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Jun 30, 2023

Hilton Q2 2023 Earnings Report

Hilton's Q2 2023 results were reported, with diluted EPS and net income exceeding guidance, driven by RevPAR growth.

Key Takeaways

Hilton reported strong second-quarter results, exceeding guidance for diluted EPS, net income, and Adjusted EBITDA. System-wide comparable RevPAR increased 12.1 percent compared to the same period in 2022. The company also raised its full-year outlook.

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.

System-wide comparable RevPAR increased 12.1 percent, on a currency neutral basis, for the second quarter compared to the same period in 2022.

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.

Total Revenue
$2.66B
Previous year: $2.24B
+18.8%
EPS
$1.63
Previous year: $1.29
+26.4%
System-wide RevPAR
12.1%
Previous year: 54.3%
-77.7%
Gross Profit
$855M
Previous year: $752M
+13.7%
Cash and Equivalents
$883M
Previous year: $1.25B
-29.6%
Free Cash Flow
$434M
Previous year: $326M
+33.1%
Total Assets
$15.3B
Previous year: $15.4B
-0.6%

Hilton

Hilton

Hilton Revenue by Segment

Forward Guidance

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

Positive Outlook

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income