Hilton Reports Second Quarter Results; Raises Full Year Outlook
Hilton Worldwide Holdings Inc. (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 same period in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 16.1 percent compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR for the 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 same period in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 22.1 percent compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR for the 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 $1.63 compared 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 $679 million, 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 $2.86 compared 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 $1,127 million, respectively, for the six months ended June 30, 2022.
Development
In the second quarter of 2023, Hilton opened 92 new hotels totaling 14,000 rooms and achieved net unit growth of 11,200 rooms. During the quarter, Hilton opened the Conrad Shenzhen, Hilton’s first luxury property in China’s technology hub, and surpassed 150,000 hotel rooms in the Asia Pacific region, which included nearly 50,000 Hampton by Hilton rooms in China. Additionally, continuing to demonstrate the value of our all-suites category, Hilton opened the 600th Home2 Suites by Hilton, one of the fastest growing brands in the industry.
Hilton added over 36,000 rooms to the development pipeline during the second quarter, and, as of June 30, 2023, Hilton’s development pipeline totaled approximately 3,060 hotels representing 440,900 rooms throughout 116 countries and territories, including 29 countries and territories where Hilton did not have any existing hotels. Additionally, of the rooms in the development pipeline, 217,000 of the rooms were under construction and 250,100 of the rooms were located outside of the U.S.
Spark by Hilton, our new premium economy brand launched in January 2023, had approximately 60 hotels in the development pipeline as of June 30, 2023. In May 2023, Hilton launched a new brand in the U.S. under the working title Project H3, an inventive, new apartment-style extended-stay brand positioned to serve the unique needs of the long-stay traveler, including the rapidly expanding workforce travel market.
Balance Sheet and Liquidity
As of June 30, 2023, Hilton had $8.8 billion of long-term debt outstanding, excluding the deduction for deferred financing costs and discount, with a weighted average interest rate of 4.54 percent. Excluding all finance lease liabilities and other debt of Hilton’s consolidated variable interest entities, Hilton had $8.6 billion of long-term debt outstanding with a weighted average interest rate of 4.53 percent and no scheduled maturities until May 2025. As of June 30, 2023, no debt amounts were outstanding under Hilton’s $2.0 billion senior secured revolving credit facility, which had an available borrowing capacity of $1,940 million after considering $60 million of outstanding letters of credit. Total cash and cash equivalents were $883 million as of June 30, 2023, including $77 million of restricted cash and cash equivalents.
During the second quarter of 2023, Hilton repurchased 3.3 million shares of its common stock at a cost of $470 million and an average price per share of $141.96. During the six months ended June 30, 2023, Hilton repurchased 6.5 million shares of its common stock at an average price per share of $140.94, returning $916 million of capital to shareholders. Through July 21, 2023, since the inception of Hilton’s stock repurchase program in March 2017, Hilton repurchased approximately 59.7 million shares of its common stock for approximately $5.9 billion at an average price per share of $99.03. The amount remaining under Hilton’s stock repurchase program is approximately $2.1 billion.
In June 2023, Hilton paid a quarterly cash dividend of $0.15 per share of common stock, for a total of $40 million, bringing total dividend payments for the year to $81 million. In July 2023, Hilton’s board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on or before September 29, 2023 to holders of record of its common stock as of the close of business on August 25, 2023.
Outlook
Share-based metrics in Hilton’s outlook include actual share repurchases to date, but do not include the effect of potential share repurchases hereafter.
Full Year 2023
- System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 10 percent and 12 percent compared to 2022.
- Diluted EPS is projected to be between $5.18 and $5.31.
- Diluted EPS, adjusted for special items, is projected to be between $5.93 and $6.06.
- Net income is projected to be between $1,387 million and $1,422 million.
- Adjusted EBITDA is projected to be between $2,975 million and $3,025 million.
- Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are expected to be approximately $300 million.
- Capital return is projected to be between $2.4 billion and $2.6 billion.
- General and administrative expenses are projected to be between $390 million and $410 million.
- Net unit growth is expected to be approximately 5 percent.
Third Quarter 2023
- System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 4 percent and 6 percent compared to the third quarter of 2022.
- Diluted EPS is projected to be between $1.49 and $1.54.
- Diluted EPS, adjusted for special items, is projected to be between $1.60 and $1.65.
- Net income is projected to be between $395 million and $409 million.
- Adjusted EBITDA is projected to be between $790 million and $810 million.
|
HILTON WORLDWIDE HOLDINGS INC. |
|||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
(in millions, except per share data) |
|||||||||||||||
|
(unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Revenues |
|
|
|
|
|
|
|
||||||||
|
Franchise and licensing fees |
$ |
618 |
|
|
$ |
545 |
|
|
$ |
1,126 |
|
|
$ |
958 |
|
|
Base and other management fees |
|
86 |
|
|
|
75 |
|
|
|
166 |
|
|
|
130 |
|
|
Incentive management fees |
|
69 |
|
|
|
46 |
|
|
|
134 |
|
|
|
80 |
|
|
Owned and leased hotels |
|
341 |
|
|
|
282 |
|
|
|
589 |
|
|
|
432 |
|
|
Other revenues |
|
46 |
|
|
|
25 |
|
|
|
81 |
|
|
|
43 |
|
|
|
|
1,160 |
|
|
|
973 |
|
|
|
2,096 |
|
|
|
1,643 |
|
|
Other revenues from managed and franchised properties |
|
1,500 |
|
|
|
1,267 |
|
|
|
2,857 |
|
|
|
2,318 |
|
|
Total revenues |
|
2,660 |
|
|
|
2,240 |
|
|
|
4,953 |
|
|
|
3,961 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expenses |
|
|
|
|
|
|
|
||||||||
|
Owned and leased hotels |
|
297 |
|
|
|
257 |
|
|
|
548 |
|
|
|
442 |
|
|
Depreciation and amortization |
|
37 |
|
|
|
40 |
|
|
|
74 |
|
|
|
84 |
|
|
General and administrative |
|
111 |
|
|
|
103 |
|
|
|
202 |
|
|
|
194 |
|
|
Other expenses |
|
33 |
|
|
|
11 |
|
|
|
54 |
|
|
|
22 |
|
|
|
|
478 |
|
|
|
411 |
|
|
|
878 |
|
|
|
742 |
|
|
Other expenses from managed and franchised properties |
|
1,508 |
|
|
|
1,231 |
|
|
|
2,903 |
|
|
|
2,252 |
|
|
Total expenses |
|
1,986 |
|
|
|
1,642 |
|
|
|
3,781 |
|
|
|
2,994 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
674 |
|
|
|
598 |
|
|
|
1,172 |
|
|
|
967 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest expense |
|
(111 |
) |
|
|
(99 |
) |
|
|
(227 |
) |
|
|
(189 |
) |
|
Gain (loss) on foreign currency transactions |
|
(6 |
) |
|
|
8 |
|
|
|
(6 |
) |
|
|
4 |
|
|
Loss on investments in unconsolidated affiliate |
|
— |
|
|
|
— |
|
|
|
(92 |
) |
|
|
— |
|
|
Other non-operating income, net |
|
11 |
|
|
|
6 |
|
|
|
23 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income before income taxes |
|
568 |
|
|
|
513 |
|
|
|
870 |
|
|
|
804 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income tax expense |
|
(155 |
) |
|
|
(146 |
) |
|
|
(248 |
) |
|
|
(226 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net income |
|
413 |
|
|
|
367 |
|
|
|
622 |
|
|
|
578 |
|
|
Net loss (income) attributable to noncontrolling interests |
|
(2 |
) |
|
|
1 |
|
|
|
(5 |
) |
|
|
2 |
|
|
Net income attributable to Hilton stockholders |
$ |
411 |
|
|
$ |
368 |
|
|
$ |
617 |
|
|
$ |
580 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
264 |
|
|
|
278 |
|
|
|
265 |
|
|
|
278 |
|
|
Diluted |
|
266 |
|
|
|
280 |
|
|
|
267 |
|
|
|
281 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
1.56 |
|
|
$ |
1.33 |
|
|
$ |
2.33 |
|
|
$ |
2.09 |
|
|
Diluted |
$ |
1.55 |
|
|
$ |
1.32 |
|
|
$ |
2.31 |
|
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cash dividends declared per share |
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.30 |
|
|
$ |
0.15 |
|
|
HILTON WORLDWIDE HOLDINGS INC. |
||||||||||||||||||
|
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS |
||||||||||||||||||
|
(unaudited) |
||||||||||||||||||
|
|
Three Months Ended June 30, |
|||||||||||||||||
|
|
Occupancy |
|
ADR |
|
RevPAR |
|||||||||||||
|
|
2023 |
|
vs. 2022 |
|
2023 |
|
vs. 2022 |
|
2023 |
|
vs. 2022 |
|||||||
|
Region |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
U.S. |
75.9 |
% |
|
1.3 |
% |
pts. |
|
$ |
169.31 |
|
3.8 |
% |
|
$ |
128.51 |
|
5.6 |
% |
|
Americas (excluding U.S.) |
70.7 |
|
|
4.2 |
|
|
|
|
153.60 |
|
15.1 |
|
|
|
108.66 |
|
22.4 |
|
|
Europe |
75.4 |
|
|
4.1 |
|
|
|
|
181.74 |
|
19.3 |
|
|
|
136.96 |
|
26.2 |
|
|
Middle East & Africa |
67.5 |
|
|
7.4 |
|
|
|
|
179.08 |
|
15.9 |
|
|
|
120.85 |
|
30.2 |
|
|
Asia Pacific |
69.9 |
|
|
20.9 |
|
|
|
|
111.88 |
|
25.4 |
|
|
|
78.19 |
|
79.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Brand |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Waldorf Astoria Hotels & Resorts |
65.4 |
% |
|
9.3 |
% |
pts. |
|
$ |
506.43 |
|
0.9 |
% |
|
$ |
331.19 |
|
17.6 |
% |
|
LXR Hotels & Resorts |
48.8 |
|
|
3.1 |
|
|
|
|
488.18 |
|
8.2 |
|
|
|
238.26 |
|
15.6 |
|
|
Conrad Hotels & Resorts |
72.8 |
|
|
13.6 |
|
|
|
|
299.71 |
|
14.4 |
|
|
|
218.27 |
|
40.6 |
|
|
Canopy by Hilton |
72.7 |
|
|
7.8 |
|
|
|
|
227.29 |
|
7.1 |
|
|
|
165.30 |
|
20.0 |
|
|
Hilton Hotels & Resorts |
71.7 |
|
|
7.8 |
|
|
|
|
195.61 |
|
7.1 |
|
|
|
140.29 |
|
20.2 |
|
|
Curio Collection by Hilton |
71.6 |
|
|
5.8 |
|
|
|
|
234.39 |
|
2.1 |
|
|
|
167.80 |
|
11.0 |
|
|
DoubleTree by Hilton |
71.1 |
|
|
4.4 |
|
|
|
|
146.30 |
|
6.3 |
|
|
|
104.09 |
|
13.2 |
|
|
Tapestry Collection by Hilton |
72.3 |
|
|
3.6 |
|
|
|
|
183.21 |
|
5.6 |
|
|
|
132.46 |
|
11.0 |
|
|
Embassy Suites by Hilton |
76.1 |
|
|
2.5 |
|
|
|
|
187.64 |
|
4.3 |
|
|
|
142.78 |
|
7.9 |
|
|
Hilton Garden Inn |
74.2 |
|
|
2.7 |
|
|
|
|
151.71 |
|
4.8 |
|
|
|
112.58 |
|
8.8 |
|
|
Hampton by Hilton |
75.8 |
|
|
3.6 |
|
|
|
|
136.08 |
|
3.6 |
|
|
|
103.13 |
|
8.8 |
|
|
Tru by Hilton |
75.6 |
|
|
1.3 |
|
|
|
|
132.74 |
|
2.9 |
|
|
|
100.30 |
|
4.6 |
|
|
Homewood Suites by Hilton |
81.6 |
|
|
(0.3 |
) |
|
|
|
162.40 |
|
5.5 |
|
|
|
132.59 |
|
5.2 |
|
|
Home2 Suites by Hilton |
81.9 |
|
|
1.0 |
|
|
|
|
145.60 |
|
5.0 |
|
|
|
119.19 |
|
6.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Management and franchise |
74.6 |
% |
|
4.1 |
% |
pts. |
|
$ |
162.16 |
|
5.5 |
% |
|
$ |
121.00 |
|
11.6 |
% |
|
Ownership(1) |
76.2 |
|
|
12.3 |
|
|
|
|
249.09 |
|
19.7 |
|
|
|
189.69 |
|
42.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
System-wide |
74.6 |
% |
|
4.2 |
% |
pts. |
|
$ |
163.47 |
|
5.9 |
% |
|
$ |
122.02 |
|
12.1 |
% |
|
HILTON WORLDWIDE HOLDINGS INC. |
||||||||||||||||||
|
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS |
||||||||||||||||||
|
(unaudited) |
||||||||||||||||||
|
|
Six Months Ended June 30, |
|||||||||||||||||
|
|
Occupancy |
|
ADR |
|
RevPAR |
|||||||||||||
|
|
2023 |
|
vs. 2022 |
|
2023 |
|
vs. 2022 |
|
2023 |
|
vs. 2022 |
|||||||
|
Region |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
U.S. |
72.4 |
% |
|
3.9 |
% |
pts. |
|
$ |
164.74 |
|
6.2 |
% |
|
$ |
119.20 |
|
12.4 |
% |
|
Americas (excluding U.S.) |
68.3 |
|
|
9.5 |
|
|
|
|
150.83 |
|
17.4 |
|
|
|
103.01 |
|
36.2 |
|
|
Europe |
68.8 |
|
|
9.7 |
|
|
|
|
164.28 |
|
20.2 |
|
|
|
113.00 |
|
40.0 |
|
|
Middle East & Africa |
70.8 |
|
|
7.8 |
|
|
|
|
177.66 |
|
16.8 |
|
|
|
125.79 |
|
31.2 |
|
|
Asia Pacific |
67.8 |
|
|
22.5 |
|
|
|
|
113.94 |
|
23.6 |
|
|
|
77.30 |
|
84.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Brand |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Waldorf Astoria Hotels & Resorts |
63.6 |
% |
|
12.5 |
% |
pts. |
|
$ |
532.72 |
|
(3.8 |
)% |
|
$ |
338.85 |
|
19.7 |
% |
|
LXR Hotels & Resorts |
47.4 |
|
|
3.6 |
|
|
|
|
488.72 |
|
4.4 |
|
|
|
231.51 |
|
12.9 |
|
|
Conrad Hotels & Resorts |
71.0 |
|
|
17.4 |
|
|
|
|
291.53 |
|
17.7 |
|
|
|
207.12 |
|
56.0 |
|
|
Canopy by Hilton |
69.0 |
|
|
12.2 |
|
|
|
|
219.95 |
|
8.9 |
|
|
|
151.69 |
|
32.3 |
|
|
Hilton Hotels & Resorts |
68.3 |
|
|
11.9 |
|
|
|
|
190.75 |
|
9.6 |
|
|
|
130.20 |
|
32.7 |
|
|
Curio Collection by Hilton |
69.1 |
|
|
10.1 |
|
|
|
|
232.10 |
|
2.6 |
|
|
|
160.35 |
|
20.1 |
|
|
DoubleTree by Hilton |
67.5 |
|
|
7.1 |
|
|
|
|
142.25 |
|
8.0 |
|
|
|
96.02 |
|
20.8 |
|
|
Tapestry Collection by Hilton |
67.4 |
|
|
5.3 |
|
|
|
|
176.62 |
|
8.7 |
|
|
|
119.01 |
|
17.9 |
|
|
Embassy Suites by Hilton |
72.7 |
|
|
6.1 |
|
|
|
|
182.80 |
|
6.2 |
|
|
|
132.87 |
|
15.9 |
|
|
Hilton Garden Inn |
70.8 |
|
|
5.5 |
|
|
|
|
145.72 |
|
7.2 |
|
|
|
103.10 |
|
16.2 |
|
|
Hampton by Hilton |
72.1 |
|
|
6.0 |
|
|
|
|
130.84 |
|
4.8 |
|
|
|
94.38 |
|
14.3 |
|
|
Tru by Hilton |
71.8 |
|
|
3.5 |
|
|
|
|
127.72 |
|
4.8 |
|
|
|
91.68 |
|
10.3 |
|
|
Homewood Suites by Hilton |
79.2 |
|
|
1.2 |
|
|
|
|
156.31 |
|
7.6 |
|
|
|
123.75 |
|
9.3 |
|
|
Home2 Suites by Hilton |
79.4 |
|
|
2.3 |
|
|
|
|
141.37 |
|
7.0 |
|
|
|
112.24 |
|
10.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Management and franchise |
71.3 |
% |
|
6.8 |
% |
pts. |
|
$ |
157.59 |
|
7.6 |
% |
|
$ |
112.33 |
|
19.0 |
% |
|
Ownership(1) |
69.6 |
|
|
18.9 |
|
|
|
|
228.82 |
|
19.9 |
|
|
|
159.18 |
|
64.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
System-wide |
71.3 |
% |
|
7.0 |
% |
pts. |
|
$ |
158.62 |
|
7.9 |
% |
|
$ |
113.02 |
|
19.7 |
% |
| ____________ | ||||||||||||||
|
(1) |
|
Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest. |
||||||||||||
|
HILTON WORLDWIDE HOLDINGS INC. |
|||||||||||||||
|
PROPERTY SUMMARY |
|||||||||||||||
|
As of June 30, 2023 |
|||||||||||||||
|
|
Owned / Leased(1) |
|
Managed |
|
Franchised |
|
Total |
||||||||
|
|
Properties |
|
Rooms |
|
Properties |
|
Rooms |
|
Properties |
|
Rooms |
|
Properties |
|
Rooms |
|
Waldorf Astoria Hotels & Resorts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
12 |
|
4,487 |
|
— |
|
— |
|
12 |
|
4,487 |
|
Americas (excluding U.S.) |
— |
|
— |
|
3 |
|
422 |
|
— |
|
— |
|
3 |
|
422 |
|
Europe |
2 |
|
463 |
|
4 |
|
898 |
|
— |
|
— |
|
6 |
|
1,361 |
|
Middle East & Africa |
— |
|
— |
|
7 |
|
1,867 |
|
— |
|
— |
|
7 |
|
1,867 |
|
Asia Pacific |
— |
|
— |
|
6 |
|
1,259 |
|
— |
|
— |
|
6 |
|
1,259 |
|
LXR Hotels & Resorts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
— |
|
— |
|
3 |
|
522 |
|
3 |
|
522 |
|
Americas (excluding U.S.) |
— |
|
— |
|
— |
|
— |
|
1 |
|
76 |
|
1 |
|
76 |
|
Europe |
— |
|
— |
|
1 |
|
70 |
|
1 |
|
307 |
|
2 |
|
377 |
|
Middle East & Africa |
— |
|
— |
|
1 |
|
41 |
|
3 |
|
282 |
|
4 |
|
323 |
|
Asia Pacific |
— |
|
— |
|
— |
|
— |
|
1 |
|
114 |
|
1 |
|
114 |
|
Conrad Hotels & Resorts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
6 |
|
2,227 |
|
2 |
|
1,730 |
|
8 |
|
3,957 |
|
Americas (excluding U.S.) |
— |
|
— |
|
3 |
|
787 |
|
— |
|
— |
|
3 |
|
787 |
|
Europe |
— |
|
— |
|
4 |
|
1,155 |
|
1 |
|
107 |
|
5 |
|
1,262 |
|
Middle East & Africa |
1 |
|
614 |
|
4 |
|
1,689 |
|
— |
|
— |
|
5 |
|
2,303 |
|
Asia Pacific |
1 |
|
164 |
|
24 |
|
7,388 |
|
1 |
|
659 |
|
26 |
|
8,211 |
|
Canopy by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
— |
|
— |
|
26 |
|
4,490 |
|
26 |
|
4,490 |
|
Americas (excluding U.S.) |
— |
|
— |
|
2 |
|
272 |
|
1 |
|
184 |
|
3 |
|
456 |
|
Europe |
— |
|
— |
|
1 |
|
123 |
|
4 |
|
917 |
|
5 |
|
1,040 |
|
Middle East & Africa |
— |
|
— |
|
1 |
|
200 |
|
— |
|
— |
|
1 |
|
200 |
|
Asia Pacific |
— |
|
— |
|
4 |
|
614 |
|
— |
|
— |
|
4 |
|
614 |
|
Signia by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
2 |
|
1,814 |
|
— |
|
— |
|
2 |
|
1,814 |
|
Hilton Hotels & Resorts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
58 |
|
43,910 |
|
189 |
|
59,378 |
|
247 |
|
103,288 |
|
Americas (excluding U.S.) |
1 |
|
405 |
|
31 |
|
11,790 |
|
23 |
|
6,788 |
|
55 |
|
18,983 |
|
Europe |
37 |
|
11,135 |
|
43 |
|
14,792 |
|
44 |
|
11,508 |
|
124 |
|
37,435 |
|
Middle East & Africa |
4 |
|
1,705 |
|
39 |
|
13,387 |
|
4 |
|
1,738 |
|
47 |
|
16,830 |
|
Asia Pacific |
5 |
|
2,999 |
|
114 |
|
39,527 |
|
9 |
|
3,557 |
|
128 |
|
46,083 |
|
Curio Collection by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
11 |
|
4,979 |
|
64 |
|
13,098 |
|
75 |
|
18,077 |
|
Americas (excluding U.S.) |
— |
|
— |
|
2 |
|
99 |
|
18 |
|
2,272 |
|
20 |
|
2,371 |
|
Europe |
— |
|
— |
|
6 |
|
516 |
|
30 |
|
4,024 |
|
36 |
|
4,540 |
|
Middle East & Africa |
— |
|
— |
|
4 |
|
741 |
|
2 |
|
557 |
|
6 |
|
1,298 |
|
Asia Pacific |
— |
|
— |
|
4 |
|
773 |
|
2 |
|
248 |
|
6 |
|
1,021 |
|
DoubleTree by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
31 |
|
10,087 |
|
348 |
|
79,102 |
|
379 |
|
89,189 |
|
Americas (excluding U.S.) |
— |
|
— |
|
3 |
|
587 |
|
38 |
|
7,698 |
|
41 |
|
8,285 |
|
Europe |
— |
|
— |
|
17 |
|
4,211 |
|
110 |
|
19,195 |
|
127 |
|
23,406 |
|
Middle East & Africa |
— |
|
— |
|
19 |
|
5,242 |
|
5 |
|
996 |
|
24 |
|
6,238 |
|
Asia Pacific |
— |
|
— |
|
85 |
|
22,592 |
|
8 |
|
2,101 |
|
93 |
|
24,693 |
|
HILTON WORLDWIDE HOLDINGS INC. |
|||||||||||||||
|
PROPERTY SUMMARY (continued) |
|||||||||||||||
|
As of June 30, 2023 |
|||||||||||||||
|
|
Owned / Leased(1) |
|
Managed |
|
Franchised |
|
Total |
||||||||
|
|
Properties |
|
Rooms |
|
Properties |
|
Rooms |
|
Properties |
|
Rooms |
|
Properties |
|
Rooms |
|
Tapestry Collection by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
— |
|
— |
|
87 |
|
10,512 |
|
87 |
|
10,512 |
|
Americas (excluding U.S.) |
— |
|
— |
|
1 |
|
138 |
|
9 |
|
1,122 |
|
10 |
|
1,260 |
|
Europe |
— |
|
— |
|
— |
|
— |
|
9 |
|
524 |
|
9 |
|
524 |
|
Middle East & Africa |
— |
|
— |
|
1 |
|
50 |
|
— |
|
— |
|
1 |
|
50 |
|
Asia Pacific |
— |
|
— |
|
2 |
|
382 |
|
1 |
|
175 |
|
3 |
|
557 |
|
Embassy Suites by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
37 |
|
9,943 |
|
219 |
|
49,225 |
|
256 |
|
59,168 |
|
Americas (excluding U.S.) |
— |
|
— |
|
2 |
|
504 |
|
7 |
|
1,829 |
|
9 |
|
2,333 |
|
Middle East & Africa |
— |
|
— |
|
— |
|
— |
|
1 |
|
151 |
|
1 |
|
151 |
|
Motto by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
— |
|
— |
|
3 |
|
871 |
|
3 |
|
871 |
|
Americas (excluding U.S.) |
— |
|
— |
|
— |
|
— |
|
1 |
|
115 |
|
1 |
|
115 |
|
Europe |
— |
|
— |
|
— |
|
— |
|
1 |
|
108 |
|
1 |
|
108 |
|
Hilton Garden Inn |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
6 |
|
689 |
|
736 |
|
101,529 |
|
742 |
|
102,218 |
|
Americas (excluding U.S.) |
— |
|
— |
|
12 |
|
1,838 |
|
53 |
|
7,952 |
|
65 |
|
9,790 |
|
Europe |
— |
|
— |
|
13 |
|
2,524 |
|
67 |
|
10,712 |
|
80 |
|
13,236 |
|
Middle East & Africa |
— |
|
— |
|
17 |
|
3,555 |
|
3 |
|
474 |
|
20 |
|
4,029 |
|
Asia Pacific |
— |
|
— |
|
66 |
|
14,151 |
|
9 |
|
1,502 |
|
75 |
|
15,653 |
|
Hampton by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
22 |
|
2,858 |
|
2,322 |
|
229,921 |
|
2,344 |
|
232,779 |
|
Americas (excluding U.S.) |
— |
|
— |
|
12 |
|
1,537 |
|
117 |
|
14,166 |
|
129 |
|
15,703 |
|
Europe |
— |
|
— |
|
16 |
|
2,697 |
|
111 |
|
17,423 |
|
127 |
|
20,120 |
|
Middle East & Africa |
— |
|
— |
|
5 |
|
1,459 |
|
— |
|
— |
|
5 |
|
1,459 |
|
Asia Pacific |
— |
|
— |
|
— |
|
— |
|
306 |
|
48,663 |
|
306 |
|
48,663 |
|
Tru by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
— |
|
— |
|
238 |
|
23,227 |
|
238 |
|
23,227 |
|
Americas (excluding U.S.) |
— |
|
— |
|
— |
|
— |
|
4 |
|
453 |
|
4 |
|
453 |
|
Homewood Suites by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
9 |
|
1,131 |
|
502 |
|
57,382 |
|
511 |
|
58,513 |
|
Americas (excluding U.S.) |
— |
|
— |
|
3 |
|
406 |
|
24 |
|
2,688 |
|
27 |
|
3,094 |
|
Home2 Suites by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
— |
|
— |
|
2 |
|
210 |
|
564 |
|
59,063 |
|
566 |
|
59,273 |
|
Americas (excluding U.S.) |
— |
|
— |
|
— |
|
— |
|
9 |
|
952 |
|
9 |
|
952 |
|
Asia Pacific |
— |
|
— |
|
— |
|
— |
|
33 |
|
4,953 |
|
33 |
|
4,953 |
|
Other |
— |
|
— |
|
3 |
|
1,322 |
|
6 |
|
1,436 |
|
9 |
|
2,758 |
|
Total hotels |
51 |
|
17,485 |
|
781 |
|
243,940 |
|
6,380 |
|
868,776 |
|
7,212 |
|
1,130,201 |
|
Hilton Grand Vacations(2) |
— |
|
— |
|
— |
|
— |
|
83 |
|
14,648 |
|
83 |
|
14,648 |
|
Total system |
51 |
|
17,485 |
|
781 |
|
243,940 |
|
6,463 |
|
883,424 |
|
7,295 |
|
1,144,849 |
| ____________ | ||||||||||||||
|
(1) |
|
Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest. |
||||||||||||
|
(2) |
|
Includes properties under our timeshare brands including Hilton Club, Hilton Grand Vacations Club and Hilton Vacation Club. |
||||||||||||
| HILTON WORLDWIDE HOLDINGS INC. | ||||||||||||
|
CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS |
||||||||||||
|
(dollars in millions) |
||||||||||||
|
(unaudited) |
||||||||||||
|
|
Three Months Ended |
|
|
|||||||||
|
|
June 30, |
Increase / (Decrease) |
||||||||||
|
|
2023 |
2022 |
$ |
% |
||||||||
|
Capital expenditures for property and equipment(2) |
$ |
30 |
|
$ |
7 |
|
23 |
|
NM(1) |
|||
|
Capitalized software costs(3) |
|
23 |
|
|
15 |
|
8 |
|
53.3 |
|||
|
Total capital expenditures |
|
53 |
|
|
22 |
|
31 |
|
NM(1) |
|||
|
Contract acquisition costs, net of refunds(4) |
|
34 |
|
|
26 |
|
8 |
|
30.8 |
|||
|
Total capital expenditures and contract acquisition costs |
$ |
87 |
|
$ |
48 |
|
39 |
|
81.3 |
|||
|
|
||||||||||||
|
|
Six Months Ended |
|
|
|||||||||
|
|
June 30, |
Increase / (Decrease) |
||||||||||
|
|
2023 |
2022 |
$ |
% |
||||||||
|
Capital expenditures for property and equipment(2) |
$ |
74 |
|
$ |
11 |
|
63 |
|
NM(1) |
|||
|
Capitalized software costs(3) |
|
42 |
|
|
25 |
|
17 |
|
68.0 |
|||
|
Total capital expenditures |
|
116 |
|
|
36 |
|
80 |
|
NM(1) |
|||
|
Contract acquisition costs, net of refunds(4) |
|
139 |
|
|
41 |
|
98 |
|
NM(1) |
|||
|
Total capital expenditures and contract acquisition costs |
$ |
255 |
$ |
77 |
178 |
NM(1) |
||||||
| ____________ | ||||||||||||||
|
(1) |
Fluctuation in terms of percentage change is not meaningful. |
|||||||||||||
|
(2) |
Represents expenditures for hotels, corporate and other property and equipment, which include amounts reimbursed by third parties of $2 million and $1 million for the three months ended June 30, 2023 and 2022, respectively, and $4 million and $2 million for the six months ended June 30, 2023 and 2022, respectively. Excludes expenditures for FF&E replacement reserves of $15 million for both the three months ended June 30, 2023 and 2022, and $23 million and $27 million for the six months ended June 30, 2023 and 2022, respectively. |
|||||||||||||
|
(3) |
Includes $21 million and $14 million of expenditures that were reimbursed to us by third parties for the three months ended June 30, 2023 and 2022, respectively, and $39 million and $23 million for the six months ended June 30, 2023 and 2022, respectively. |
|||||||||||||
|
(4) |
The increase during the period was due to the timing of certain strategic hotel developments supporting Hilton’s growth. |
|||||||||||||
|
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 |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Net income attributable to Hilton stockholders, as reported |
$ |
411 |
|
|
$ |
368 |
|
|
$ |
617 |
|
|
$ |
580 |
|
|
Diluted EPS, as reported |
$ |
1.55 |
|
|
$ |
1.32 |
|
|
$ |
2.31 |
|
|
$ |
2.07 |
|
|
Special items: |
|
|
|
|
|
|
|
||||||||
|
Net other expenses (revenues) from managed and franchised properties |
$ |
8 |
|
|
$ |
(36 |
) |
|
$ |
46 |
|
|
$ |
(66 |
) |
|
Purchase accounting amortization(1) |
|
11 |
|
|
|
11 |
|
|
|
22 |
|
|
|
23 |
|
|
Loss on investments in unconsolidated affiliate(2) |
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
— |
|
|
FF&E replacement reserves |
|
15 |
|
|
|
15 |
|
|
|
23 |
|
|
|
27 |
|
|
Tax-related adjustments(3) |
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
Other adjustments(4) |
|
4 |
|
|
|
— |
|
|
|
9 |
|
|
|
(10 |
) |
|
Total special items before taxes |
|
30 |
|
|
|
(10 |
) |
|
|
184 |
|
|
|
(26 |
) |
|
Income tax benefit (expense) on special items |
|
(9 |
) |
|
|
3 |
|
|
|
(36 |
) |
|
|
8 |
|
|
Total special items after taxes |
$ |
21 |
|
|
$ |
(7 |
) |
|
$ |
148 |
|
|
$ |
(18 |
) |
|
Net income, adjusted for special items |
$ |
432 |
|
|
$ |
361 |
|
|
$ |
765 |
|
|
$ |
562 |
|
|
Diluted EPS, adjusted for special items |
$ |
1.63 |
|
|
$ |
1.29 |
|
|
$ |
2.86 |
|
|
$ |
2.00 |
|
| ____________ | ||||||||||||||
|
(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 will be fully amortized during 2023. |
||||||||||||
|
(2) |
|
Amount includes losses recognized related to equity and debt financing that Hilton had previously provided to an unconsolidated affiliate with underlying investments in hotels that Hilton currently or in the future will manage or franchise. |
||||||||||||
|
(3) |
|
Amounts include income tax expenses (benefits) related to the enactment of new tax laws and certain changes in unrecognized tax benefits. |
||||||||||||
|
(4) |
|
Amounts for the three months ended June 30, 2023 and the six months ended June 30, 2023 and 2022 include net losses (gains) related to certain of Hilton’s investments in unconsolidated affiliates, other than the loss included separately in “loss on investments in unconsolidated affiliate,” which were recognized in other non-operating income, net. |
||||||||||||
|
HILTON WORLDWIDE HOLDINGS INC. |
|||||||||||||||
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
|
NET INCOME MARGIN AND |
|||||||||||||||
|
(dollars in millions) |
|||||||||||||||
|
(unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Net income |
$ |
413 |
|
|
$ |
367 |
|
|
$ |
622 |
|
|
$ |
578 |
|
|
Interest expense |
|
111 |
|
|
|
99 |
|
|
|
227 |
|
|
|
189 |
|
|
Income tax expense |
|
155 |
|
|
|
146 |
|
|
|
248 |
|
|
|
226 |
|
|
Depreciation and amortization expenses |
|
37 |
|
|
|
40 |
|
|
|
74 |
|
|
|
84 |
|
|
EBITDA |
|
716 |
|
|
|
652 |
|
|
|
1,171 |
|
|
|
1,077 |
|
|
Loss (gain) on foreign currency transactions |
|
6 |
|
|
|
(8 |
) |
|
|
6 |
|
|
|
(4 |
) |
|
Loss on investments in unconsolidated affiliate(1) |
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
— |
|
|
FF&E replacement reserves |
|
15 |
|
|
|
15 |
|
|
|
23 |
|
|
|
27 |
|
|
Share-based compensation expense |
|
52 |
|
|
|
47 |
|
|
|
85 |
|
|
|
84 |
|
|
Amortization of contract acquisition costs |
|
11 |
|
|
|
10 |
|
|
|
21 |
|
|
|
18 |
|
|
Net other expenses (revenues) from managed and franchised properties |
|
8 |
|
|
|
(36 |
) |
|
|
46 |
|
|
|
(66 |
) |
|
Other adjustments(2) |
|
3 |
|
|
|
(1 |
) |
|
|
8 |
|
|
|
(9 |
) |
|
Adjusted EBITDA |
$ |
811 |
|
$ |
679 |
|
|
$ |
1,452 |
|
$ |
1,127 |
|
||
| ____________ | ||||||||||||||
|
(1) |
|
Amount includes losses recognized related to equity and debt financing that Hilton had previously provided to an unconsolidated affiliate with underlying investments in hotels that Hilton currently or in the future will manage or franchise. |
||||||||||||
|
(2) |
|
Amounts for the three months ended June 30, 2023 and six months ended June 30, 2023 and 2022 include net losses (gains) related to certain of Hilton’s investments in unconsolidated affiliates, other than the loss included separately in “loss on investments in unconsolidated affiliate.” All periods include severance and other items. |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Total revenues, as reported |
$ |
2,660 |
|
|
$ |
2,240 |
|
|
$ |
4,953 |
|
|
$ |
3,961 |
|
|
Add: amortization of contract acquisition costs |
|
11 |
|
|
|
10 |
|
|
|
21 |
|
|
|
18 |
|
|
Less: other revenues from managed and franchised properties |
|
(1,500 |
) |
|
|
(1,267 |
) |
|
|
(2,857 |
) |
|
|
(2,318 |
) |
|
Total revenues, as adjusted |
$ |
1,171 |
|
|
$ |
983 |
|
|
$ |
2,117 |
|
|
$ |
1,661 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
413 |
|
|
$ |
367 |
|
|
$ |
622 |
|
|
$ |
578 |
|
|
Net income margin |
|
15.5 |
% |
|
|
16.4 |
% |
|
|
12.6 |
% |
|
|
14.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDA |
$ |
811 |
|
|
$ |
679 |
|
|
$ |
1,452 |
|
|
$ |
1,127 |
|
|
Adjusted EBITDA margin |
|
69.3 |
% |
|
|
69.1 |
% |
|
|
68.6 |
% |
|
|
67.9 |
% |
|
HILTON WORLDWIDE HOLDINGS INC. |
|||||||
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES |
|||||||
|
LONG-TERM DEBT TO NET INCOME RATIO AND |
|||||||
|
(dollars in millions) |
|||||||
|
(unaudited) |
|||||||
|
|
June 30, |
|
December 31, |
||||
|
|
2023 |
|
2022 |
||||
|
Long-term debt, including current maturities |
$ |
8,731 |
|
|
$ |
8,747 |
|
|
Add: unamortized deferred financing costs and discount |
|
67 |
|
|
|
73 |
|
|
Long-term debt, including current maturities and excluding the deduction for unamortized deferred financing costs and discount |
|
8,798 |
|
|
|
8,820 |
|
|
Less: cash and cash equivalents |
|
(806 |
) |
|
|
(1,209 |
) |
|
Less: restricted cash and cash equivalents |
|
(77 |
) |
|
|
(77 |
) |
|
Net debt |
$ |
7,915 |
|
|
$ |
7,534 |
|
|
|
|
|
|
||||
|
|
Six Months Ended |
|
Year Ended |
|
TTM Ended |
||||||||||
|
|
June 30, |
|
December 31, |
|
June 30, |
||||||||||
|
|
2023 |
|
2022 |
|
2022 |
|
2023 |
||||||||
|
Net income |
$ |
622 |
|
|
$ |
578 |
|
|
$ |
1,257 |
|
|
$ |
1,301 |
|
|
Interest expense |
|
227 |
|
|
|
189 |
|
|
|
415 |
|
|
|
453 |
|
|
Income tax expense |
|
248 |
|
|
|
226 |
|
|
|
477 |
|
|
|
499 |
|
|
Depreciation and amortization expenses |
|
74 |
|
|
|
84 |
|
|
|
162 |
|
|
|
152 |
|
|
EBITDA |
|
1,171 |
|
|
|
1,077 |
|
|
|
2,311 |
|
|
|
2,405 |
|
|
Loss (gain) on foreign currency transactions |
|
6 |
|
|
|
(4 |
) |
|
|
(5 |
) |
|
|
5 |
|
|
Loss on investments in unconsolidated affiliate(1) |
|
92 |
|
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
FF&E replacement reserves |
|
23 |
|
|
|
27 |
|
|
|
54 |
|
|
|
50 |
|
|
Share-based compensation expense |
|
85 |
|
|
|
84 |
|
|
|
162 |
|
|
|
163 |
|
|
Amortization of contract acquisition costs |
|
21 |
|
|
|
18 |
|
|
|
38 |
|
|
|
41 |
|
|
Net other expenses (revenues) from managed and franchised properties |
|
46 |
|
|
|
(66 |
) |
|
|
39 |
|
|
|
151 |
|
|
Other adjustments(2) |
|
8 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
17 |
|
|
Adjusted EBITDA |
$ |
1,452 |
|
$ |
1,127 |
|
|
$ |
2,599 |
|
|
$ |
2,924 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Long-term debt |
|
|
|
|
|
|
$ |
8,731 |
|
||||||
|
Long-term debt to net income ratio |
|
|
|
|
|
|
|
6.7 |
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net debt |
|
|
|
|
|
|
$ |
7,915 |
|
||||||
|
Net debt to Adjusted EBITDA ratio |
|
|
|
|
|
|
|
2.7 |
|||||||
| ____________ | ||||||||||||||
|
(1) |
|
Amount includes losses recognized related to equity and debt financing that Hilton had previously provided to an unconsolidated affiliate with underlying investments in hotels that Hilton currently or in the future will manage or franchise. |
||||||||||||
|
(2) |
|
Amount for the year ended December 31, 2022 was less than $1 million. All periods include net losses (gains) related to certain of Hilton’s investments in unconsolidated affiliates, other than the loss included separately in “loss on investments in unconsolidated affiliate,” severance and other items. |
||||||||||||
|
HILTON WORLDWIDE HOLDINGS INC. |
|||||||
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES |
|||||||
|
OUTLOOK: NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS |
|||||||
|
(in millions, except per share data) |
|||||||
|
(unaudited) |
|||||||
|
|
Three Months Ending |
||||||
|
|
September 30, 2023 |
||||||
|
|
Low Case |
|
High Case |
||||
|
Net income attributable to Hilton stockholders |
$ |
392 |
|
|
$ |
406 |
|
|
Diluted EPS(1) |
$ |
1.49 |
|
|
$ |
1.54 |
|
|
Special items(2): |
|
|
|
||||
|
Purchase accounting amortization |
$ |
11 |
|
|
$ |
11 |
|
|
FF&E replacement reserves |
|
24 |
|
|
|
24 |
|
|
Total special items before taxes |
|
35 |
|
|
|
35 |
|
|
Income tax expense on special items |
|
(5 |
) |
|
|
(5 |
) |
|
Total special items after taxes |
$ |
30 |
|
|
$ |
30 |
|
|
Net income, adjusted for special items |
$ |
422 |
|
|
$ |
436 |
|
|
Diluted EPS, adjusted for special items(1) |
$ |
1.60 |
|
|
$ |
1.65 |
|
|
|
Year Ending |
||||||
|
|
December 31, 2023 |
||||||
|
|
Low Case |
|
High Case |
||||
|
Net income attributable to Hilton stockholders |
$ |
1,376 |
|
|
$ |
1,411 |
|
|
Diluted EPS(1) |
$ |
5.18 |
|
|
$ |
5.31 |
|
|
Special items(2): |
|
|
|
||||
|
Net other expenses from managed and franchised properties |
$ |
46 |
|
|
$ |
46 |
|
|
Purchase accounting amortization |
|
38 |
|
|
|
38 |
|
|
Loss on investments in unconsolidated affiliate |
|
92 |
|
|
|
92 |
|
|
FF&E replacement reserves |
|
66 |
|
|
|
66 |
|
|
Tax-related adjustments |
|
(8 |
) |
|
|
(8 |
) |
|
Other adjustments |
|
9 |
|
|
|
9 |
|
|
Total special items before taxes |
|
243 |
|
|
|
243 |
|
|
Income tax expense on special items |
|
(43 |
) |
|
|
(43 |
) |
|
Total special items after taxes |
$ |
200 |
|
|
$ |
200 |
|
|
Net income, adjusted for special items |
$ |
1,576 |
|
|
$ |
1,611 |
|
|
Diluted EPS, adjusted for special items(1) |
$ |
5.93 |
|
|
$ |
6.06 |
|
| ____________ | ||||||||||||||
|
(1) |
|
Does not include the effect of potential share repurchases. |
||||||||||||
|
(2) |
|
See “—Net Income and Diluted EPS, Adjusted for Special Items” for details of these special items. |
||||||||||||
|
HILTON WORLDWIDE HOLDINGS INC. |
|||||||
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES |
|||||||
|
OUTLOOK: ADJUSTED EBITDA |
|||||||
|
(in millions) |
|||||||
|
(unaudited) |
|||||||
|
|
Three Months Ending |
||||||
|
|
September 30, 2023 |
||||||
|
|
Low Case |
|
High Case |
||||
|
Net income |
$ |
395 |
|
|
$ |
409 |
|
|
Interest expense |
|
110 |
|
|
|
110 |
|
|
Income tax expense |
|
158 |
|
|
|
164 |
|
|
Depreciation and amortization expenses |
|
40 |
|
|
|
40 |
|
|
EBITDA |
|
703 |
|
|
|
723 |
|
|
FF&E replacement reserves |
|
24 |
|
|
|
24 |
|
|
Share-based compensation expense |
|
43 |
|
|
|
43 |
|
|
Amortization of contract acquisition costs |
|
11 |
|
|
|
11 |
|
|
Other adjustments(1) |
|
9 |
|
|
|
9 |
|
|
Adjusted EBITDA |
$ |
790 |
|
|
$ |
810 |
|
|
|
Year Ending |
||||||
|
|
December 31, 2023 |
||||||
|
|
Low Case |
|
High Case |
||||
|
Net income |
$ |
1,387 |
|
|
$ |
1,422 |
|
|
Interest expense |
|
453 |
|
|
|
453 |
|
|
Income tax expense |
|
551 |
|
|
|
566 |
|
|
Depreciation and amortization expenses |
|
146 |
|
|
|
146 |
|
|
EBITDA |
|
2,537 |
|
|
|
2,587 |
|
|
Loss on foreign currency transactions |
|
6 |
|
|
|
6 |
|
|
Loss on investments in unconsolidated affiliate |
|
92 |
|
|
|
92 |
|
|
FF&E replacement reserves |
|
66 |
|
|
|
66 |
|
|
Share-based compensation expense |
|
160 |
|
|
|
160 |
|
|
Amortization of contract acquisition costs |
|
43 |
|
|
|
43 |
|
|
Net other expenses from managed and franchised properties |
|
46 |
|
|
|
46 |
|
|
Other adjustments(1) |
|
25 |
|
|
|
25 |
|
|
Adjusted EBITDA |
$ |
2,975 |
|
$ |
3,025 |
||
| ____________ | ||||||||||||||
|
(1) |
|
Includes adjustments for severance and other items. See “—Net Income Margin and Adjusted EBITDA and Adjusted EBITDA Margin” for details of these adjustments. |
||||||||||||