Hilton Worldwide (HLT) Q3 2024 earnings summary

Executive summary

• Achieved record net unit growth of 7.8% and opened more hotel rooms than any prior quarter, surpassing 8,000 hotels globally and reaching over 200 million loyalty members.

• Adjusted EBITDA and adjusted EPS exceeded guidance despite softer RevPAR, driven by strong group and business transient segments.

• System-wide RevPAR increased 1.4% year-over-year for Q3 2024, led by higher ADR and occupancy, with notable growth in Europe and the Americas outside the U.S.

• Expanded lifestyle and luxury portfolio, including integration of nearly 400 Small Luxury Hotels of the World properties and acquisitions of Graduate and NoMad brands.

• Hilton Honors membership grew 17% year-over-year to 203 million.

Financial highlights

• Q3 2024 revenue was $2.87 billion, up 7.3% year-over-year; adjusted EBITDA was $904 million, up 8% year-over-year, exceeding guidance.

• Net income for Q3 2024 was $344 million, down from $379 million in Q3 2023; adjusted diluted EPS was $1.92, up from $1.67.

• Management and franchise fees grew 8%–8.6% year-over-year.

• Franchise and licensing fees grew 8.6% in Q3 and 10.7% for the nine months.

• Adjusted EBITDA margin for Q3 2024 was 72.2%, up from 70.8% in Q3 2023.

Outlook and guidance

• Full-year 2024 RevPAR growth expected at 2%–2.5%; adjusted EBITDA forecast at $3,375–$3,405 million.

• Full-year adjusted EPS guidance of $6.93–$7.03; net income expected between $1,405 million and $1,429 million.

• Fourth quarter RevPAR growth expected at 1%–2% year-over-year; adjusted EBITDA guidance of $804–$834 million.

• Net unit growth expected at 7–7.5% for 2024 and 6–7% for 2025.

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