Hilton Worldwide (HLT) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong results with system-wide RevPAR up 3.5% year-over-year, driven by robust group and business transient performance and growth across all segments.

• Adjusted EBITDA reached $917 million, up from $811 million in Q2 2023, and adjusted EPS was $1.91, both above guidance.

• Net unit growth was 6.2% year-over-year, with net unit growth guidance for 2024 raised to 7%-7.5% and a record development pipeline of 508,300 rooms.

• Strategic acquisitions included Graduate Hotels and NoMad, and partnerships such as Small Luxury Hotels of the World added nearly 400 hotels.

• Hilton operated 7,780 properties with 1,216,308 rooms in 126 countries as of June 30, 2024, and Hilton Honors membership rose 18% year-over-year to 195 million.

Financial highlights

• Q2 2024 total revenues were $2.95 billion, up 11% from Q2 2023; net income was $422 million, with diluted EPS of $1.67 and adjusted EPS of $1.91.

• System-wide comparable RevPAR increased 3.5% year-over-year, with U.S. up 2.9%, Europe 6.7%, Middle East & Africa 10.7%, and Asia Pacific 0.9%.

• Adjusted EBITDA for Q2 was $917 million, up 13% year-over-year.

• Management and franchise fees grew 10%–11.5% year-over-year in Q2.

• Returned nearly $1.8 billion to shareholders year-to-date via buybacks and dividends.

Outlook and guidance

• Full-year 2024 RevPAR growth expected at 2%-3%; adjusted EBITDA guidance is $3.375–$3.405 billion.

• Adjusted EPS for 2024 forecasted at $6.93–$7.03; net income projected between $1,532 million and $1,555 million.

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

• Net unit growth for 2024 expected at 7%-7.5%; capital return for 2024 projected at approximately $3.0 billion.