Hilton Worldwide Holdings Inc.
HLT · NYSE
Dec 2026
Next quarter
Expected to report Feb 10, 2027 — estimated from last year’s reporting date.
Consensus is $2.43 EPS for Dec 2026 across 5 estimates, ranging $2.37 to $2.54.
HLT Sep 2026
- 3.81%
- $2.36
- $2.45
- —
- $3.33B
Reported results
- $3.33B
- $909.00M
- 27.34%
- $536.00M
- $2.37
Highlights
- Adjusted EPS beat: Third-quarter adjusted diluted EPS was $2.45, 3.8% above the $2.36 consensus; GAAP diluted EPS was $2.37.
- Comparable hotel demand strengthened: System-wide RevPAR rose 5.8% year over year to $124.70, as occupancy gained 1.4 percentage points and ADR increased 3.9%.
- Profit grew faster than revenue: Revenue of $3.325 billion increased 6.6% year over year, while operating income rose 17.0% to $909 million and net income grew 27.3% to $536 million.
- Fee revenue continued to expand: Management and franchise fee revenue increased 9.5% year over year; Adjusted EBITDA was $1.058 billion, up from $976 million.
- Growth remained pipeline-led: Hilton opened 182 hotels with 27,000 rooms and added 23,000 net rooms in the quarter; its 543,100-room pipeline was up 5% year over year.
- Regional demand diverged: U.S. RevPAR rose 7.0% and Europe gained 6.5%, while Middle East & Africa fell 5.6% and Asia Pacific slipped 0.5%.
- Full-year outlook implies a softer Q4: Hilton expects 2026 RevPAR growth of 4.0%–4.5%, with Q4 growth of 3.0%–3.5%; the company cited midterm elections and increased Middle East impact as Q4 headwinds.
- Shareholder returns remained substantial: Hilton repurchased 2.6 million shares for $845 million and paid $34 million in dividends in Q3; capital return through October totaled $2.902 billion.
Analysis
Hilton delivered a solid third quarter, with adjusted diluted EPS of $2.45 beating the $2.36 consensus by 3.8%. GAAP diluted EPS was $2.37, up from $1.78 a year earlier and $2.10 in Q2. Revenue of $3.325 billion grew 6.6% year over year but was slightly below Q2’s $3.34 billion; operating income rose to $909 million from $777 million a year ago and $858 million last quarter. Net income increased to $536 million from $421 million a year ago and $482 million in Q2, while Adjusted EBITDA advanced 8.4% to $1.058 billion.
The print was defined by broad RevPAR growth, continued fee-business expansion and strong room additions, offset by weakness in the Middle East & Africa and a more measured Q4 outlook. Comparable system-wide RevPAR increased 5.8%, supported by higher occupancy and ADR; Hilton attributed U.S. strength partly to the World Cup and favorable calendar shifts. Management and franchise fees rose 9.5%, and Hilton added 23,000 net rooms as its development pipeline reached 543,100. For 2026, the company expects RevPAR growth of 4.0%–4.5% and Adjusted EBITDA of $4.060 billion–$4.080 billion, with Q4 RevPAR growth forecast at 3.0%–3.5% amid election and Middle East-related pressures.
RevPAR and regional demand
- System-wide: Comparable currency-neutral RevPAR grew 5.8% to $124.70, reflecting occupancy up 1.4 points to 75.8% and ADR up 3.9% to $164.57. For the first nine months, RevPAR was up 4.7%.
- U.S. and Europe: U.S. RevPAR rose 7.0%, with occupancy up 2.1 points and ADR up 4.1%; Hilton cited strength in business and group travel, leisure growth, the World Cup and favorable calendar shifts. Europe gained 6.5%, supported by business and group demand and special events.
- Areas of weakness: Middle East & Africa RevPAR declined 5.6% as occupancy fell 5.0 points amid ongoing geopolitical conflict. Asia Pacific slipped 0.5%, with growth outside China offset by weaker China leisure, business and group travel.
- Q4 setup: Hilton expects comparable currency-neutral RevPAR growth of 3.0%–3.5% in Q4, citing midterm elections and an increased impact from the Middle East.
Earnings and fee growth
- Reported performance: Revenue rose 6.6% year over year to $3.325 billion, operating income increased 17.0% to $909 million and net income reached $536 million, up from $421 million. Revenue was modestly below Q2’s $3.34 billion, while operating income and net income increased from $858 million and $482 million, respectively.
- EPS: Adjusted diluted EPS of $2.45 beat the $2.36 consensus by 3.8% and compared with $2.11 a year earlier. GAAP diluted EPS was $2.37, versus $1.78 a year earlier and $2.10 in Q2.
- Fee-led growth: Management and franchise fee revenue increased 9.5% to $1.012 billion. Franchise and licensing fees grew 10.3% to $815 million, supported by RevPAR, net hotel additions and strategic partnerships; total management fees rose 5.7% to $167 million.
- Profitability: Adjusted EBITDA increased to $1.058 billion from $976 million, and its margin on adjusted revenues widened to 77.0% from 75.2%. Higher interest expense—$184 million versus $159 million a year earlier—partly reflected recent note issuance and the March expiry of an interest-rate swap.
Development and room growth
- Quarterly openings: Hilton opened 182 hotels totaling 27,000 rooms, producing 23,000 net room additions; net additions were up 6.5% sequentially. Management said this was its highest quarter for organic openings.
- Pipeline: Hilton approved 30,500 rooms for development in Q3. At September 30, the pipeline totaled 3,869 hotels and 543,100 rooms across 135 countries and territories, up 5% year over year; nearly half the rooms were under construction and more than half were outside the U.S.
- Full-year growth target: Net unit growth is projected at 6.0%–7.0%, with expectations around the midpoint. The company reported 6.0% net unit growth year over year through September.
Full-year outlook
- 2026 targets: Hilton forecasts comparable currency-neutral RevPAR growth of 4.0%–4.5%, diluted EPS of $8.38–$8.44, adjusted diluted EPS of $9.07–$9.13 and Adjusted EBITDA of $4.060 billion–$4.080 billion.
- Q4 expectations: Adjusted diluted EPS is forecast at $2.32–$2.38 and Adjusted EBITDA at $1.047 billion–$1.067 billion. The Q4 RevPAR range of 3.0%–3.5% is below Q3’s 5.8%.
- Guidance context: Hilton said Q3 benefited from the World Cup and favorable calendar and holiday shifts. Its full-year EBITDA outlook also incorporates lower expectations for Middle East performance and timeshare license fees compared with prior guidance.
Capital returns and liquidity
- Buybacks and dividends: Hilton repurchased 2.6 million shares at an average $320.05 for $845 million in Q3 and paid $34 million in dividends. Capital return, including dividends, reached $2.902 billion year to date through October; full-year capital return is projected at about $3.5 billion.
- Debt and liquidity: Debt was $13.5 billion, excluding unamortized financing costs and discounts; cash and cash equivalents totaled $830 million, including restricted cash. Hilton had $1.894 billion of available revolver capacity and no material debt maturity until April 2029 other than $600 million due in April 2027.
- Cash generation: Operating cash flow was $1.811 billion for the first nine months, down from $1.926 billion a year earlier, primarily because income tax payments increased by $401 million due to timing.
Sanctions-related exits
- Frankfurt properties: Following sanctions on an indirect majority owner/landlord, Hilton wound down its management of the Hilton Frankfurt Gravenbruch by August 31; it reported no measurable gross revenue or net profit from that hotel after the sanctions. Hilton terminated its lease for the Hilton Frankfurt City Centre effective October 31 and was winding down operations; Q3 gross revenue from that property after the sanctions was approximately $5 million.
