Hilton Worldwide Holdings Inc. (HLT) Bundle
A Brief History of Hilton Worldwide Holdings Inc.
Company Overview
As of 2024, Hilton Worldwide Holdings Inc. operates a portfolio of 7,100 properties with over 1.1 million rooms in 123 countries and territories. The company is a leading global hospitality company, offering a range of services across its various brands.
Financial Performance
For the three months ended September 30, 2024, Hilton reported total revenues of $2,867 million, an increase from $2,673 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $8,391 million, compared to $7,626 million in 2023.
| Financial Metrics | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Total Revenues | $2,867 | $2,673 | $8,391 | $7,626 |
| Net Income | $344 | $379 | $1,034 | $1,001 |
| EBITDA | $668 | $701 | $1,966 | $1,872 |
| Diluted EPS | $1.38 | $1.44 | $4.09 | $3.74 |
Revenue Breakdown
The revenue streams for Hilton in the third quarter of 2024 were primarily derived from franchise and licensing fees, management fees, and income from owned and leased hotels. Franchise and licensing fees grew to $698 million, up from $643 million in Q3 2023. Management fees also saw an increase, contributing significantly to the overall revenue.
| Revenue Sources | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Franchise and Licensing Fees | $698 | $643 |
| Base and Other Management Fees | $88 | $81 |
| Owned and Leased Hotels | $330 | $335 |
Operational Metrics
In Q3 2024, the average daily rate (ADR) across Hilton properties was $169.59, reflecting a 0.8% increase from the previous year. Revenue per available room (RevPAR) also rose by 1.0% to $127.83, driven by improved occupancy rates.
| Operational Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Daily Rate (ADR) | $169.59 | $167.83 |
| Revenue per Available Room (RevPAR) | $127.83 | $123.27 |
| Occupancy Rate | 76.1% | 75.1% |
Debt and Liquidity
As of September 30, 2024, Hilton's total indebtedness stood at approximately $11.3 billion, with no amounts outstanding under the Revolving Credit Facility. The company has maintained a strong liquidity position, with total cash and cash equivalents of $1,655 million, including $75 million in restricted cash.
| Debt Metrics | Amount (in millions) |
|---|---|
| Total Indebtedness | $11,300 |
| Cash and Cash Equivalents | $1,655 |
| Available Capacity under Revolving Credit Facility | $1,913 |
Stock Performance
During the nine months ended September 30, 2024, Hilton repurchased approximately 10.2 million shares of its common stock for $2,113 million. As of September 30, 2024, approximately $1.7 billion remained available under the company's stock repurchase program.
Recent Developments
In March 2024, Hilton issued $1.0 billion of Senior Notes, which were utilized to repay part of its Revolving Credit Facility and to fund general corporate purposes. The company continues to focus on strategic growth and enhancing shareholder value through various initiatives, including acquisitions and expansion of its property portfolio.
A Who Owns Hilton Worldwide Holdings Inc. (HLT)
Ownership Structure
As of 2024, Hilton Worldwide Holdings Inc. (HLT) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders include various investment management firms and funds.
| Shareholder | Ownership Percentage | Number of Shares | Type of Holder |
|---|---|---|---|
| The Vanguard Group, Inc. | 8.54% | 20.9 million | Institutional |
| BlackRock, Inc. | 8.32% | 20.6 million | Institutional |
| State Street Corporation | 4.77% | 11.8 million | Institutional |
| FMR LLC (Fidelity) | 4.56% | 11.3 million | Institutional |
| Wellington Management Group LLP | 3.45% | 8.6 million | Institutional |
| Individual Investors | 70.36% | 173.4 million | Individual |
Stock Performance
As of September 30, 2024, Hilton's stock performance has shown resilience in the hospitality sector. The stock price stood at approximately $217.15, reflecting a steady growth trajectory over the past fiscal year.
Recent Share Repurchase Activity
In the nine months ended September 30, 2024, Hilton repurchased approximately 10.2 million shares of its common stock for a total of $2,113 million. This indicates the company's commitment to returning value to shareholders through stock buybacks.
| Period | Total Shares Repurchased | Average Price Paid per Share | Total Cost |
|---|---|---|---|
| July 2024 | 1,312,143 | $217.97 | $286 million |
| August 2024 | 1,036,006 | $211.95 | $219 million |
| September 2024 | 997,360 | $221.47 | $221 million |
| Total | 3,345,509 | $217.15 | $726 million |
Market Capitalization
As of September 30, 2024, Hilton Worldwide Holdings Inc. has a market capitalization of approximately $53.3 billion, underlining its position as a leading player in the global hospitality industry.
Dividend Policy
Hilton has maintained a consistent dividend payout. For the year 2024, the company announced a quarterly dividend of $0.15 per share, reflecting its ongoing commitment to returning cash to shareholders.
Recent Financial Highlights
For the three months ended September 30, 2024, Hilton reported:
- Net income attributable to Hilton stockholders: $344 million
- Diluted EPS: $1.38
- Total revenues: $1.24 billion
Conclusion on Ownership Dynamics
The ownership of Hilton Worldwide Holdings Inc. is characterized by a mix of institutional and individual shareholders, with significant institutional holdings. The company's ongoing stock repurchase program and stable dividend policy reflect its commitment to enhancing shareholder value.
Hilton Worldwide Holdings Inc. (HLT) Mission Statement
Company Overview
Hilton Worldwide Holdings Inc. (HLT) operates a portfolio of hotels and resorts across the globe. The company's mission statement emphasizes its commitment to delivering exceptional hospitality and creating memorable experiences for its guests.
Mission Statement
As of 2024, Hilton's mission is to be the most hospitable company in the world by delivering exceptional experiences—every hotel, every guest, every time. This mission underscores the importance Hilton places on its service culture and customer satisfaction.
Key Financial Metrics
In evaluating Hilton's operational performance, several key financial metrics are essential:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $2.867 billion | $2.673 billion | 7.3 |
| Net Income | $344 million | $379 million | (9.2) |
| Basic EPS | $1.40 | $1.45 | (3.4) |
| Diluted EPS | $1.38 | $1.44 | (4.2) |
| Cash Dividends Declared per Share | $0.15 | $0.15 | 0.0 |
| Occupancy Rate | 75.3% | 75.0% | 0.3 |
| Average Daily Rate (ADR) | $161.18 | $159.00 | 1.4 |
| Revenue per Available Room (RevPAR) | $121.40 | $119.85 | 1.3 |
Strategic Initiatives
Hilton's strategic initiatives revolve around enhancing customer experience, expanding its global footprint, and leveraging technology for operational efficiencies. The company focuses on:
- Innovating guest experiences through digital tools and services.
- Expanding its portfolio to include more eco-friendly and sustainable hotels.
- Enhancing loyalty programs to retain and attract customers.
Market Position and Competitive Landscape
Hilton operates in a highly competitive industry, with significant players including Marriott, Hyatt, and InterContinental Hotels Group. As of September 2024, Hilton's global presence includes:
| Region | Number of Properties | Total Rooms |
|---|---|---|
| U.S. | 7,431 | 1,233,343 |
| Europe | 1,200 | 200,000 |
| Asia Pacific | 1,000 | 150,000 |
| Middle East & Africa | 800 | 120,000 |
| Latin America | 500 | 80,000 |
Financial Outlook
Hilton projects continued growth in revenues and occupancy rates driven by increased travel demand and strategic expansions. The company maintains a robust balance sheet, with total assets of approximately $16.689 billion as of September 30, 2024.
Recent Developments
In March 2024, Hilton issued $1.0 billion in Senior Notes to enhance liquidity and support growth initiatives. The company's total indebtedness stood at approximately $11.3 billion, with a net cash position of $1.655 billion as of the end of Q3 2024. Additionally, Hilton repurchased approximately 10.2 million shares of its common stock for $2.113 billion during the nine months ended September 30, 2024.
How Hilton Worldwide Holdings Inc. (HLT) Works
Business Model Overview
Hilton Worldwide Holdings Inc. operates a diversified business model focused on the hospitality industry, primarily through hotel management and franchising. The company manages a range of brands, from luxury to budget accommodations, and generates revenue through franchise and management fees, owned and leased hotel revenues, and other ancillary services.
Financial Performance
As of September 30, 2024, Hilton reported total revenues of $8.391 billion for the nine months ended, compared to $7.626 billion for the same period in 2023, indicating a year-over-year increase of approximately 10%.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $2.867 billion | $2.673 billion | $8.391 billion | $7.626 billion |
| Net Income | $344 million | $379 million | $1.034 billion | $1.001 billion |
| Basic EPS | $1.40 | $1.45 | $4.13 | $3.77 |
| Diluted EPS | $1.38 | $1.44 | $4.09 | $3.74 |
| Cash Dividends Declared Per Share | $0.15 | $0.15 | $0.45 | $0.45 |
Revenue Breakdown
For the three months ended September 30, 2024, the revenue sources were as follows:
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|
| Franchise and Licensing Fees | $698 | $643 |
| Base and Other Management Fees | $88 | $81 |
| Incentive Management Fees | $66 | $63 |
| Owned and Leased Hotels | $330 | $335 |
| Other Revenues | $58 | $45 |
Operating Expenses
Hilton's total expenses for Q3 2024 were reported at $2.242 billion, up from $2.020 billion in Q3 2023. The breakdown of operating expenses is as follows:
| Expense Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|
| Owned and Leased Hotels | $288 | $301 |
| Depreciation and Amortization | $37 | $40 |
| General and Administrative | $101 | $96 |
| Other Expenses | $26 | $26 |
Debt and Liquidity
As of September 30, 2024, Hilton's total indebtedness was approximately $11.3 billion, with no outstanding amounts under the Revolving Credit Facility. The company had cash and cash equivalents totaling $1.655 billion, including $75 million of restricted cash.
Market Performance
Hilton's stock performance has been influenced by various market conditions. As of the end of September 2024, the company’s market capitalization was approximately $37 billion.
Operational Metrics
Key operational metrics for Hilton's system-wide hotels for Q3 2024 include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Occupancy Rate | 75.3% | 75.0% |
| Average Daily Rate (ADR) | $161.18 | $159.12 |
| Revenue Per Available Room (RevPAR) | $121.40 | $119.78 |
Strategic Initiatives
In March 2024, Hilton issued $1.0 billion in senior notes to refinance existing debt and support corporate initiatives. The company continues to expand its portfolio through acquisitions and new hotel openings, including the acquisition of the Graduate brand and the Sydell Group during 2024.
Shareholder Returns
During the nine months ended September 30, 2024, Hilton repurchased approximately 10.2 million shares of common stock for a total of $2.113 billion. The company has approximately $1.7 billion remaining under its stock repurchase program.
How Hilton Worldwide Holdings Inc. (HLT) Makes Money
Revenue Sources
Hilton Worldwide Holdings Inc. (HLT) generates revenue through several key segments:
- Franchise and Licensing Fees
- Management Fees
- Owned and Leased Hotels
- Other Revenues
Franchise and Licensing Fees
Franchise and licensing fees are a significant revenue source for Hilton, reflecting the company's extensive network of franchised hotels. For the three months ended September 30, 2024, Hilton reported:
| Revenue Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Franchise and Licensing Fees | $698 million | $643 million | 8.6% |
| Year-to-Date (YTD) Fees | $1,958 million | $1,769 million | 10.7% |
Management Fees
The management segment includes fees from hotels managed on behalf of third-party owners. The breakdown for management fees is as follows:
| Revenue Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Base and Other Management Fees | $88 million | $81 million | 8.6% |
| Incentive Management Fees | $66 million | $63 million | 4.8% |
| Total Management Fees | $154 million | $144 million | 6.9% |
| YTD Total Management Fees | $491 million | $444 million | 10.6% |
Owned and Leased Hotels
Owned and leased hotel revenues reflect income from properties that Hilton directly owns or leases. The financial performance is as follows:
| Revenue Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Owned and Leased Hotels Revenues | $330 million | $335 million | (1.5%) |
| YTD Owned and Leased Hotels Revenues | $922 million | $924 million | (0.2%) |
Other Revenues
Other revenues include income from various sources, such as procurement volume and vendor rebates:
| Revenue Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Other Revenues | $58 million | $45 million | 28.9% |
| YTD Other Revenues | $179 million | $126 million | 42.1% |
Operating Income and Expenses
Hilton's operating income and expenses for Q3 2024 are summarized as follows:
| Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $2,867 million | $2,673 million |
| Total Expenses | $2,242 million | $2,020 million |
| Operating Income | $623 million | $653 million |
Net Income
Net income attributable to Hilton stockholders for the three months ended September 30, 2024, was:
| Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $344 million | $379 million |
| Basic EPS | $1.40 | $1.45 |
| Diluted EPS | $1.38 | $1.44 |
Debt and Financial Position
As of September 30, 2024, Hilton's total indebtedness was approximately:
| Type | Amount |
|---|---|
| Total Indebtedness | $11.3 billion |
| Cash and Cash Equivalents | $1,655 million |
Hilton's operational strategy focuses on expanding its franchise and management segments while optimizing owned hotel performance through strategic renovations and acquisitions. The company's diverse revenue streams and strong financial position enable it to navigate the competitive landscape of the hospitality industry effectively.
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Article updated on 8 Nov 2024
Resources:
- Hilton Worldwide Holdings Inc. (HLT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hilton Worldwide Holdings Inc. (HLT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hilton Worldwide Holdings Inc. (HLT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.