Hilton Worldwide (HLT) Q2 2024 earnings summary

Executive summary

• Delivered strong Q2 2024 results with system-wide RevPAR up 3.5% year-over-year, exceeding guidance midpoint, driven by robust group and business transient demand and easier holiday comparisons.

• Adjusted EBITDA reached $917 million, up 13% year-over-year, and adjusted EPS was $1.91, both above guidance high end.

• Net income for Q2 was $422 million, with diluted EPS of $1.67; Hilton operated 7,780 properties with 1,216,308 rooms in 126 countries as of June 30, 2024.

• Opened 165 hotels (22,000+ rooms) in Q2, achieving net unit growth of 6.2% and surpassing 8,000 hotels globally; development pipeline hit a record 508,300 rooms, up 15% year-over-year.

• Expanded lifestyle segment with Graduate Hotels and NoMad acquisitions, and added nearly 400 Small Luxury Hotels (SLH) properties.

Financial highlights

• Q2 2024 total revenues were $2.95 billion, up 11% from $2.66 billion in Q2 2023; net income increased to $422 million from $413 million year-over-year.

• Adjusted EBITDA for Q2 was $917 million, up from $811 million in Q2 2023; adjusted EBITDA margin was 72.2%.

• Diluted EPS for Q2 was $1.67, up from $1.55; adjusted EPS was $1.91, up from $1.63 year-over-year.

• Management and franchise fees increased 10% year-over-year; franchise and licensing fees grew 11.5%.

• System-wide comparable RevPAR increased 3.5% in Q2 2024, driven by higher ADR and occupancy.

Outlook and guidance

• Full-year 2024 RevPAR growth expected at 2%-3%; net unit growth expected at 7%-7.5%.

• Adjusted EBITDA guidance for 2024: $3.375B–$3.405B; adjusted diluted EPS for 2024: $6.93–$7.03.

• Full-year net income projected between $1,532 million and $1,555 million.

• Q3 2024 guidance: RevPAR growth 2%-3%, adjusted EBITDA $875M–$890M, adjusted EPS $1.80–$1.85.

• Capital return for 2024 projected at approximately $3.0 billion.