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Hilton Worldwide Holdings (HLT)
NYSE:HLT
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Hilton Worldwide Holdings
(NYSE:HLT)68Neutral
Positive Factors
Financial Performance
Hilton reported Q4 results and a 2025 outlook ahead of expectation and the Street’s expectation.
Market Performance
Lodging stocks were up with Hilton kicking off earnings, and the group was up on average vs the S&P 500.
Negative Factors
Earnings Guidance
The guidance for 1Q is below street expectations, with EPS and EBITDA both lower than anticipated.
Hilton Worldwide Holdings (HLT) vs. S&P 500 (SPY)
Market Cap
$63.42B
Dividend Yield0.23%
Average Volume (3M)1.57M
Price to Earnings (P/E)42.9
Beta (1Y)0.87
Revenue Growth9.17%
EPS Growth42.78%
CountryUS
Employees181,000
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)6.14
Shares Outstanding240,596,510
10 Day Avg. Volume1,419,728
30 Day Avg. Volume1,570,670
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)N/A
Price to Sales (P/S)10.01
Price to Cash Flow (P/CF)27.20
P/FCF Ratio24.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$262.50Price Target Upside1.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
Hilton Worldwide Holdings Business Overview & Revenue Model
Company DescriptionVirginia-based Hilton Worldwide Holdings, Inc. is a hospitality company, which owns, leases, manages, develops, and franchises hotels and resorts. It operates through two segments, Management and Franchise, and Ownership.
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 demonstrates strong operational performance with significant revenue growth and cash flow generation. However, the balance sheet poses potential risks due to negative stockholders' equity, despite zero debt, indicating capital structure vulnerabilities.Income Statement
Hilton Worldwide Holdings demonstrated strong financial performance with a consistent increase in revenue from $9.45 billion in 2019 to $11.17 billion in 2024, reflecting a robust revenue growth trajectory. The EBIT margin improved over the years, reaching 21.2% in 2024, indicating efficient cost management. However, the net profit margin showed some variability, achieving 13.7% in 2024, which is healthy but impacted by past fluctuations.88
Very Positive
Balance Sheet
The balance sheet presents a mixed picture. While the company has effectively reduced total debt to zero in 2024, negative stockholders' equity poses a risk, reflecting accumulated losses or high dividend payouts. The absence of debt improves the debt-to-equity ratio, but the negative equity ratio suggests potential vulnerabilities in capital structure.45
Neutral
Cash Flow
Cash flow statements are a strong point for Hilton, with a significant increase in free cash flow from $0.62 billion in 2020 to $2.01 billion in 2024. The operating cash flow to net income ratio is robust, exceeding 1, indicating strong cash generation relative to reported profits. This positive free cash flow trend supports operational and financial flexibility.92
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.17B | 10.23B | 8.77B | 5.79B | 4.31B | Gross Profit |
| 3.06B | 2.93B | 2.70B | 1.66B | 583.00M | EBIT |
| 2.37B | 2.23B | 2.09B | 1.01B | -121.00M | EBITDA |
| 2.50B | 2.41B | 2.27B | 1.22B | -164.00M | Net Income Common Stockholders |
| 1.53B | 1.14B | 1.25B | 410.00M | -720.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 53.00M | 800.00M | 1.21B | 1.43B | 3.22B | Total Assets |
| 16.52B | 15.40B | 15.51B | 15.44B | 16.75B | Total Debt |
| 12.00B | 10.12B | 9.69B | 9.78B | 11.63B | Net Debt |
| 10.70B | 9.32B | 8.48B | 8.35B | 8.41B | Total Liabilities |
| 20.21B | 17.75B | 16.61B | 16.26B | 18.24B | Stockholders Equity |
| -3.73B | -2.36B | -1.10B | -821.00M | -1.49B |
| Cash Flow | Free Cash Flow | |||
| 2.01B | 1.70B | 1.58B | 30.00M | 616.00M | Operating Cash Flow |
| 2.01B | 1.95B | 1.68B | 109.00M | 708.00M | Investing Cash Flow |
| -446.00M | -305.00M | -123.00M | -57.00M | -107.00M | Financing Cash Flow |
| -1.04B | -2.04B | -1.76B | -1.79B | 2.03B |
Hilton Worldwide Holdings Technical Analysis
Neutral
259.49
Price Trends
254.91
Positive
250.11
Positive
232.17
Positive
Market Momentum
1.25
Positive
48.64
Neutral
41.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLT, the sentiment is Neutral. The current price of 259.49 is below the 20-day moving average (MA) of 264.55, above the 50-day MA of 254.91, and above the 200-day MA of 232.17, indicating a neutral trend. The MACD of 1.25 indicates Positive momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 41.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.11B | 28.93 | 44.46% | 1.43% | ― | 6.40% | |
71 Outperform | $6.75B | 23.29 | -661.94% | 0.80% | 2.63% | 23.39% | |
68 Neutral | $63.42B | 42.93 | -41.19% | 0.23% | 9.17% | 42.78% | |
66 Neutral | $74.66B | 32.52 | -144.82% | 0.91% | 5.85% | -18.43% | |
64 Neutral | $13.20B | 10.85 | 36.54% | 0.44% | -6.41% | 511.40% | |
61 Neutral | $19.58B | 32.29 | -27.16% | 1.23% | 6.34% | -11.99% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
HLT
Hilton Worldwide Holdings
259.49
56.41
27.78%
CHH
Choice Hotels
144.07
25.17
21.17%
H
Hyatt Hotels
139.87
-16.83
-10.74%
IHG
Intercontinental Hotels Group
126.19
20.91
19.86%
MAR
Marriott International
271.10
26.46
10.82%
WH
Wyndham Hotels & Resorts
105.27
31.74
43.17%
Hilton Worldwide Holdings Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 0.69% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in 2024 with record unit growth, strategic expansions, and robust financial results. Despite challenges in the Chinese market and some FX impacts, the outlook for 2025 remains optimistic with continued growth and development anticipated.Highlights
Record Unit Growth and Strategic Partnerships
Hilton added the highest number of rooms in its history, opened more rooms than ever, and entered new markets including Paraguay, Bonaire, and Australia with new brands and strategic partnerships, resulting in record net unit growth of 7.3% in 2024.
Strong Financial Performance
For the full year, system-wide RevPAR increased by 2.7%, and adjusted EBITDA reached over $3.4 billion, reflecting an 11% year-over-year increase. Hilton returned $3 billion to shareholders through free cash flow.
Positive Development and Expansion Outlook
Hilton signed 154,000 rooms, marking its biggest year of signings to date, and expects strong development in 2025 with anticipated net unit growth of 6% to 7%.
Innovative Brand and Service Expansion
Hilton launched new wellness initiatives partnering with Peloton and Calm, and celebrated the opening of its 100th hotel in the Spark brand with further expansion plans in India and the CALA region.
Lowlights
Challenges in the Chinese Market
China's RevPAR declined by 4% in the fourth quarter due to softer macro conditions and travel constraints, although there was some improvement following fiscal stimulus.
FX and One-Time Impacts on Earnings
Management franchise fees were impacted by FX drag, and Q1 of 2025 is expected to face challenging comparisons due to one-time items in Q1 2024.
Company Guidance
During the Hilton Fourth Quarter 2024 earnings call, the company reported a record year with significant growth metrics, including a 2.7% increase in system-wide RevPAR for the full year and a 3.5% increase for the fourth quarter compared to the previous year. The company achieved record adjusted EBITDA of over $3.4 billion, up 11% year over year, and returned $3 billion to shareholders. Hilton added a record 973 hotels, representing nearly 100,000 rooms, resulting in a net unit growth of 7.3%. The company signed 154,000 rooms in the year, an 18% increase, and opened 171 hotels in the fourth quarter. For 2025, Hilton expects system-wide RevPAR growth of 2% to 3% and adjusted EBITDA of $3.7 billion to $3.74 billion. The company plans to return approximately $3.3 billion to shareholders and anticipates strong development prospects, continuing its expansion with strategic partnerships and new market entries.Hilton Worldwide Holdings Corporate Events
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.
Executive/Board Changes
Hilton Announces Leadership Change in Accounting Division
Neutral
Dec 13, 2024
Hilton Worldwide Holdings announced the resignation of Michael W. Duffy as Senior Vice President, Chief Accounting and Risk Officer, effective February 7, 2025, as he pursues opportunities outside the company. Misha Moylan, with extensive experience within Hilton, will replace him, ensuring continuity in financial oversight without any disputes related to the company’s financial practices.
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.