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Hilton Worldwide Holdings (HLT)
NYSE:HLT
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Hilton Worldwide Holdings
(NYSE:HLT)
73Outperform
Positive Factors
Business Model Resilience
The resilience of the asset-light business model is once again on show, as Hilton is trimming its EBITDA estimate by just 1% and was even able to raise its EPS outlook.
Earnings
Hilton's results were ahead of estimates in Q1 and guidance was ahead on both adjusted EPS and EBITDA.
Negative Factors
Macroeconomic Concerns
Hilton has higher dependency on business travelers to drive demand, which is generally more volatile and dependent on macroeconomic conditions.
RevPAR Expectations
Hilton lowered RevPAR to +1% at the midpoint from +2.5%, which was in-line with expectations.
Hilton Worldwide Holdings (HLT) vs. S&P 500 (SPY)
Market Cap
$60.80B
Dividend Yield0.23%
Average Volume (3M)2.72M
Price to Earnings (P/E)40.3
Beta (1Y)0.92
Revenue Growth7.43%
EPS Growth38.52%
CountryUS
Employees181,000
SectorConsumer Cyclical
Sector Strength74
IndustryTravel Lodging
Share Statistics
EPS (TTM)1.72
Shares Outstanding237,699,740
10 Day Avg. Volume1,893,337
30 Day Avg. Volume2,719,518
Financial Highlights & Ratios
PEG Ratio11.70
Price to Book (P/B)-13.49
Price to Sales (P/S)0.00
P/FCF Ratio30.16
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue1.56
Enterprise Value/Gross Profit22.74
Enterprise Value/Ebitda6.88
Forecast
1Y Price Target
$243.82Price Target Upside-4.67% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Hilton Worldwide Holdings Business Overview & Revenue Model
Company DescriptionHilton Worldwide Holdings Inc. is a leading global hospitality company, spanning the lodging sector with a diverse portfolio of 18 world-class brands, including Hilton Hotels & Resorts, Waldorf Astoria, Conrad, and DoubleTree, among others. The company operates, leases, and franchises hotels and resorts, offering accommodations, amenities, and services to business and leisure travelers across six continents.
How the Company Makes MoneyHilton Worldwide Holdings makes money primarily through three key revenue streams: hotel management fees, franchise fees, and direct hotel ownership. As a major player in the hospitality industry, Hilton enters into management agreements with property owners, earning fees for managing the day-to-day operations of the hotels. Additionally, the company generates substantial revenue through franchise agreements, where it licenses its brands to independent hotel owners in exchange for a fee, allowing widespread brand presence without owning the properties outright. Lastly, Hilton owns a smaller portfolio of hotel properties, directly earning revenue from hotel room bookings, food and beverage sales, and other guest services. Key partnerships with travel agencies, loyalty programs, and corporate clients also contribute to its revenue growth, enhancing brand recognition and customer loyalty.
Hilton Worldwide Holdings Financial Statement Overview
Summary
Hilton Worldwide Holdings shows strong revenue growth and profitability metrics, indicating effective management. However, high leverage and negative equity present potential risks. The company generates strong cash flows, though financial flexibility could be improved by reducing debt levels.Income Statement
Hilton Worldwide Holdings has shown robust revenue growth over the past few years, with a notable TTM (Trailing-Twelve-Months) revenue increase of 10.5% from 2023 to 2025. The gross profit margin has remained strong, consistently above 25%, indicating effective cost management. The net profit margin has also improved, reflecting better operational efficiency. These positive trends suggest strong performance in the income statement.85
Very Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio due to negative equity, which is a potential risk. However, the company maintains substantial assets, providing some stability. The return on equity (ROE) is not calculable due to negative equity, but the negative equity trend needs addressing to improve financial health. Overall, the balance sheet presents a mixed picture with both strengths in asset base and weaknesses in leverage.60
Neutral
Cash Flow
Cash flow analysis shows steady growth in free cash flow, with a TTM increase of 5.5% compared to the previous year. The operating cash flow to net income ratio is healthy, indicating strong cash generation from operations. Despite these strengths, high financing cash outflows suggest significant debt servicing costs. Overall, the cash flow statement is positive, but financial flexibility could be improved.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 11.30B | 11.17B | 10.23B | 8.77B | 5.79B | 4.31B | Gross Profit |
| 3.03B | 3.06B | 2.93B | 2.70B | 1.66B | 583.00M | EBIT |
| 2.37B | 2.37B | 2.23B | 2.09B | 1.01B | -121.00M | EBITDA |
| 2.55B | 2.50B | 2.41B | 2.27B | 1.22B | -164.00M | Net Income Common Stockholders |
| 1.57B | 1.53B | 1.14B | 1.25B | 410.00M | -720.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 731.00M | 1.30B | 800.00M | 1.21B | 1.43B | 3.22B | Total Assets |
| 16.04B | 16.52B | 15.40B | 15.51B | 15.44B | 16.75B | Total Debt |
| 11.88B | 12.00B | 10.12B | 9.69B | 9.78B | 11.63B | Net Debt |
| 11.15B | 10.70B | 9.32B | 8.48B | 8.35B | 8.41B | Total Liabilities |
| 20.38B | 20.21B | 17.75B | 16.61B | 16.26B | 18.24B | Stockholders Equity |
| -4.38B | -3.73B | -2.36B | -1.10B | -821.00M | -1.49B |
| Cash Flow | Free Cash Flow | ||||
| 1.92B | 1.81B | 1.70B | 1.58B | 30.00M | 616.00M | Operating Cash Flow |
| 2.12B | 2.01B | 1.95B | 1.68B | 109.00M | 708.00M | Investing Cash Flow |
| -469.00M | -446.00M | -305.00M | -123.00M | -57.00M | -107.00M | Financing Cash Flow |
| -2.26B | -1.04B | -2.04B | -1.76B | -1.79B | 2.03B |
Hilton Worldwide Holdings Technical Analysis
Positive
255.77
Price Trends
228.08
Positive
241.55
Positive
236.59
Positive
Market Momentum
8.41
Negative
69.75
Neutral
75.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLT, the sentiment is Positive. The current price of 255.77 is above the 20-day moving average (MA) of 234.56, above the 50-day MA of 228.08, and above the 200-day MA of 236.59, indicating a bullish trend. The MACD of 8.41 indicates Negative momentum. The RSI at 69.75 is Neutral, neither overbought nor oversold. The STOCH value of 75.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLT.
Hilton Worldwide Holdings Risk Analysis
Hilton Worldwide Holdings disclosed 40 risk factors in its most recent earnings report. Hilton Worldwide Holdings reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hilton Worldwide Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $60.80B | 40.34 | -41.19% | 0.23% | 7.43% | 38.52% | |
70 Outperform | $12.89B | 17.50 | 22.31% | 0.44% | -7.38% | 19.62% | |
69 Neutral | $74.84B | 31.12 | -144.82% | 0.92% | 5.45% | -9.50% | |
68 Neutral | $6.06B | 19.87 | -661.94% | 0.88% | 2.75% | 40.83% | |
66 Neutral | $18.66B | 31.45 | -27.16% | 1.34% | 6.34% | -11.99% | |
65 Neutral | $6.83B | 21.09 | 53.31% | 1.75% | 4.79% | 48.48% | |
61 Neutral | $6.98B | 11.35 | 2.88% | 3.90% | 2.65% | -21.84% |
* Consumer Cyclical Sector Average
Performance Comparison
HLT
Hilton Worldwide Holdings
255.77
50.58
24.65%
CHH
Choice Hotels
130.69
12.48
10.56%
H
Hyatt Hotels
135.03
-15.03
-10.02%
IHG
Intercontinental Hotels Group
122.53
23.19
23.34%
MAR
Marriott International
273.23
35.29
14.83%
WH
Wyndham Hotels & Resorts
88.74
19.19
27.59%
Hilton Worldwide Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 15.42%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
Hilton's earnings call reflected a company with a strong development pipeline and record openings. However, challenges were noted in the form of flat RevPAR forecasts and weaker performance in the leisure segment, particularly in China. Despite these challenges, the company maintains a positive outlook due to its robust business model and asset-light, fee-based approach.Q1-2025 Updates
Positive Updates
Strong Development Pipeline
Hilton expanded its development pipeline to over 503,000 rooms, a 7% year-over-year increase, with more than half of the rooms located outside the U.S. and nearly half under construction. The company also achieved a net unit growth of 7.2%.
Record Number of Openings
Hilton opened 186 hotels totaling more than 20,000 rooms in Q1 2025, representing a 20% year-over-year increase. Conversions accounted for 40% of these openings.
Luxury Portfolio Expansion
Significant growth in the luxury and lifestyle category, with 30% of all hotel openings in this segment. Waldorf Astoria opened new properties in Osaka and Costa Rica.
Recognition as a Top Employer
Hilton was named the number one best company to work for in the United States by Great Place to Work and Fortune for the second consecutive year.
Negative Updates
Flat Revenue Per Available Room (RevPAR) Forecast
Due to macroeconomic uncertainties and softening demand, Hilton expects second-quarter system-wide RevPAR to be flat year-over-year, with full-year 2025 RevPAR growth expected to be between 0% and 2%.
Weaker Leisure Segment Performance
Leisure transient RevPAR increased only 1% in Q1 2025, with softening demand patterns noted as the quarter progressed.
Challenges in China
China's RevPAR declined by 3.1% in Q1 2025, pressured by strong outbound travel during the Chinese New Year and tough year-over-year comparisons.
Company Guidance
During the first quarter of 2025 earnings call, Hilton Worldwide Holdings Inc. provided comprehensive guidance encompassing numerous metrics. They reported a 2.5% year-over-year increase in system-wide RevPAR, with group RevPAR up over 6%, business transient up by 2%, and leisure transient by 1%. Despite macroeconomic challenges, adjusted EBITDA reached $795 million, a 6% rise year-over-year, while diluted EPS adjusted for special items was $1.72. Hilton opened 186 hotels, representing a 20% increase from the previous year, achieving a net unit growth of 7.2%. The development pipeline expanded to over 503,000 rooms, marking a 7% year-over-year increase. For the second quarter, Hilton anticipates flat RevPAR growth, while full-year 2025 projections estimate RevPAR growth between zero and 2%, with adjusted EBITDA expected to fall between $3.65 billion and $3.71 billion. The company also highlighted plans to return approximately $3.3 billion to shareholders through buybacks and dividends.Hilton Worldwide Holdings Corporate Events
Shareholder Meetings
Hilton Shareholders Approve Key Charter Amendments
Neutral
May 16, 2025
At the recent Annual Meeting, Hilton Worldwide Holdings‘ stockholders voted on several key proposals. Directors were elected for a term expiring in 2026, and Ernst & Young LLP was ratified as the independent registered public accounting firm for fiscal year 2025. Additionally, stockholders approved amendments to the company’s charter, including eliminating the supermajority requirement for by-law amendments and limiting liability for certain officers.
The most recent analyst rating on (HLT) stock is a Buy with a $256.00 price target. To see the full list of analyst forecasts on Hilton Worldwide Holdings stock, see the HLT Stock Forecast page.
Spark’s Take on HLT Stock
According to Spark, TipRanks’ AI Analyst, HLT is a Outperform.
Hilton Worldwide Holdings shows strong financial performance with robust revenue growth and profitability, but high leverage poses risks. Technical indicators suggest a stable trend but caution due to overbought conditions. Valuation appears high with limited yield, and while the earnings call highlights growth potential, there are challenges in certain segments. The recent board nomination is a positive strategic development.
To see Spark’s full report on HLT stock, click here.
Executive/Board ChangesShareholder Meetings
Hilton Announces Board Changes with Mayer Nomination
Positive
Mar 4, 2025
On March 4, 2025, Hilton Worldwide Holdings announced the retirement of Judith A. McHale from its Board of Directors, effective May 13, 2025, after nearly 12 years of service. The company expressed gratitude for her contributions, particularly in the Audit and Compensation committees. Simultaneously, Hilton nominated Marissa A. Mayer, a renowned technology entrepreneur and former CEO of Yahoo!, to stand for election to the board at the upcoming annual meeting. Mayer’s extensive experience in technology and leadership is expected to support Hilton’s growth as the company navigates new technological opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.