Hilton Worldwide Posts Strong First Quarter 2024 Results, Expands Portfolio

Hilton Worldwide Holdings Inc. has released its financial outcomes for the first quarter of 2024, revealing robust growth and strategic expansions. Key financial highlights include a noteworthy earnings per share (EPS) of $1.04 and an adjusted EPS of $1.53 after accounting for special items. The company’s net income stood at $268 million, with an adjusted EBITDA of $750 million.

Performance and Growth Metrics

Hilton’s performance this quarter reflects a positive trajectory, with a system-wide comparable revenue per available room (RevPAR) increasing by two percent on a currency-neutral basis year-over-year. This growth is backed by a record-breaking expansion in their room development pipeline, which now boasts 472,300 rooms, marking a 10 percent increase from the same period last year.

Expansion Highlights

The company has added 16,800 rooms to its system in the first quarter alone, culminating in a net addition of 14,200 rooms which contributed to a 5.6 percent net unit growth. Notably, Hilton greenlit the development of 29,800 new rooms during the quarter, setting a new record for its growth pipeline.

Strategic Acquisitions and Investments

Adding to its strategic initiatives, Hilton announced the acquisition of the Graduate Hotels brand, planning to add approximately 35 franchised hotels to its portfolio in the second quarter. Moreover, the company recently acquired a controlling financial interest in the Sydell Group, owner of the NoMad brand, a move that marks Hilton’s significant entry into the luxury lifestyle segment and opens up further luxury expansion opportunities.

Financial Stewardship

Hilton continues to demonstrate strong financial stewardship, evidenced by its repurchase of 3.4 million shares of common stock in the first quarter. The total capital return for the quarter reached $701 million, with a year-to-date return of $908 million through April. The company also successfully issued $1.0 billion of senior notes in March, strengthening its financial position.

Forward-Looking Statements

Looking ahead, Hilton anticipates a system-wide RevPAR increase of two to four percent for the full year 2024 on a comparable and currency-neutral basis. The expected net income for the year is projected to range between $1,586 million and $1,621 million, with adjusted EBITDA predicted between $3,375 million and $3,425 million. Additionally, the company expects to return approximately $3.0 billion to shareholders in 2024.

These results and projections underscore Hilton’s continued success in navigating the competitive hospitality market, leveraging strategic growth opportunities, and delivering value to shareholders. As Hilton expands its global footprint and enhances its luxury offerings, it remains well-positioned for sustained growth in the upcoming quarters.