Hilton Worldwide (HLT) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q2 2025 exceeded $1 billion, with net income rising to $442 million and diluted EPS of $1.84, despite a 0.5% year-over-year decline in system-wide RevPAR due to calendar shifts and softer U.S. and China trends.

• Net unit growth reached 7.5% with 221 hotel openings in Q2 and 407 hotels (46,200 rooms) added in the first half of 2025; the development pipeline expanded to 510,600 rooms, with nearly half under construction.

• Hilton Honors membership grew 16% year-over-year to over 226 million as of June 30, 2025.

• $1.7 billion returned to shareholders year-to-date via buybacks and dividends, on track for $3.3 billion for the full year.

• Delivered strong bottom line results despite modestly negative top line performance due to holiday/calendar shifts, reduced government spending, and economic uncertainty.

Financial highlights

• Q2 2025 total revenues were $3.14 billion, up from $2.95 billion in Q2 2024; adjusted EBITDA for Q2 was $1.01 billion, up from $917 million year-over-year.

• Adjusted diluted EPS was $2.20 for the quarter; diluted EPS was $1.84.

• Management and franchise fee revenues grew 7.9%–8.1% year-over-year in Q2 2025.

• System-wide RevPAR decreased 0.5% year-over-year, with U.S. RevPAR down 1.5% and international regions showing growth, notably Middle East/Africa up 10.3%.

• Cash flow from operations for the first half of 2025 was $1.11 billion, a 44.7% increase year-over-year.

Outlook and guidance

• Q3 RevPAR expected to be flat to modestly down; full-year 2025 RevPAR growth expected between 0%–2%.

• Full-year adjusted EBITDA guidance is $3.65–$3.71 billion; adjusted EPS guidance is $7.83–$8.00; diluted EPS guidance is $6.82–$6.99.

• Net unit growth for the year projected at 6%–7%.

• Capital return for 2025 projected at approximately $3.3 billion.

• Management expects continued growth in the fee-based business and a focus on expanding the global hotel network.