Hilton Worldwide Holdings (HLT) AI Stock Analysis

• Market Cap: $60.00B
• Dividend Yield: 0.24%
• Average Volume (3M): 2.86M
• Price to Earnings (P/E): 39.8
• Beta (1Y): 0.92
• Revenue Growth: 7.43%
• EPS Growth: 38.52%
• Country: US
• Employees: 181,000
• Sector: Consumer Cyclical
• Sector Strength: 67
• Industry: Travel Lodging
• EPS (TTM): 1.72
• Shares Outstanding: 237,699,740
• 10 Day Avg. Volume: 2,394,314
• 30 Day Avg. Volume: 2,858,845
• PEG Ratio: 11.70
• Price to Book (P/B): -13.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.16
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 22.74
• Enterprise Value/Ebitda: 6.88
• 1Y Price Target: $244.82
• Price Target Upside: -4.37% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

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.

Positive Factors

Business Model

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.

Development Pipeline

Development is continuing with Hilton hitting a record pipeline, and there is no evidence of any developer/customer backlash against Hilton’s brands.

Negative Factors

Economic Dependency

Hilton has higher dependency on business travelers to drive demand, which is generally more volatile and dependent on macroeconomic conditions.

Revenue per Available Room (RevPAR)

US RevPAR slowdown led to a downgrade of Q2/FY expectations, with RevPAR now expected to be flat for Q2 and less than 1% for H2.

Hilton Worldwide Holdings Business Overview & Revenue Model

Company Description

Hilton 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 Money

Hilton 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 256.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 256.01 is above the 20-day moving average (MA) of 228.04, above the 50-day MA of 228.26, and above the 200-day MA of 236.04, indicating a bullish trend. The MACD of 7.18 indicates Negative momentum. The RSI at 72.25 is Negative, neither overbought nor oversold. The STOCH value of 87.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLT.

Hilton Worldwide Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLT	73 Outperform	$60.00B	39.82	-41.19%	0.24%	7.43%	38.52%
H	72 Outperform	$12.88B	17.49	22.31%	0.44%	-7.38%	19.62%
MAR	69 Neutral	$74.49B	30.98	-144.82%	0.93%	5.45%	-9.50%
CHH	68 Neutral	$5.87B	19.24	-661.94%	0.91%	2.75%	40.83%
IHG	66 Neutral	$18.56B	31.02	-27.16%	1.36%	6.34%	-11.99%
WH	65 Neutral	$6.68B	20.63	53.31%	1.78%	4.79%	48.48%
Sector *	61 Neutral	$6.93B	11.84	2.89%	3.91%	2.59%	-21.68%

Hilton Worldwide Holdings Corporate Events

Hilton Announces Board Changes with Mayer Nomination

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.