10-QPeriod: Q1 FY2022

Hilton Worldwide Holdings Inc. Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 3, 2022For Securities:HLT

Summary

Hilton Worldwide Holdings Inc. (HLT) reported a strong financial recovery in the first quarter of 2022 compared to the prior year, driven by a significant rebound in travel demand following the pandemic. Total revenues more than doubled to $1.72 billion, a substantial increase from $874 million in Q1 2021, primarily fueled by a surge in franchise and licensing fees, as well as improved performance in owned and leased hotels. The company demonstrated robust operational improvements with system-wide RevPAR increasing by 80.5% year-over-year, indicating a strong recovery in occupancy and average daily rates across most regions, with the exception of Asia Pacific experiencing a more muted growth due to regional restrictions. Net income attributable to Hilton stockholders swung from a loss of $108 million in Q1 2021 to a profit of $212 million in Q1 2022, translating to diluted EPS of $0.75. The company also resumed its share repurchase program in March 2022 and announced a recommencement of quarterly cash dividends, signaling confidence in its financial position and future prospects.

Financial Highlights

49 data points
Beta

Revenue

$1.72B

Net Income

$212.00M

12.3% Net Margin

EPS (Diluted)

$0.75

Total Assets

$15.46B

Cash & Equivalents

$1.43B

Free Cash Flow

$191.00M

Financial Statements
Beta
Revenue$1.72B
Operating Expenses$1.35B
Operating Income$369.00M
Interest Expense$90.00M
Net Income$212.00M
EPS (Basic)$0.76
EPS (Diluted)$0.75
Shares Outstanding (Basic)279.00M
Shares Outstanding (Diluted)282.00M

Key Highlights

  • 1Revenues surged by 97% year-over-year to $1.72 billion, driven by strong recovery in franchise and management fees.
  • 2Net income attributable to Hilton stockholders dramatically improved from a net loss of $108 million in Q1 2021 to a net income of $212 million in Q1 2022.
  • 3Diluted Earnings Per Share (EPS) improved to $0.75 in Q1 2022, compared to a loss of $0.39 in Q1 2021.
  • 4System-wide RevPAR (Revenue Per Available Room) increased by 80.5% compared to Q1 2021, showcasing a strong recovery in demand and pricing power.
  • 5The company resumed its share repurchase program in March 2022, repurchasing approximately 907,000 shares.
  • 6Hilton announced the recommencement of quarterly cash dividends, with the first payment expected in Q2 2022.
  • 7Adjusted EBITDA significantly increased to $448 million from $198 million in the prior year's comparable period, reflecting improved operational performance.

Frequently Asked Questions

Hilton's total revenues for the three months ended March 31, 2022, were $1.72 billion, a substantial increase of 97% compared to $874 million in the same period of 2021. This growth was primarily driven by a strong recovery in travel demand, leading to higher franchise and licensing fees, as well as improved performance from owned and leased hotels.

Hilton experienced a significant turnaround in profitability. The company reported a net income attributable to Hilton stockholders of $212 million for Q1 2022, a stark contrast to a net loss of $108 million in Q1 2021. This translated to a diluted EPS of $0.75 in Q1 2022, compared to a loss per share of $0.39 in Q1 2021.

Hilton continues to expand its global network, with a development pipeline of 2,730 hotels and 410,400 rooms as of March 31, 2022. The company added 55 net new hotels (7,800 rooms) in the first quarter of 2022 and added 176 hotels (22,200 rooms) to its development pipeline. The majority of these pipeline rooms are within the management and franchise segment, indicating a focus on capital-light growth.

As of March 31, 2022, Hilton had $1.51 billion in cash and cash equivalents. The company resumed its share repurchase program in March 2022 and announced the recommencement of quarterly dividends, indicating confidence in its liquidity. Management believes its current cash position and operating cash flow will meet its liquidity requirements for the foreseeable future.