Hilton Worldwide Holdings (HLT) AI Stock Analysis

• Market Cap: $61.90B
• Dividend Yield: 0.23%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.97
• Revenue Growth: 6.26%
• EPS Growth: 38.11%
• Country: US
• Employees: 181,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 2.20
• Shares Outstanding: 235,193,760
• 10 Day Avg. Volume: 1,709,853
• 30 Day Avg. Volume: 1,530,773
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 6.53
• Enterprise Value/Gross Profit: 24.09
• Enterprise Value/Ebitda: 28.61
• 1Y Price Target: $276.69
• Price Target Upside: 5.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 62 Neutral
• Price Target: $277.00 ▲(6.02% Upside)

Hilton's overall stock score reflects strong financial performance and positive earnings call highlights, offset by high leverage risks and bearish technical indicators. The valuation suggests the stock may be overvalued, which, combined with market challenges, results in a moderate overall score.

Positive Factors

Revenue Growth

Hilton's robust revenue growth indicates a strong recovery and expansion trajectory, showcasing its ability to capture market demand and enhance its market position.

Cash Generation

Strong cash generation capability ensures Hilton can fund operations, invest in growth opportunities, and return capital to shareholders, supporting long-term financial stability.

Net Unit Growth

Significant net unit growth expands Hilton's footprint, enhancing its competitive position and potential revenue streams, crucial for long-term business success.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, potentially impacting long-term financial health.

Decreased RevPAR

Declining RevPAR indicates challenges in maintaining pricing power and occupancy, which could pressure revenue growth and profitability in the competitive hospitality sector.

Labor Strikes

Labor strikes highlight potential operational disruptions and increased labor costs, which can affect service quality and profitability, posing long-term challenges.

Hilton Worldwide Holdings Business Overview & Revenue Model

Company Description

Hilton Worldwide Holdings Inc. is a leading global hospitality company that owns, leases, manages, and franchises a portfolio of hotels and resorts. Headquartered in McLean, Virginia, Hilton operates more than 6,500 properties across 119 countries and territories, spanning several brand segments including luxury, full-service, and focused-service hotels. Its core products and services encompass accommodations, meeting and event spaces, and various hospitality experiences tailored to both leisure and business travelers.

How the Company Makes Money

Hilton generates revenue primarily through its hotel operations, which include management and franchise fees, as well as owned and leased properties. The company earns management and franchise fees from its network of hotels, which are calculated based on a percentage of the hotels' revenues, supplemented by additional fees for services such as marketing and technology support. Significant revenue is also derived from owned and leased hotels, where Hilton retains a larger share of revenue after covering operational expenses. Additionally, the company benefits from loyalty programs, particularly the Hilton Honors program, which fosters customer retention and drives repeat bookings. Strategic partnerships with travel and tourism companies, as well as corporate clients, further enhance Hilton's revenue streams by increasing occupancy rates and average daily rates (ADR) across its portfolio.

Hilton Worldwide Holdings Financial Statement Overview

Summary

Hilton demonstrates strong revenue growth and profitability with healthy margins. However, the high debt-to-equity ratio and negative stockholders' equity pose financial risks. The company shows robust cash flow generation, but there is room for improvement in cash conversion efficiency.

Income Statement

Hilton has demonstrated strong revenue growth with a noticeable increase in total revenue from $8.77 billion in 2022 to $11.48 billion in TTM (Trailing-Twelve-Months) 2025, indicating a robust recovery and expansion trajectory. The gross profit margin remains healthy at approximately 30.31%, and the net profit margin also shows solid performance at 13.84%. The company has managed to maintain strong EBIT and EBITDA margins of 21.13% and 16.85%, respectively, over the TTM period. Hilton's profitability margins reflect efficient cost management and strong operational performance.

Balance Sheet

Hilton's balance sheet reveals a high debt-to-equity ratio due to substantial negative stockholders' equity, primarily driven by high total debt levels of $11.69 billion as of TTM 2025. The equity ratio is negative, indicating a high leverage situation which can pose risks in adverse economic conditions. However, the company's return on equity is not calculable due to negative equity, but the net income remains strong, suggesting effective utilization of assets to generate profits.

Cash Flow

The cash flow statement highlights a solid operating cash flow of $2.36 billion in the TTM period, showing a consistent increase from previous years. Free cash flow is also robust at $2.19 billion, demonstrating efficient capital expenditure management and strong cash-generating capability. The free cash flow to net income ratio is favorable, indicating that Hilton effectively converts profits into cash flows. However, the operating cash flow to net income ratio suggests room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.48B	11.17B	10.23B	8.77B	5.79B	4.31B
Gross Profit	3.11B	3.06B	2.93B	2.70B	1.66B	583.00M
EBITDA	2.62B	2.50B	2.30B	2.31B	1.15B	-164.00M
Net Income	1.59B	1.53B	1.14B	1.25B	410.00M	-715.00M
Balance Sheet
Total Assets	15.90B	16.52B	15.40B	15.51B	15.44B	16.75B
Cash, Cash Equivalents and Short-Term Investments	371.00M	1.30B	800.00M	1.21B	1.43B	3.22B
Total Debt	11.69B	12.00B	10.12B	9.69B	9.78B	11.63B
Total Liabilities	20.45B	20.21B	17.75B	16.61B	16.26B	18.24B
Stockholders Equity	-4.59B	-3.73B	-2.36B	-1.10B	-821.00M	-1.49B
Cash Flow
Free Cash Flow	2.17B	1.81B	1.70B	1.58B	30.00M	616.00M
Operating Cash Flow	2.36B	2.01B	1.95B	1.68B	109.00M	708.00M
Investing Cash Flow	-214.00M	-446.00M	-305.00M	-123.00M	-57.00M	-107.00M
Financing Cash Flow	-2.50B	-1.04B	-2.04B	-1.76B	-1.79B	2.03B

Hilton Worldwide Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 261.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLT, the sentiment is Negative. The current price of 261.28 is below the 20-day moving average (MA) of 270.96, below the 50-day MA of 269.86, and above the 200-day MA of 252.24, indicating a neutral trend. The MACD of -2.34 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 12.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLT.

Hilton Worldwide Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	77 Outperform	11.59B	24.38	30.94%	4.54%	4.43%	1.61%
WH	72 Outperform	6.22B	18.98	58.77%	1.98%	3.65%	38.50%
H	66 Neutral	13.62B	33.16	12.13%	0.42%	0.74%	-54.42%
HLT	62 Neutral	$61.90B	40.51	-41.19%	0.23%	6.26%	38.11%
IHG	60 Neutral	18.56B	24.55	-27.16%	1.40%	8.89%	23.20%
MAR	59 Neutral	71.72B	29.43	-83.23%	0.98%	5.12%	-11.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Hilton Worldwide Holdings Corporate Events

Hilton Worldwide Issues $1 Billion in Senior Notes

On July 7, 2025, Hilton Domestic Operating Company Inc., a subsidiary of Hilton Worldwide Holdings, issued $1 billion in 5.750% Senior Notes due 2033. The proceeds will be used to repay $515 million of existing debt and for general corporate purposes. The Notes, which are senior unsecured obligations, are guaranteed by Hilton Worldwide Parent LLC and other subsidiaries. The issuance is part of Hilton’s strategic financial management, potentially impacting its debt structure and liquidity.

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.

Hilton Shareholders Approve Key Charter Amendments

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.