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Hilton reports second quarter results; Raises full year outlook

Hilton Worldwide Holdings Inc. (“Hilton” or the “Company”) (NYSE: HLT) today reported its second quarter 2023 results. Highlights include:

  • Diluted EPS was $1.55 for the second quarter, and diluted EPS, adjusted for special items, was $1.63, both exceeding the high end of guidance
  • Net income was $413 million for the second quarter, exceeding the high end of guidance
  • Adjusted EBITDA was $811 million for the second quarter, exceeding the high end of guidance
  • System-wide comparable RevPAR increased 12.1 percent, on a currency neutral basis, for the second quarter compared to the same period in 2022
  • System-wide comparable RevPAR increased 9.3 percent, on a currency neutral basis, for the second quarter compared to the same period in 2019
  • Approved 36,000 new rooms for development during the second quarter, bringing Hilton’s development pipeline to 440,900 rooms as of June 30, 2023, representing growth of 7 percent from June 30, 2022

  • Added 14,000 rooms to Hilton’s system in the second quarter, resulting in 11,200 net additional rooms in Hilton’s system during the period
  • Repurchased 3.3 million shares of Hilton common stock during the second quarter, bringing total capital return, including dividends, to $510 million for the quarter and $1,123 million year to date through July
  • Launched a new extended-stay brand with the working title Project H3 in May 2023
  • Full year 2023 system-wide RevPAR is expected to increase between 10 percent and 12 percent on a comparable and currency neutral basis compared to 2022; full year net income is projected to be between $1,387 million and $1,422 million; full year Adjusted EBITDA is projected to be between $2,975 million and $3,025 million
  • Full year 2023 capital return is projected to be between $2.4 billion and $2.6 billion

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, “System-wide comparable RevPAR continued to expand throughout the quarter, experiencing growth across all of our customer segments and regions, driven by strong preference for our brands. Our top line performance yielded meaningful bottom line results, as we exceeded the high end of our guidance for Adjusted EBITDA and diluted EPS, adjusted for special items. We continue to drive long-term growth of our global network through the launch of strategic, new brands and have already added over 60,000 rooms to our development pipeline during 2023.”

For the three months ended June 30, 2023, system-wide comparable RevPAR increased 12.1 percent compared to the sameperiod in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 16.1percent compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR forthe three months ended June 30, 2023 increased 9.3 percent compared to the same period in 2019, and management and
franchise fee revenues increased 30.8 percent from the same period in 2019.

For the six months ended June 30, 2023, system-wide comparable RevPAR increased 19.7 percent compared to the sameperiod in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 22.1percent compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR forthe six months ended June 30, 2023 increased 8.8 percent compared to the same period in 2019, and management and
franchise fee revenues increased 28.7 percent from the same period in 2019.

For the three months ended June 30, 2023, diluted EPS was $1.55 and diluted EPS, adjusted for special items, was $1.63compared to $1.32 and $1.29, respectively, for the three months ended June 30, 2022. Net income and Adjusted EBITDA were
$413 million and $811 million, respectively, for the three months ended June 30, 2023, compared to $367 million and $679million, respectively, for the three months ended June 30, 2022.

For the six months ended June 30, 2023, diluted EPS was $2.31 and diluted EPS, adjusted for special items, was $2.86compared to $2.07 and $2.00, respectively, for the six months ended June 30, 2022. Net income and Adjusted EBITDA were$622 million and $1,452 million, respectively, for the six months ended June 30, 2023, compared to $578 million and $1,127million, respectively, for the six months ended June 30, 2022.

For the detailed Report, please visit Hilton websiste.


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