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Hilton Reports First Quarter Results
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240424368966/en/
Diluted EPS was $1.04 for the first quarter, and diluted EPS, adjusted for special items, was $1.53 Net income was $268 million for the first quarter Adjusted EBITDA was $750 million for the first quarter System-wide comparable RevPAR increased 2.0 percent, on a currency neutral basis, for the first quarter compared to the same period in 2023 Approved 29,800 new rooms for development during the first quarter, bringing Hilton's development pipeline to a record 472,300 rooms as of March 31, 2024, representing growth of 10 percent from March 31, 2023 Added 16,800 rooms to Hilton's system in the first quarter, resulting in 14,200 net additional rooms for the first quarter, contributing to net unit growth of 5.6 percent from March 31, 2023 Repurchased 3.4 million shares of Hilton common stock during the first quarter; total capital return, including dividends, was $701 million for the quarter and $908 million year to date through April Announced the planned acquisition of the Graduate Hotels brand, including the expected addition of approximately 35 franchised hotels to our portfolio in the second quarter In April 2024, acquired a controlling financial interest in the Sydell Group, which owns the NoMad brand, marking Hilton's debut in the luxury lifestyle space and providing further luxury expansion opportunities In March 2024, issued $1.0 billion of senior notes consisting of: (i) $550 million aggregate principal amount of 5.875% Senior Notes due 2029 and (ii) $450 million aggregate principal amount of 6.125% Senior Notes due 2032 Full year 2024 system-wide RevPAR is projected to increase between 2.0 percent and 4.0 percent on a comparable and currency neutral basis compared to 2023; full year net income is projected to be between $1,586 million and $1,621 million; full year Adjusted EBITDA is projected to be between $3,375 million and $3,425 million Full year 2024 capital return is projected to be approximately $3.0 billion
Overview
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We are pleased to report a strong first quarter with bottom line results meaningfully exceeding our expectations, further demonstrating the power of our resilient, fee-based business model and strong development story. During the first quarter, system-wide RevPAR increased 2.0 percent as renovations, inclement weather and unfavorable holiday shifts weighed on performance more than anticipated. On the development side, we continued to see great momentum across signings, starts and openings. As a result of our record pipeline and the growth pace we've seen to-date, we expect net unit growth of 6.0 percent to 6.5 percent for the full year, excluding the planned acquisition of the Graduate Hotels brand."
For the three months ended March 31, 2024, system-wide comparable RevPAR increased 2.0 percent compared to the same period in 2023 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 14.4 percent compared to the same period in 2023.
For the three months ended March 31, 2024, diluted EPS was $1.04 and diluted EPS, adjusted for special items, was $1.53 compared to $0.77 and $1.24, respectively, for the three months ended March 31, 2023. Net income and Adjusted EBITDA were $268 million and $750 million, respectively, for the three months ended March 31, 2024, compared to $209 million and $641 million, respectively, for the three months ended March 31, 2023.
Development
In the first quarter of 2024, Hilton opened 106 hotels, totaling 16,800 rooms, resulting in 14,200 net room additions. During the quarter, Hilton celebrated a number of significant luxury and lifestyle openings including: the grand opening of the Conrad Orlando in Florida, the debut of LXR Hotels & Resorts in Hawaii and the introduction of the Waldorf Astoria and Canopy by Hilton brands to the Seychelles. Furthermore, Hilton debuted the Curio Collection by Hilton brand in Kenya and Motto by Hilton brand in Peru and entered into partnerships with AutoCamp and Small Luxury Hotels of the World ("SLH"), which will provide new elevated lodging experiences to Hilton guests. Hilton also announced the Waldorf Astoria Residences Dubai Downtown, which will be the Company's first standalone residential property outside of the United States. Additionally, during the quarter, Hampton by Hilton celebrated the opening of its 3,000th hotel globally, kicking off a year of milestones and achievements for the brand including its 40th anniversary, entry into its 40th country and its expected groundbreaking entry into its fifth continent, Africa, later this year.
Hilton added 29,800 rooms to the development pipeline during the first quarter, and, as of March 31, 2024, Hilton's development pipeline totaled approximately 3,380 hotels representing 472,300 rooms throughout 119 countries and territories, including 31 countries and territories where Hilton had no existing hotels. Additionally, of the rooms in the development pipeline, 229,700 were under construction and 267,900 were located outside of the U.S.
Balance Sheet and Liquidity
As of March 31, 2024, Hilton had $10.3 billion of long-term debt outstanding, excluding the deduction for deferred financing costs and discounts, with a weighted average interest rate of 4.89 percent. Excluding all finance lease liabilities and other debt of Hilton's consolidated variable interest entities, Hilton had $10.1 billion of long-term debt outstanding with a weighted average interest rate of 4.88 percent and no scheduled maturities until May 2025. As of March 31, 2024, no debt amounts were outstanding under Hilton's $2.0 billion senior secured revolving credit facility (the "Revolving Credit Facility"), which had an available borrowing capacity of $1,913 million after considering $87 million of outstanding letters of credit. Total cash and cash equivalents were $1,420 million as of March 31, 2024, including $74 million of restricted cash and cash equivalents.
In March 2024, Hilton issued $550 million aggregate principal amount of 5.875% Senior Notes due 2029 and $450 million aggregate principal amount of 6.125% Senior Notes due 2032 and used a portion of the net proceeds from the issuances to repay $200 million borrowed under the Revolving Credit Facility earlier in the first quarter. The remaining proceeds will be used for general corporate purposes, which may include investments and acquisitions.
In March 2024, Hilton paid a quarterly cash dividend of $0.15 per share of common stock, bringing total dividend payments for the quarter to $39 million. In April 2024, Hilton's board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on June 28, 2024 to holders of record of its common stock as of the close of business on May 17, 2024.
During the three months ended March 31, 2024, Hilton repurchased 3.4 million shares of its common stock at an average price per share of $196.17, for a total of $662 million, returning $701 million of capital to shareholders during the quarter including dividends. The number of shares outstanding as of April 19, 2024 was 250.0 million.
Outlook
Share-based metrics in Hilton's outlook include actual share repurchases through the first quarter, but do not include the effect of potential share repurchases thereafter. Additionally, Hilton's outlook does not include the effect of the planned acquisition of Graduate Hotels.
Full Year 2024
System-wide comparable RevPAR, on a currency neutral basis, is projected to increase between 2.0 percent and 4.0 percent compared to 2023. Diluted EPS is projected to be between $6.21 and $6.35. Diluted EPS, adjusted for special items, is projected to be between $6.89 and $7.03. Net income is projected to be between $1,586 million and $1,621 million. Adjusted EBITDA is projected to be between $3,375 million and $3,425 million. Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are projected to be between $250 million and $300 million. Capital return is projected to be approximately $3.0 billion. General and administrative expenses are projected to be between $415 million and $430 million. Net unit growth, excluding the effect of the planned acquisition of the Graduate Hotels brand, is projected to be between 6.0 percent and 6.5 percent.
Second Quarter 2024
System-wide comparable RevPAR, on a currency neutral basis, is projected to increase between 2.0 percent and 4.0 percent compared to the second quarter of 2023. Diluted EPS is projected to be between $1.74 and $1.80. Diluted EPS, adjusted for special items, is projected to be between $1.80 and $1.86. Net income is projected to be between $443 million and $457 million. Adjusted EBITDA is projected to be between $890 million and $910 million.
Conference Call
Hilton will host a conference call to discuss first quarter of 2024 results on April 24, 2024 at 9:00 a.m. Eastern Time. Participants may listen to the live webcast by logging on to the Hilton Investor Relations website at https://ir.hilton.com/events-and-presentations. A replay and transcript of the webcast will be available within 24 hours after the live event at https://ir.hilton.com/financial-reporting.
Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States ("U.S.") or 1-412-317-6061 internationally using the conference ID 7619875. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-877-344-7529 in the U.S. or 1-412-317-0088 internationally using the conference ID 2963787.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, future financial results, liquidity and capital resources and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "forecasts," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks inherent to the hospitality industry; macroeconomic factors beyond our control, such as inflation, changes in interest rates, challenges due to labor shortages or disputes and supply chain disruptions; competition for hotel guests and management and franchise contracts; risks related to doing business with third-party hotel owners; performance of our information technology systems; growth of reservation channels outside of our system; risks of doing business outside of the U.S.; risks associated with conflicts in Eastern Europe and the Middle East and other geopolitical events; and our indebtedness. Additional factors that could cause Hilton's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I--Item 1A. Risk Factors" of Hilton's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which is filed with the Securities and Exchange Commission (the "SEC") and is accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Definitions
See the "Definitions" section for the definition of certain terms used within this press release, including within the schedules.
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including: net income, adjusted for special items; diluted EPS, adjusted for special items; EBITDA; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA ratio. See the schedules to this press release, including the "Definitions" section, for additional information and reconciliations of such non-GAAP financial measures, as well as the most comparable GAAP financial measures.
About Hilton
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 23 world-class brands comprising more than 7,600 properties and nearly 1.2 million rooms, in 126 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 3 billion guests in its more than 100-year history, was named the No.1 World's Best Workplace by Great Place to Work and Fortune and has been recognized as a global leader on the Dow Jones Sustainability Indices for seven consecutive years. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the nearly 190 million members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on facebook.com/hiltonnewsroom, twitter.com/hiltonnewsroom, linkedin.com/company/hilton, instagram.com/hiltonnewsroom and youtube.com/hiltonnewsroom.
HILTON WORLDWIDE HOLDINGS INC.
EARNINGS RELEASE SCHEDULES
TABLE OF CONTENTS
Condensed Consolidated Statements of Operations
Comparable and Currency Neutral System-Wide Hotel Operating Statistics
Property Summary
Capital Expenditures and Contract Acquisition Costs
Reconciliations of Non-GAAP Financial Measures
HILTON WORLDWIDE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months Ended
March 31,
--------------------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Revenues
$ 571 $ 508
Franchise and licensing fees
106 80
Base and other management fees
70 65
Incentive management fees
255 248
Owned and leased hotels
50 35
Other revenues
-------------------- -------------- -------------------- -------------------- -------------- --------------------
1,052 936
1,521 1,357
Other revenues from managed and franchised properties
-------------------- -------------- -------------------- -------------------- -------------- --------------------
2,573 2,293
Total revenues
Expenses
247 251
Owned and leased hotels
36 37
Depreciation and amortization
104 91
General and administrative
30 21
Other expenses
-------------------- -------------- -------------------- -------------------- -------------- --------------------
417 400
1,630 1,395
Other expenses from managed and franchised properties
-------------------- -------------- -------------------- -------------------- -------------- --------------------
2,047 1,795
Total expenses
7 --
Gain on sales of assets, net
Operating income 533 498
(131 ) (116 )
Interest expense
(1 ) --
Loss on foreign currency transactions
-- (92 )
Loss on investments in unconsolidated affiliate
(36 ) 12
Other non-operating income (loss), net
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Income before income taxes 365 302
(97 ) (93 )
Income tax expense
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income 268 209
Net income attributable to noncontrolling interests (3 ) (3 )
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income attributable to Hilton stockholders $ 265 $ 206
==================== ============== ==================== ==================== ============== ====================
Weighted average shares outstanding:
252 266
Basic
==================== ============== ==================== ==================== ============== ====================
255 269
Diluted
==================== ============== ==================== ==================== ============== ====================
Earnings per share:
$ 1.05 $ 0.77
Basic
==================== ============== ==================== ==================== ============== ====================
$ 1.04 $ 0.77
Diluted
==================== ============== ==================== ==================== ============== ====================
HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY REGION, BRAND AND SEGMENT
(unaudited)
Three Months Ended March 31,
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Occupancy ADR RevPAR
---------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------
2024 vs. 2023 2024 vs. 2023 2024 vs. 2023
------------------------------ -------------------------------------------------- ---------------------------------------------- ------------------------------ ---------------------------------------------- ------------------------------
System-wide 67.2 % 0.2 % pts. $ 154.91 1.7 % $ 104.16 2.0 %
Region
67.7 % (0.6 )% pts. $ 161.67 0.5 % $ 109.53 (0.4 )%
U.S.
65.8 1.4 157.60 5.0 103.67 7.3
Americas (excluding U.S.)
64.9 3.1 141.99 4.5 92.14 9.7
Europe
73.6 2.4 193.22 11.0 142.23 14.8
Middle East & Africa
65.2 1.3 114.90 5.7 74.95 7.9
Asia Pacific
Brand
63.9 % 3.2 % pts. $ 556.56 (2.1 )% $ 355.44 3.0 %
Waldorf Astoria Hotels & Resorts
71.4 4.8 286.62 6.9 204.67 14.6
Conrad Hotels & Resorts
56.5 5.1 636.76 (1.0 ) 359.54 8.8
LXR Hotels & Resorts
66.7 2.0 213.41 0.1 142.28 3.2
Canopy by Hilton
66.3 1.9 189.18 3.4 125.40 6.4
Hilton Hotels & Resorts
66.3 3.3 233.92 (0.1 ) 155.01 5.1
Curio Collection by Hilton
64.1 1.2 138.10 1.1 88.48 3.1
DoubleTree by Hilton
61.8 1.4 170.63 0.1 105.48 2.4
Tapestry Collection by Hilton
70.9 1.4 180.04 0.2 127.65 2.2
Embassy Suites by Hilton
76.8 5.5 167.64 (3.5 ) 128.69 4.0
Motto by Hilton
66.2 (0.3 ) 138.08 (0.3 ) 91.39 (0.7 )
Hilton Garden Inn
66.1 (1.6 ) 123.94 0.7 81.93 (1.7 )
Hampton by Hilton
66.6 (0.6 ) 123.13 (0.3 ) 81.97 (1.2 )
Tru by Hilton
75.5 (1.0 ) 151.57 0.4 114.37 (1.0 )
Homewood Suites by Hilton
74.2 (0.9 ) 135.01 0.1 100.22 (1.1 )
Home2 Suites by Hilton
Segment
67.2 % 0.1 % pts. $ 154.36 1.6 % $ 103.78 1.8 %
Management and franchise
____________
HILTON WORLDWIDE HOLDINGS INC.
PROPERTY SUMMARY
As of March 31, 2024
Owned / Leased(1) Managed Franchised / Licensed Total
------------------------------------------------------------ ------------------------------------------------------------ ------------------------------------------------------------ ------------------------------------------------------------
Properties Rooms Properties Rooms Properties Rooms Properties Rooms
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Waldorf Astoria Hotels & Resorts 2 463 34 9,432 -- -- 36 9,895
Conrad Hotels & Resorts 2 779 43 14,207 4 2,496 49 17,482
LXR Hotels & Resorts -- -- 5 935 9 1,301 14 2,236
Signia by Hilton -- -- 3 2,526 -- -- 3 2,526
Canopy by Hilton -- -- 9 1,328 32 5,732 41 7,060
Hilton Hotels & Resorts 47 16,250 291 125,754 272 83,807 610 225,811
Curio Collection by Hilton -- -- 30 7,856 135 23,618 165 31,474
DoubleTree by Hilton -- -- 162 44,702 522 111,560 684 156,262
Tapestry Collection by Hilton -- -- 5 694 123 14,488 128 15,182
Embassy Suites by Hilton -- -- 39 10,447 228 51,314 267 61,761
Tempo by Hilton -- -- 1 661 1 306 2 967
Motto by Hilton -- -- -- -- 7 1,552 7 1,552
Hilton Garden Inn -- -- 118 23,247 898 126,653 1,016 149,900
Hampton by Hilton -- -- 53 8,501 2,952 323,996 3,005 332,497
Tru by Hilton -- -- -- -- 258 25,215 258 25,215
Spark by Hilton -- -- -- -- 19 1,936 19 1,936
Homewood Suites by Hilton -- -- 11 1,405 529 60,466 540 61,871
Home2 Suites by Hilton -- -- 2 210 667 72,246 669 72,456
Other(2) -- -- 3 1,414 16 3,503 19 4,917
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
51 17,492 809 253,319 6,672 910,189 7,532 1,181,000
Total hotels
Hilton Grand Vacations(3) -- -- -- -- 94 16,329 94 16,329
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
51 17,492 809 253,319 6,766 926,518 7,626 1,197,329
Total system
==================== ==================== ==================== ==================== ==================== ==================== ==================== ====================
Owned / Leased(1) Managed Franchised / Licensed Total
------------------------------------------------------------ ------------------------------------------------------------ ------------------------------------------------------------ ------------------------------------------------------------
Properties Rooms Properties Rooms Properties Rooms Properties Rooms
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
U.S. -- -- 196 85,661 5,446 708,165 5,642 793,826
Americas (excluding U.S.) 1 405 74 18,366 325 49,978 400 68,749
Europe 39 11,604 106 27,159 409 69,663 554 108,426
Middle East & Africa 5 2,320 108 30,622 24 5,309 137 38,251
Asia Pacific 6 3,163 325 91,511 468 77,074 799 171,748
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
51 17,492 809 253,319 6,672 910,189 7,532 1,181,000
Total hotels
Hilton Grand Vacations(3) -- -- -- -- 94 16,329 94 16,329
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
____________
(1)
Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.
(2)
Includes other hotels in our system that are not distinguished by a specific Hilton brand.
HILTON WORLDWIDE HOLDINGS INC.
CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS
(dollars in millions)
(unaudited)
Three Months Ended
March 31, Increase / (Decrease)
------------------------------------------------------------------------------------------------------------ -------------------------------------
2024 2023 $ %
-------------------- ---- -------------------- -------------------- ---- -------------------- -------- ---------
Capital expenditures for property and equipment(1) $ 16 $ 44 (28 ) (63.6 )
Capitalized software costs(2) 18 19 (1 ) (5.3 )
-------------------- ---- -------------------- -------------------- ---- -------------------- ---- ----
34 63 (29 ) (46.0 )
Total capital expenditures
Contract acquisition costs, net of refunds(3) 37 105 (68 ) (64.8 )
-------------------- ---- -------------------- -------------------- ---- -------------------- ---- ----
____________
(1)
Represents expenditures for hotels, corporate and other property and equipment, which include amounts reimbursed by third parties of $8 million and $2 million for the three months ended March 31, 2024 and 2023, respectively. Excludes expenditures for FF&E replacement reserves of $11 million and $8 million for the three months ended March 31, 2024 and 2023, respectively. The decreases during the periods were primarily due to the timing of certain corporate and hotel capital expenditure projects.
(2)
Includes $17 million and $18 million of expenditures that were reimbursed to us by third parties for the three months ended March 31, 2024 and 2023, respectively.
HILTON WORLDWIDE HOLDINGS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS
(in millions, except per share data)
(unaudited)
Three Months Ended
March 31,
--------------------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income attributable to Hilton stockholders, as reported $ 265 $ 206
Diluted EPS, as reported $ 1.04 $ 0.77
Special items:
$ 109 $ 38
Net other expenses from managed and franchised properties
1 11
Purchase accounting amortization(1)
-- 92
Loss on investments in unconsolidated affiliate(2)
47 --
Loss on debt guarantees(3)
11 8
FF&E replacement reserves
(7 ) --
Gain on sales of assets, net
4 5
Other adjustments(4)
-------------------- -------------- -------------------- -------------------- -------------- --------------------
165 154
Total special items before taxes
(40 ) (27 )
Income tax expense on special items
-------------------- -------------- -------------------- -------------------- -------------- --------------------
$ 125 $ 127
Total special items after taxes
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income, adjusted for special items $ 390 $ 333
==================== ============== ==================== ==================== ============== ====================
____________
(1)
Amounts represent the amortization expense related to finite-lived intangible assets that were recorded at fair value in 2007 when the Company became a wholly owned subsidiary of affiliates of Blackstone Inc. The majority of the related assets were fully amortized as of December 31, 2023, some of which became fully amortized during the three months ended December 31, 2023.
(2)
Amount for the three months ended March 31, 2023 includes losses recognized related to equity and debt financing that Hilton had previously provided to an unconsolidated affiliate with underlying investments in certain hotels that Hilton currently manages or franchises.
(3)
Amount includes losses on debt guarantees for certain hotels that Hilton manages, which were recognized in other non-operating loss, net.
HILTON WORLDWIDE HOLDINGS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
NET INCOME MARGIN AND
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(dollars in millions)
(unaudited)
Three Months Ended
March 31,
--------------------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income $ 268 $ 209
131 116
Interest expense
97 93
Income tax expense
36 37
Depreciation and amortization expenses
-------------------- -------------- -------------------- -------------------- -------------- --------------------
EBITDA 532 455
(7 ) --
Gain on sales of assets, net
1 --
Loss on foreign currency transactions
-- 92
Loss on investments in unconsolidated affiliate(1)
47 --
Loss on debt guarantees(2)
11 8
FF&E replacement reserves
41 33
Share-based compensation expense
12 10
Amortization of contract acquisition costs
109 38
Net other expenses from managed and franchised properties
4 5
Other adjustments(3)
-------------------- -------------- -------------------- -------------------- -------------- --------------------
____________
(1)
Amount includes losses recognized related to equity and debt financing that Hilton had previously provided to an unconsolidated affiliate with underlying investments in certain hotels that Hilton manages or franchises.
(2)
Amount includes losses on debt guarantees for certain hotels that Hilton manages, which were recognized in other non-operating loss, net.
Three Months Ended
March 31,
----------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- ------ -------------------- -------------------- ------ --------------------
Total revenues, as reported $ 2,573 $ 2,293
12 10
Add: amortization of contract acquisition costs
(1,521 ) (1,357 )
Less: other revenues from managed and franchised properties
-------------------- ------ -------------------- -------------------- ------ --------------------
Total revenues, as adjusted $ 1,064 $ 946
==================== ====== ==================== ==================== ====== ====================
Net income $ 268 $ 209
==================== ====== ==================== ==================== ====== ====================
Net income margin 10.4 % 9.1 %
==================== ====== ==================== ==================== ====== ====================
Adjusted EBITDA $ 750 $ 641
==================== ====== ==================== ==================== ====== ====================
HILTON WORLDWIDE HOLDINGS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
LONG-TERM DEBT TO NET INCOME RATIO AND
NET DEBT AND NET DEBT TO ADJUSTED EBITDA RATIO
(dollars in millions)
(unaudited)
March 31, December 31,
2024 2023
-------------------- ------ -------------------- -------------------- ----- --------------------
Long-term debt, including current maturities $ 10,173 $ 9,196
83 71
Add: unamortized deferred financing costs and discounts
-------------------- ------ -------------------- -------------------- ----- --------------------
Long-term debt, including current maturities and excluding the deduction for unamortized deferred financing costs and discounts 10,256 9,267
(1,346 ) (800 )
Less: cash and cash equivalents
(74 ) (75 )
Less: restricted cash and cash equivalents
-------------------- ------ -------------------- -------------------- ----- --------------------
Three Months Ended Year Ended TTM Ended
March 31, December 31, March 31,
-------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------ ------------------------------------------------------
2024 2023 2023 2024
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income $ 268 $ 209 $ 1,151 $ 1,210
131 116 464 479
Interest expense
97 93 541 545
Income tax expense
36 37 147 146
Depreciation and amortization expenses
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
EBITDA 532 455 2,303 2,380
(7 ) -- -- (7 )
Gain on sales of assets, net
1 -- 16 17
Loss on foreign currency transactions
-- 92 92 --
Loss on investments in unconsolidated affiliate(1)
47 -- -- 47
Loss on debt guarantees(2)
11 8 63 66
FF&E replacement reserves
41 33 169 177
Share-based compensation expense
--