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1. Company Snapshot

1.a. Company Description

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts.It operates through two segments, Management and Franchise, and Ownership.The company engages in the hotel management and licensing of its brands.


It operates hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Tempo by Hilton, Motto by Hilton, Signia by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, and Hilton Grand Vacations.The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific.As of February 16, 2022, the company had approximately 6,800 properties with 1 million rooms in 122 countries and territories.


Hilton Worldwide Holdings Inc.was founded in 1919 and is headquartered in McLean, Virginia.

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1.b. Last Insights on HLT

Hilton Worldwide Holdings Inc.'s recent performance has been driven by several positive factors. The company's robust leisure travel trends, expanding property footprint, and brand partnerships have contributed to its strong Q1 2025 earnings and revenue growth. The expansion of its hotel portfolio, particularly in Europe and Asia, has also been a significant driver of its success. Additionally, Hilton's profit margins have beaten those of its key hotel peers, further solidifying its position in the industry. The company's dividend has also made a notable recovery, supported by its growing operating cash flow. Furthermore, Hilton's announcement of its second quarter 2025 earnings release date has generated interest among investors, indicating a continued focus on transparency and communication.

1.c. Company Highlights

2. Hilton Worldwide Holdings Inc. Beats Expectations with Strong Q3 2025 Results

Hilton Worldwide Holdings Inc.'s third-quarter 2025 results demonstrate the resilience of its business, with adjusted EBITDA reaching $976 million, up 8% year over year. The company's adjusted EPS exceeded the high end of expectations, coming in at $2.11 relative to estimates at $2.06. System-wide RevPAR decreased 1.1% year over year, with leisure transient RevPAR flat and business transient and group RevPAR declining. Despite this, the company achieved net unit growth of 6.5% in the quarter.

Publication Date: Oct -23

📋 Highlights
  • Adjusted EBITDA Growth:: EBITDA reached $976 million, up 8% YoY, exceeding expectations due to non-RevPAR fee growth and cost control.
  • RevPAR Outlook:: System-wide RevPAR fell 1.1% YoY, but fourth-quarter guidance projects ~1% growth, with full-year flat to +1%.
  • Net Unit Expansion:: Achieved 6.5% Q3 net unit growth, targeting 6.5–7% annually, driven by conversions (40% of growth) and new U.S. developments (+25% starts).
  • Shareholder Returns:: Plans to return $3.3 billion via buybacks and dividends in 2025, with 2026 optimism citing easier comparisons and event-driven demand.
  • AI & Efficiency Gains:: 41 AI use cases deployed to enhance operations and customer experience, supporting cost discipline and fee-per-room growth (+26% 2024, +27% 2025 targets).

Revenue and Margin Performance

The company's revenue performance was impacted by a decline in RevPAR, but this was offset by strong net unit growth and disciplined cost control. Hilton's adjusted EBITDA margin was robust, driven by better-than-expected growth in non-RevPAR-driven fees and cost control. The company's focus on driving operating leverage across the enterprise is expected to continue delivering strong bottom-line performance.

Growth Outlook

Hilton expects RevPAR to be up approximately 1% in the fourth quarter and flat to up 1% for the full year. The company is optimistic about its growth prospects, with a predicted 26% increase in 2024 and 27% in 2025, driven by its development story and a super cycle of underdevelopment in the industry. Analysts estimate next year's revenue growth at 7.9%.

Valuation

Using the current P/E Ratio of 39.15 and EV/EBITDA of 27.53, it appears that Hilton's stock price has factored in significant growth expectations. The company's ROIC of 18.15% indicates a strong return on invested capital, supporting its growth prospects. With a dividend yield of 0.22%, investors can expect a relatively stable income stream.

Operational Highlights

Hilton's development pipeline has more than 515,000 rooms, with expansion in key strategic markets and across chain scales. The company expects to achieve adjusted EBITDA between $3.685 billion and $3.715 billion and diluted EPS adjusted for special items between $7.97 and $8.06 for the full year. Hilton's focus on luxury is expected to drive growth, with the SLH deal adding 600 properties to its portfolio.

Cost Control and Efficiency

The company has made significant progress on cost control, utilizing tools such as AI to drive efficiencies. Hilton has 41 use cases for AI, which are being used to improve processes, drive efficiencies, and enhance the customer experience. This focus on cost control and efficiency is expected to continue delivering strong bottom-line performance.

3. NewsRoom

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Crow Holdings and Hilton Announce $100 Million Renovation and Long-Term Management Agreement for Iconic Hilton Anatole in Dallas

Dec -03

Source: businesswire.com

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How You Should Tackle 'Travel Tuesday.' Expert Views on the Promotion.

Dec -02

Source: investopedia.com

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Hilton Announces Pricing of Senior Notes Offering

Dec -01

Source: businesswire.com

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Advisors Asset Management Inc. Has $1.10 Million Position in Hilton Worldwide Holdings Inc. $HLT

Dec -01

Source: defenseworld.net

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How Hilton's CEO built a global hotel empire

Nov -28

Source: youtube.com

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Newbond Holdings and Conversant Capital Close Acquisition of Two Major San Francisco Hotels

Nov -25

Source: businesswire.com

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Bank Julius Baer & Co. Ltd Zurich Sells 5,876 Shares of Hilton Worldwide Holdings Inc. $HLT

Nov -25

Source: defenseworld.net

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UK's Hilton Food chief executive to step down

Nov -25

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.76%)

6. Segments

Management and Franchise

Expected Growth: 7.5%

Hilton Worldwide Holdings Inc.'s management and franchise segment growth of 7.5% is driven by strong RevPAR (Revenue Per Available Room) growth, increased occupancy rates, and average daily rate (ADR) expansion, fueled by the company's global brand recognition, loyalty program, and strategic asset-light business model.

Ownership

Expected Growth: 8.5%

Hilton Worldwide Holdings Inc.'s ownership growth of 8.5% is driven by strong brand recognition, expanding global presence, and strategic investments in digital transformation. The company's focus on enhancing guest experiences, increasing loyalty program participation, and growing its luxury and lifestyle portfolio also contribute to this growth.

Unallocated Other Revenues

Expected Growth: 6.0%

Hilton Worldwide Holdings Inc.'s Unallocated Other Revenues grew 6.0% due to increased licensing and royalty fees, higher interest income, and other miscellaneous revenue streams. This growth was likely driven by expansion of Hilton's brand portfolio, increased demand for licensing agreements, and effective management of financial assets.

Intersegment Fees Elimination

Expected Growth: 0.0%

The elimination of intersegment fees for Hilton Worldwide Holdings Inc. with 0.0% growth implies that the company's segments are no longer charging each other for shared services or resources. This change likely aims to simplify operations, reduce costs, and increase efficiency, ultimately driving profitability by minimizing internal expenses and maximizing revenue from external customers.

Unallocated Amortization of Contract Acquisition Costs

Expected Growth: 5.0%

Unallocated Amortization of Contract Acquisition Costs from Hilton Worldwide Holdings Inc. growth of 5.0% is driven by increased expenses related to acquiring and maintaining contracts, likely due to expansion efforts and higher marketing costs. This growth indicates investments in customer acquisition and retention strategies, suggesting a focus on long-term revenue growth.

7. Detailed Products

Hilton Hotels & Resorts

Luxury hotels and resorts offering upscale accommodations and amenities

Waldorf Astoria Hotels & Resorts

Luxury hotels and resorts offering luxurious accommodations and personalized services

Conrad Hotels & Resorts

Upscale hotels and resorts offering modern amenities and stylish accommodations

Canopy by Hilton

Boutique hotels offering local experiences and modern amenities

Curio Collection by Hilton

Unique, independent hotels offering authentic experiences

DoubleTree by Hilton

Upscale hotels offering warm hospitality and modern amenities

Tapestry Collection by Hilton

Independent hotels offering unique experiences and modern amenities

Embassy Suites by Hilton

All-suite hotels offering spacious accommodations and amenities

Hilton Garden Inn

Upscale hotels offering modern amenities and comfortable accommodations

Hampton by Hilton

Upper-midscale hotels offering clean, comfortable accommodations and amenities

Tru by Hilton

Midscale hotels offering modern amenities and affordable rates

Homewood Suites by Hilton

Extended-stay hotels offering spacious suites and amenities

Home2 Suites by Hilton

Extended-stay hotels offering modern amenities and spacious suites

8. Hilton Worldwide Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Hilton Worldwide Holdings Inc. faces moderate threat from substitutes, as customers have various options for accommodations, including Airbnb, hostels, and vacation rentals. However, the company's strong brand reputation and loyalty program help to mitigate this threat.

Bargaining Power Of Customers

Hilton Worldwide Holdings Inc. has a large customer base, but individual customers have limited bargaining power due to the company's scale and diversified customer segments.

Bargaining Power Of Suppliers

Hilton Worldwide Holdings Inc. has a diverse supplier base, and no single supplier has significant bargaining power. The company's scale and global presence also give it negotiating power with suppliers.

Threat Of New Entrants

The hotel industry has high barriers to entry, including significant capital requirements and regulatory hurdles. While new entrants may emerge, they are unlikely to pose a significant threat to Hilton Worldwide Holdings Inc.'s market position.

Intensity Of Rivalry

The hotel industry is highly competitive, with many established players competing for market share. Hilton Worldwide Holdings Inc. faces intense rivalry from competitors such as Marriott International, InterContinental Hotels Group, and AccorHotels.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 130.41%
Debt Cost 6.74%
Equity Weight -30.41%
Equity Cost 10.29%
WACC 5.66%
Leverage -428.81%

11. Quality Control: Hilton Worldwide Holdings Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

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Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

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A-Score: 5.4/10

Value: 7.5

Growth: 7.2

Quality: 7.1

Yield: 3.0

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Volatility: 6.3

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Hilton

A-Score: 5.4/10

Value: 3.5

Growth: 7.3

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 9.3

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A-Score: 5.4/10

Value: 5.9

Growth: 7.6

Quality: 6.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

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Marriott

A-Score: 5.3/10

Value: 4.2

Growth: 7.4

Quality: 5.4

Yield: 1.0

Momentum: 5.0

Volatility: 8.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

272.25$

Current Price

272.25$

Potential

-0.00%

Expected Cash-Flows