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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. Delivers Record Adjusted EBITDA and Sustained Growth

Hilton Worldwide Holdings Inc. reported a solid end to 2025 with record adjusted EBITDA of $3.7 billion, up 9% year over year, and system-wide RevPAR growth of 40 basis points. In Q4, system-wide RevPAR increased 50 basis points, driven by strong international performance and solid group demand. The actual EPS came out at $2.08, beating estimates of $2.02. The company returned $3.3 billion to shareholders in 2025, the highest total capital return in its history.

Publication Date: Feb -12

📋 Highlights
  • Record Adjusted EBITDA: Hilton reported $3.7 billion in 2025, a 9% YoY increase.
  • System-Wide RevPAR Growth: Year-over-year growth of 40 bps, with Q4 showing 50 bps driven by international strength and group demand.
  • Shareholder Returns: Returned $3.3 billion in 2025, with $3.5 billion expected in 2026 via buybacks and dividends.
  • 2026 Financial Guidance: Projects $4–4.04 billion in adjusted EBITDA and 1–2% RevPAR growth, with EPS of $8.65–$8.77.
  • Development Pipeline: Added 100,000 rooms in 2025, expanding to 520,000 rooms globally, with 6–7% annual net unit growth anticipated.

Growth Prospects and Guidance

For 2026, Hilton expects system-wide top-line growth of 1% to 2%, with international performance stronger than in the U.S., and RevPAR growth of 1% to 2%. Adjusted EBITDA is expected to be between $4 billion and $4.04 billion, and diluted EPS adjusted for special items is expected to be between $8.65 and $8.77. Analysts estimate next year's revenue growth at 7.7%, indicating a positive outlook for the company.

Investing in AI and Technology

The company is investing heavily in AI, exploring its use in creating efficiencies, distribution, and enhancing the customer experience. Hilton has a modern tech stack, which provides a competitive advantage, and is working with major players like OpenAI, Google, and others to develop connectivity and applications. They expect AI to lead to lower distribution costs and improved customer interactions.

Luxury and Lifestyle Segments

The company's luxury and lifestyle segments are growing, with 1,000 hotels and a large pipeline. As these brands grow and create network effects, they expect a flywheel effect, driving growth and momentum. The lifestyle brands, in particular, are still in the early days, but some are poised to explode, such as Tempo and Motto.

Valuation Metrics

With a P/E Ratio of 51.77 and an EV/EBITDA of 33.63, the market seems to have priced in significant growth expectations. The Dividend Yield is relatively low at 0.18%, but the Free Cash Flow Yield is 3.09%, indicating a reasonable return for investors. The Net Debt / EBITDA ratio is 0.43, suggesting a manageable debt burden.

Development and M&A Strategy

The company has been disciplined about key money, with only 9% of deals involving it, and an average of around $200-300 million per year. Christopher Nassetta characterized the company as an organic growth story, focusing on driving returns through operational performance rather than M&A. He believes this approach allows for intelligent capital allocation, including share buybacks, and aims to sustain growth in the 6-7% range without acquisitions.

3. NewsRoom

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First Look: Amazon tops Walmart; WBD--Netflix saga; oil up

Feb -20

Source: gurufocus.com

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Bill Ackman's Hilton Bet Is Crushing Magnificent Seven Stocks: Here's How Much He's Made Since Q4

Feb -19

Source: benzinga.com

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Hilton Los Cabos Reaffirms Four-Star Rating in Forbes Travel Guide 2026 Star Awards

Feb -18

Source: globenewswire.com

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Mountain Valley Lodge to Close February 16 for Comprehensive Renovation and Conversion to Hampton by Hilton Hailey Sun Valley

Feb -17

Source: businesswire.com

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First Look: WBD waiver; Ackman's Meta bet; Ford-China JV

Feb -17

Source: gurufocus.com

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Crestwood Advisors Group LLC Sells 7,773 Shares of Hilton Worldwide Holdings Inc. $HLT

Feb -17

Source: defenseworld.net

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Assetmark Inc. Lowers Stock Holdings in Hilton Worldwide Holdings Inc. $HLT

Feb -16

Source: defenseworld.net

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Aberdeen Group plc Sells 12,681 Shares of Hilton Worldwide Holdings Inc. $HLT

Feb -16

Source: defenseworld.net

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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PulteGroup

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Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

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Hilton

A-Score: 5.5/10

Value: 3.2

Growth: 7.3

Quality: 6.2

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Quality: 7.1

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Volatility: 6.0

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A-Score: 5.3/10

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Growth: 7.4

Quality: 5.5

Yield: 1.0

Momentum: 6.0

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Growth: 4.3

Quality: 5.9

Yield: 3.0

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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

315.96$

Current Price

315.96$

Potential

-0.00%

Expected Cash-Flows