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Hilton
🇺🇸 NYSE:HLT
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Sep 30, 2023

Hilton Q3 2023 Earnings Report

Hilton's third quarter results were reported, exceeding expectations for system-wide RevPAR growth and driving growth across all customer segments.

Key Takeaways

Hilton Worldwide Holdings Inc. reported strong third-quarter results, with diluted EPS at $1.44 and adjusted EPS at $1.67. Net income reached $379 million, and adjusted EBITDA was $834 million. System-wide comparable RevPAR increased by 6.8 percent compared to 2022 and 11.4 percent compared to 2019. The company approved 35,500 new rooms for development and added 15,700 rooms to its system.

Diluted EPS was $1.44 for the third quarter, and diluted EPS, adjusted for special items, was $1.67.

Net income was $379 million for the third quarter.

Adjusted EBITDA was $834 million for the third quarter.

System-wide comparable RevPAR increased 6.8 percent, on a currency neutral basis, for the third quarter compared to the same period in 2022.

Total Revenue
$2.67B
Previous year: $2.37B
+12.9%
EPS
$1.67
Previous year: $1.31
+27.5%
System-wide RevPAR
6.8%
Previous year: 29.9%
-77.3%
Gross Profit
$1.12B
Previous year: $768M
+45.3%
Cash and Equivalents
$779M
Previous year: $1.36B
-42.8%
Free Cash Flow
$652M
Previous year: $663M
-1.7%
Total Assets
$15.2B
Previous year: $15.5B
-2.0%

Hilton

Hilton

Forward Guidance

Hilton provided full-year and fourth-quarter 2023 guidance, including expectations for RevPAR, diluted EPS, net income, and adjusted EBITDA.

Positive Outlook

  • Full year 2023 system-wide RevPAR is expected to increase between 12.0 percent and 12.5 percent on a comparable and currency neutral basis compared to 2022.
  • Full year net income is projected to be between $1,375 million and $1,389 million.
  • Full year Adjusted EBITDA is projected to be between $3,025 million and $3,045 million.
  • Fourth Quarter 2023 System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 4.5 percent and 5.5 percent compared to the fourth quarter of 2022.
  • Fourth Quarter 2023 Net income is projected to be between $374 million and $388 million.

Challenges Ahead

  • Share-based metrics in Hilton's outlook do not include the effect of potential share repurchases after the third quarter.
  • Full year 2023 net unit growth is expected to be approximately 5.0 percent.
  • Full year 2023 general and administrative expenses are projected to be between $390 million and $410 million.
  • Fourth Quarter 2023 Diluted EPS is projected to be between $1.43 and $1.48.
  • Fourth Quarter 2023 Adjusted EBITDA is projected to be between $739 million and $759 million.

Company Overview

Full financial data and analysis

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