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 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.

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