10-KPeriod: FY2023

Hilton Worldwide Holdings Inc. Annual Report, Year Ended Dec 31, 2023

Filed February 7, 2024For Securities:HLT

Summary

Hilton Worldwide Holdings Inc. reported a robust performance for the fiscal year ended December 31, 2023, with strong growth across its management and franchise segments. The company expanded its global footprint, adding 353 net new hotels and 53,100 rooms, reflecting a 4.9% net unit growth. Hilton Honors, its loyalty program, saw a significant 19% increase in membership, reaching 180 million members, which is a key driver of customer retention and repeat business. The financial results were positively impacted by a broad-based increase in revenue per available room (RevPAR) across all regions, driven by both higher average daily rates (ADR) and increased occupancy, particularly in the Asia Pacific region which saw substantial growth. The company's strategic focus on its fee-based management and franchise business model continues to yield strong returns, requiring minimal capital investment from Hilton. Hilton also demonstrated effective capital allocation by repurchasing approximately $2.3 billion of its common stock during the year.

Financial Highlights

52 data points
Beta

Revenue

$10.23B

Net Income

$1.14B

11.1% Net Margin

EPS (Diluted)

$4.33

Total Assets

$15.40B

Cash & Equivalents

$800.00M

Free Cash Flow

$1.79B

Financial Statements
Beta
Revenue$10.23B
Operating Expenses$8.01B
Operating Income$2.23B
Interest Expense$464.00M
Net Income$1.14B
EPS (Basic)$4.36
EPS (Diluted)$4.33
Shares Outstanding (Basic)262.00M
Shares Outstanding (Diluted)264.00M

Key Highlights

  • 1Net unit growth of 4.9% with 353 net new hotels and 53,100 rooms added in 2023.
  • 2Hilton Honors loyalty program membership grew 19% to 180 million members.
  • 3All regions showed RevPAR improvement, with Asia Pacific leading with a 58.7% increase.
  • 4Franchise and licensing fees increased by 14.6%, and total management fees rose by 25.7% due to higher RevPAR and new hotel additions.
  • 5Owned and leased hotels revenue increased by 15.6%, driven by a 36.1% RevPAR increase in comparable owned and leased hotels.
  • 6Repurchased approximately 15.6 million shares of common stock for $2.3 billion.
  • 7Achieved Adjusted EBITDA of $3,089 million, a 19% increase from the previous year.

Frequently Asked Questions

In 2023, Hilton demonstrated strong financial performance with total revenues of $10.235 billion, a significant increase from $8.773 billion in 2022. Net income was $1.151 billion. Adjusted EBITDA reached $3.089 billion, up 19% from the prior year, driven by broad-based RevPAR growth across all regions and strong performance in the management and franchise segments.

Hilton's development pipeline remained robust in 2023, with 395 hotels and 62,900 rooms opening, resulting in 353 net additions and 53,100 net new rooms. The company's development pipeline at the end of the year consisted of 3,274 hotels with 462,400 rooms, primarily focused on the management and franchise segment.

As of December 31, 2023, Hilton's total debt was approximately $9.3 billion. The company had $875 million in total cash and cash equivalents. Hilton's senior secured revolving credit facility had an available borrowing capacity of $1,913 million, with no debt outstanding under the facility at year-end. The company believes its liquidity position is sufficient to meet its operating and other expenditures for the foreseeable future.

The increase in RevPAR across all regions was driven by both higher Average Daily Rates (ADR) and improved occupancy. Group business showed particularly strong RevPAR improvement. The Asia Pacific region saw the most significant RevPAR growth, largely due to the removal of travel restrictions and a strong rebound in business travel.