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, with Hilton Honors membership reaching 203 million.

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

• Adjusted EBITDA and adjusted EPS exceeded the high end of guidance, despite softer RevPAR.

• Expanded luxury and lifestyle portfolios, including integration of nearly 400 Small Luxury Hotels of the World properties.

• Acquired the Graduate brand for $210 million and a controlling interest in the Sydell Group (NoMad brand) in 2024.

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.

• Diluted EPS for Q3 2024 was $1.38; adjusted diluted EPS was $1.92, up from $1.67 in Q3 2023.

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

• Returned over $2.4 billion to shareholders year-to-date via buybacks and dividends.

Outlook and guidance

• Full-year 2024 system-wide RevPAR projected to rise 2.0–2.5% year-over-year.

• Full-year adjusted EBITDA guidance: $3.375–$3.405 billion; adjusted EPS: $6.93–$7.03.

• 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.

• Management expects continued growth in management and franchise fees, supported by a robust development pipeline and strong demand in most regions.