NYSE$HLT

Hilton Worldwide Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Hilton reported strong Q4 and full year results driven by increased RevPAR and strategic development initiatives.

Hilton's Q4 2023 results showed a diluted EPS of $0.57, adjusted EPS of $1.68, and a net income of $150 million. System-wide comparable RevPAR increased by 5.7% compared to 2022. The company added a record 24,000 rooms to its system and repurchased 4.6 million shares of its common stock.

  • Diluted EPS was $0.57 for the fourth quarter, and adjusted diluted EPS was $1.68.
  • System-wide comparable RevPAR increased by 5.7% compared to the same period in 2022.
  • Hilton added a record 24,000 rooms to its system in the fourth quarter.
  • The company repurchased 4.6 million shares of Hilton common stock during the fourth quarter.

Headline financials

Total Revenue

$2.61B

Previous: $2.44B+6.8%
EPS (adj)

$1.68

Previous: $1.59+5.7%
System-wide RevPAR

$5.70

Previous: $101.72-94.4%
Capital Expenditures

$42M

Previous: $20M+110.0%
Net Income

$150M

Previous: $333M-55.0%
Operating Income

$400M

Previous: $504M-20.6%
Gross Profit

$613M

Previous: $663M-7.5%
Stock-Based Comp

$36M

Previous: $36M+0.0%

Revenue & EPS history

Hilton · Revenue · Quarterly

$2.61B

Q4 2023+6.8%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hilton · $1.16B total across 5 segments · Q2 2023

  • Franchise & Licensing Fees
    $618M+13.4%
  • Ownership
    $341M+20.9%
  • Base & Other Mgmt Fees
    $86M+14.7%
  • Incentive Mgmt Fees
    $69M+50.0%
  • Other Revenues
    $46M+84.0%

Forward guidance

Hilton projects a positive outlook for 2024, anticipating continued growth in RevPAR and adjusted EBITDA.

Tailwinds

  • System-wide RevPAR is projected to increase between 2.0% and 4.0% compared to 2023.
  • Net income is projected to be between $1,694 million and $1,729 million.
  • Adjusted EBITDA is projected to be between $3,330 million and $3,380 million.
  • Capital return is projected to be approximately $3.0 billion.
  • Net unit growth is projected to be between 5.5% and 6.0%.

Headwinds

  • Outlook does not include the effect of the partnership with Small Luxury Hotels of the World due to timing.
  • Share-based metrics do not include the effect of potential share repurchases after Q4.
  • General and administrative expenses are projected to be between $415 million and $430 million.
  • Contract acquisition costs and capital expenditures are projected to be between $250 million and $300 million.
  • First Quarter 2024 system-wide comparable RevPAR, on a currency neutral basis, is projected to increase between 2.0 percent and 4.0 percent compared to the first quarter of 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.8%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+2.7%

Avg return

30 days after

57%

30 / 53 earnings

Positive

+7.9%

Q4 2018

Best reaction

-5.8%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-4.2%+0.5%
Q4 2025+0.4%-2.8%-9.9%
Q3 2025+3.4%+0.1%+3.2%
Q2 2025-2.6%-1.2%+1.3%
Q1 2025+2.2%+8.7%+12.0%
Q4 2024+4.9%+4.4%-4.2%
Q3 2024-1.2%-0.4%+6.2%
Q2 2024-1.0%-0.7%+2.9%
Q1 2024+3.5%+2.6%+3.1%
Q4 2023-0.0%-0.5%+5.7%
Q3 2023-0.8%+1.1%+13.5%
Q2 2023+1.0%+2.9%-2.7%
Q1 2023-3.1%-1.3%-5.6%
Q4 2022-0.1%+2.8%-4.6%
Q3 2022+2.1%+3.5%+5.8%
Q2 2022+6.5%+7.0%+9.0%
Q1 2022-2.6%-7.7%-8.4%
Q4 2021-3.1%-4.8%-3.9%
Q3 2021+1.1%+0.2%-5.7%
Q2 2021+1.5%-2.7%-1.5%
Q1 2021-5.8%-5.2%-2.7%
Q4 2020+0.4%+5.6%+9.5%
Q3 2020+3.8%+14.9%+22.3%
Q2 2020+4.6%+8.8%+13.7%
Q1 2020+2.0%-5.4%+23.2%
Q4 2019+2.1%+1.7%-31.1%
Q3 2019+6.8%+7.1%+11.6%
Q2 2019+1.3%+2.4%-4.2%
Q1 2019+4.9%+6.1%+2.8%
Q4 2018+7.9%+10.0%+15.4%
Q3 2018-1.9%-0.4%+6.2%
Q2 2018-1.1%-4.0%-4.2%
Q1 2018-2.0%-1.9%+0.0%
Q4 2017+1.6%+0.1%-2.0%
Q3 2017+0.8%+1.3%+6.2%
Q2 2017-0.8%-0.9%+0.6%
Q1 2017+2.8%+3.0%+12.3%
Q4 2016+1.3%+0.1%-0.9%
Q3 2016-2.1%-0.6%+11.4%
Q2 2016-4.1%-2.3%+0.6%
Q1 2016+2.8%
Q4 2015+2.9%
Q3 2015-0.6%
Q2 2015+0.2%
Q1 2015-1.6%
Q4 2014-1.0%
Q3 2014+1.0%
Q2 2013-0.1%
Q2 2014-0.1%
Q1 2013+1.5%
Q4 2012+1.5%
Q1 2014+1.5%
Q4 2013-0.8%
Q3 2013
Q3 2012

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