10-QPeriod: Q1 FY2026

Hilton Worldwide Holdings Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 28, 2026For Securities:HLT

Summary

Hilton Worldwide Holdings Inc. reported a strong first quarter for 2026, demonstrating robust revenue growth and improved profitability. Total revenues increased by 8.8% to $2.94 billion, driven by a significant 11.4% rise in franchise and licensing fees, alongside an 8.0% increase in base and other management fees. This growth is primarily attributed to the expansion of their hotel portfolio and an increase in RevPAR (Revenue per Available Room) across comparable hotels. The company's profitability also saw a substantial uplift, with net income attributable to Hilton stockholders rising by 28.3% to $385 million, leading to diluted earnings per share of $1.66, up from $1.23 in the prior year's quarter. The company's operational focus on its management and franchise segment continues to yield strong results, contributing $908 million in Segment Adjusted EBITDA. While the ownership segment's Adjusted EBITDA was smaller, overall performance indicates effective execution of Hilton's global growth strategy. The company also returned significant capital to shareholders through share repurchases, demonstrating confidence in its financial health and future prospects. With a healthy development pipeline and positive RevPAR trends, Hilton appears well-positioned for continued growth.

Financial Highlights

48 data points
Beta

Revenue

$2.94B

Net Income

$385.00M

13.1% Net Margin

EPS (Diluted)

$1.66

Total Assets

$16.39B

Cash & Equivalents

$564.00M

Free Cash Flow

$609.00M

Financial Statements
Beta
Revenue$2.94B
Operating Expenses$2.26B
Operating Income$678.00M
Net Income$385.00M
EPS (Basic)$1.68
EPS (Diluted)$1.66
Shares Outstanding (Basic)229.00M
Shares Outstanding (Diluted)232.00M

Key Highlights

  • 1Total revenues increased by 8.8% to $2.94 billion in Q1 2026, compared to $2.70 billion in Q1 2025.
  • 2Net income attributable to Hilton stockholders grew by 28.3% to $385 million, with diluted EPS rising to $1.66 from $1.23.
  • 3Franchise and licensing fees saw a substantial increase of 11.4%, indicating strong fee-based business growth.
  • 4System-wide RevPAR increased by 3.6%, driven by improvements in occupancy and Average Daily Rate (ADR) across most regions, particularly benefiting from a favorable earlier spring break timing.
  • 5Segment Adjusted EBITDA for the management and franchise segment increased by 12.8% to $908 million, highlighting the strength of this core business.
  • 6The company repurchased approximately $825 million of its common stock in the first quarter of 2026, underscoring a commitment to returning capital to shareholders.
  • 7The development pipeline remains robust with 3,768 hotels representing 527,000 rooms expected to be added to the system, with a significant portion outside the U.S. and in the management and franchise segment.

Frequently Asked Questions

The primary driver of Hilton's revenue growth is the significant increase in franchise and licensing fees (up 11.4%) and base and other management fees (up 8.0%). This growth is supported by the expansion of their hotel portfolio through new additions and an increase in Revenue per Available Room (RevPAR) driven by higher occupancy and Average Daily Rate (ADR).

Hilton's profitability significantly improved. Net income attributable to Hilton stockholders increased by 28.3% to $385 million, and diluted earnings per share rose to $1.66 from $1.23 in the first quarter of 2025. This reflects strong revenue growth and efficient cost management.

Hilton continues to focus on returning capital to shareholders. In the first quarter of 2026, the company repurchased approximately $825 million of its common stock. They also maintain a robust development pipeline aimed at expanding their fee-based business, which is expected to drive future cash flow for reinvestment and shareholder returns.

While the report highlights strong performance, it also mentions that the current economic environment, including elevated inflation and interest rates, has posed challenges to growth strategy execution, potentially leading to delays in openings and new development. Macroeconomic factors, geopolitical conflicts, and competition are also identified as ongoing risks.