MCLEAN, Virginia—Hilton Worldwide Holdings Inc. reported its fourth quarter and full yr 2024 outcomes. Highlights embody:
- Diluted EPS was $2.06 for the fourth quarter and $6.14 for the total yr, exceeding the excessive finish of steerage
- Diluted EPS, adjusted for particular objects, was $1.76 for the fourth quarter and $7.12 for the total yr, exceeding the excessive finish of steerage
- Web earnings was $505 million for the fourth quarter and $1,539 million for the total yr, exceeding the excessive finish of steerage
- Adjusted EBITDA was $858 million for the fourth quarter and $3,429 million for the total yr, exceeding the excessive finish of steerage
- System-wide comparable RevPAR elevated 3.5 p.c and a couple of.7 p.c, on a foreign money impartial foundation, for the fourth quarter and full yr, respectively, in comparison with the identical durations in 2023, exceeding the excessive finish of steerage
- Authorized 34,200 new rooms for growth through the fourth quarter, bringing its growth pipeline to 498,600 rooms as of Dec. 31, 2024, representing progress of 8 p.c from Dec. 31, 2023
- Added 22,600 rooms to our system within the fourth quarter, leading to 98,400 room openings for the total yr, contributing to web unit progress of seven.3 p.c from Dec. 31, 2023
- Repurchased 3.1 million shares of Hilton widespread inventory through the fourth quarter; bringing whole capital return, together with dividends, to $781 million for the quarter and $3.0 billion for the total yr
- Full yr 2025 system-wide RevPAR is projected to extend between 2.0 p.c and three.0 p.c on a comparable and foreign money impartial foundation in comparison with 2024; full yr web earnings is projected to be between $1,829 million and $1,858 million; full yr Adjusted EBITDA is projected to be between $3,700 million and $3,740 million
- Full yr 2025 capital return is projected to be roughly $3.3 billion
- Web unit progress for 2025 is anticipated to be between 6.0 p.c and seven.0 p.c
Overview
Christopher J. Nassetta, president and CEO of Hilton, mentioned, “We’re happy to report a robust fourth quarter, with each high and backside line outcomes exceeding our expectations. All segments drove RevPAR outperformance, with robust tendencies in leisure occupancy, in addition to continued progress in enterprise transient and group outcomes, and we count on favorable tendencies to proceed into 2025. We additionally delivered the very best variety of approvals, development begins and openings in our historical past in 2024, serving to us obtain web unit progress of seven.3 p.c. With a growth pipeline of almost half one million rooms, we’re assured that we’re properly positioned to ship web unit progress between 6.0 p.c and seven.0 p.c in 2025.”
For the three months ended Dec. 31, 2024, system-wide comparable RevPAR elevated 3.5 p.c in comparison with the identical interval in 2023 resulting from will increase in each occupancy and ADR. Administration and franchise charge revenues elevated 4.8 p.c in comparison with the identical interval in 2023.
For the yr ended Dec. 31, 2024, system-wide comparable RevPAR elevated 2.7 p.c in comparison with the identical interval in 2023 resulting from will increase in each occupancy and ADR. Administration and franchise charge revenues elevated 9.1 p.c in comparison with the identical interval in 2023.
For the three months ended Dec. 31, 2024, diluted EPS was $2.06 and diluted EPS, adjusted for particular objects, was $1.76, in comparison with $0.57 and $1.68, respectively, for the three months ended Dec. 31, 2023. Web earnings and Adjusted EBITDA had been $505 million and $858 million, respectively, for the three months ended Dec. 31, 2024, in comparison with $150 million and $803 million, respectively, for the three months ended Dec. 31, 2023.
For the yr ended Dec. 31, 2024, diluted EPS was $6.14 and diluted EPS, adjusted for particular objects, was $7.12, in comparison with $4.33 and $6.21, respectively, for the yr ended December 31, 2023. Web earnings and Adjusted EBITDA had been $1,539 million and $3,429 million, respectively, for the yr ended December 31, 2024, in comparison with $1,151 million and $3,089 million, respectively, for the yr ended Dec. 31, 2023.
Growth
Within the fourth quarter of 2024, Hilton opened 171 accommodations, totaling 22,600 rooms, leading to 17,200 web room additions. Through the quarter, the corporate continued to broaden its portfolio within the Asia Pacific market, surpassing 1,000 accommodations within the area. It opened its first accommodations in Bonaire and Paraguay and now have properties in 140 nations and territories. The corporate additionally added a number of luxurious accommodations to its pipeline within the Center East and Africa area through the quarter. With greater than 500 luxurious accommodations worldwide, Hilton appears to broaden its portfolio in 2025 with the reopening of the Waldorf Astoria New York, together with the openings of Waldorf Astoria Costa Rica Punta Cacique, Waldorf Astoria Shanghai Qiantan, Waldorf Astoria Osaka, Waldorf Astoria Morocco Rabat Sale, Conrad Hamburg and Conrad Athens.
Hilton added 34,200 rooms to the event pipeline through the fourth quarter, and, as of Dec. 31, 2024, its growth pipeline totaled 3,578 accommodations representing 498,600 rooms all through 118 nations and territories, together with 25 nations and territories the place it had no present accommodations. Moreover, of the rooms within the growth pipeline, almost half had been underneath development and greater than half had been positioned outdoors of the US.
Stability Sheet and Liquidity
As of Dec. 31, 2024, Hilton had $11.2 billion of debt excellent, excluding the deduction for deferred financing prices and reductions, with a weighted common rate of interest of 4.77 p.c. Excluding all finance lease liabilities, Hilton had $11.1 billion of debt excellent with a weighted common rate of interest of 4.76 p.c and no scheduled maturities till April 2027, aside from $500 million of excellent Senior Notes due Might 2025. The corporate believes that it has ample sources of liquidity and entry to debt financing to deal with the Senior Notes due Might 2025 at or previous to their maturity date in addition to all indebtedness that turns into due thereafter. As of Dec. 31, 2024, no quantities had been excellent underneath the $2.0 billion senior secured revolving credit score facility, which had an accessible borrowing capability of $1,910 million after contemplating $90 million of excellent letters of credit score. Whole money and money equivalents had been $1,376 million as of Dec. 31, 2024, together with $75 million of restricted money and money equivalents.
In December 2024, Hilton paid a quarterly money dividend of $0.15 per share of widespread inventory, for a complete of $37 million, bringing whole dividend funds for the yr to $150 million. In February 2025, its board of administrators approved a daily quarterly money dividend of $0.15 per share of widespread inventory to be paid on March 28, 2025 to holders of document of widespread inventory as of the shut of enterprise on Feb. 21, 2025.
Through the three months ended Dec. 31, 2024, the corporate repurchased 3.1 million shares of Hilton widespread inventory at a mean value per share of $244.74, for a complete of $744 million. For the yr ended Dec. 31, 2024, it repurchased 13.3 million shares of Hilton widespread inventory at a mean value per share of $215.09, returning $3.0 billion of capital to shareholders, together with dividends. In November 2024, the board of administrators approved an extra $3.5 billion for share repurchases underneath the inventory repurchase program. The quantity approved remaining underneath our inventory repurchase program as of Dec. 31, 2024 was roughly $4.4 billion. The variety of shares excellent as of January 31, 2025 was 240.6 million.
Outlook
Share-based metrics in Hilton’s outlook embody precise share repurchases by means of Dec. 31, 2024, however don’t embody the impact of potential share repurchases thereafter.
Full 12 months 2025
- System-wide comparable RevPAR, on a foreign money impartial foundation, is projected to extend between 2.0 p.c and three.0 p.c in comparison with 2024.
- Diluted EPS is projected to be between $7.45 and $7.56.
- Diluted EPS, adjusted for particular objects, is projected to be between $7.71 and $7.82.
- Web earnings is projected to be between $1,829 million and $1,858 million.
- Adjusted EBITDA is projected to be between $3,700 million and $3,740 million.
- Contract acquisition prices and capital expenditures, excluding quantities reimbursed by third events, are projected to be between $250 million and $300 million.
- Capital return is projected to be roughly $3.3 billion.
- Common and administrative bills are projected to be between $420 million and $430 million.
- Web unit progress is projected to be between 6.0 p.c and seven.0 p.c.
First Quarter 2025
- System-wide comparable RevPAR, on a foreign money impartial foundation, is projected to extend between 2.5 p.c and three.5 p.c in comparison with the primary quarter of 2024.
- Diluted EPS is projected to be between $1.52 and $1.58.
- Diluted EPS, adjusted for particular objects, is projected to be between $1.57 and $1.63.
- Web earnings is projected to be between $373 million and $388 million.
- Adjusted EBITDA is projected to be between $770 million and $790 million.
