regarding recovery in international markets, particularly in Asia Pacific, as travel restrictions ease [29] Other Important Information - The company returned over $1.7 billion to shareholders in 2022 through buybacks and dividends [23] - Hilton Honors loyalty program surpassed 150 million members, accounting for approximately 64$1.7 billion to $2.1 billion in 2023 [61][62]