Hilton Worldwide Holdings Inc.
HLT · NYSE
Next quarter
Reports Oct 28, 2026.
Consensus is $2.35 EPS for Sep 2026 across 7 estimates, ranging $2.30 to $2.42.
HLT Jun 2026
- 0.00%
- -0.22%
- $2.29
- $2.29
- —
- $3.34B
Reported results
- $3.34B
- $858.00M
- 25.68%
- $482.00M
- $2.10
Highlights
- Earnings: Adjusted diluted EPS was $2.29, exactly matching the $2.29 consensus; GAAP diluted EPS was $2.10 versus $1.84 a year ago.
- Demand: System-wide comparable RevPAR rose 3.9% year over year on a currency-neutral basis to $125.02, driven by occupancy up 1.0 percentage point to 74.9% and ADR up 2.5% to $166.97.
- Profitability: Adjusted EBITDA increased 4.6% to $1.054 billion, while net income rose 9.0% to $482 million and operating income rose 10.3% to $858 million.
- Fee engine: Management and franchise fee revenue increased 6.4% to $976 million, including franchise and licensing fees up 8.5% to $808 million; incentive management fees fell 8.0% to $69 million.
- Development: Hilton opened 207 hotels and added 21,600 net rooms in the quarter; net unit growth reached 6.1% year over year, supporting the 2026 target of 6.0%-7.0%.
- Pipeline: Hilton approved 42,900 rooms for development, bringing the pipeline to a record 541,300 rooms across 3,853 hotels, up 6% from a year ago.
- Capital return: Hilton repurchased 2.9 million shares for $932 million and returned $966 million including dividends in the quarter; full-year capital return is projected at approximately $3.5 billion.
- Outlook: Full-year 2026 RevPAR growth remains projected at 3.0%-3.5%, with adjusted EPS of $8.89-$9.01 and Adjusted EBITDA of $4.04-$4.08 billion.
Analysis
Hilton delivered a solid second quarter, with adjusted EPS of $2.29 exactly matching consensus and rising 4.1% from $2.20 a year ago. GAAP EPS was $2.10, up from $1.84, while revenue increased 6.5% to $3.34 billion, operating income rose 10.3% to $858 million and net income increased 9.0% to $482 million. Against the first quarter, revenue rose 13.6%, operating income 26.5% and net income 25.2%, reflecting normal seasonal strength as well as improving demand. Adjusted EBITDA reached $1.054 billion, compared with $1.008 billion a year ago and $901 million in the first quarter, based on the reported first-half total of $1.955 billion.
The print was defined by 3.9% comparable RevPAR growth, broad strength in the U.S. and Europe, and continued fee-based expansion. Management and franchise fee revenue rose 6.4%, although incentive fees declined 8.0% and ownership revenue fell 6.3%. Management also said EBITDA benefited from $17 million of non-RevPAR items that had been expected later in the year, making the underlying beat less pronounced. Development was the other major theme: 21,600 net rooms were added and the pipeline reached 541,300 rooms. Hilton maintained its full-year outlook, including 6.0%-7.0% net unit growth and approximately $3.5 billion of capital return.
RevPAR and fee growth
Underlying hotel demand improved across most of the system, with fee-based earnings benefiting more than the owned portfolio. The U.S. was the strongest major region, while Middle East and Africa remained a material drag.
- System performance: Comparable RevPAR increased 3.9% to $125.02, with occupancy up 1.0 percentage point to 74.9% and ADR up 2.5% to $166.97.
- Regional mix: U.S. RevPAR rose 5.4%, Europe increased 4.3%, Americas excluding the U.S. increased 4.6% and Asia Pacific increased 1.2%. Middle East and Africa RevPAR fell 29.5% because of the ongoing geopolitical conflict.
- Fee revenue: Franchise and licensing fees increased 8.5% to $808 million, base and other management fees rose 2.1% to $99 million, while incentive management fees declined 8.0% to $69 million because of conflicts in certain regions.
- Segment earnings: Management and franchise Adjusted EBITDA rose 7.2% to $1.009 billion, offsetting a decline in ownership Adjusted EBITDA to $45 million from $57 million.
- Timing item: Management said second-quarter net income and Adjusted EBITDA included $17 million of non-RevPAR items previously expected in the second half of the year.
Development and network scale
Hilton accelerated openings and approvals sequentially, reinforcing the asset-light growth model. Nearly all pipeline rooms are expected to enter the management and franchise segment, where additions require limited Hilton capital.
- Quarterly additions: Hilton opened 207 hotels totaling 24,100 rooms and added 21,600 net rooms, with openings up 50% from the first quarter.
- System growth: Net unit growth was 6.1% from June 30, 2025, and management reiterated its expectation for 6.0%-7.0% growth in 2026.
- Pipeline: The development pipeline ended at 3,853 hotels and 541,300 rooms across 132 countries and territories, including 26 countries where Hilton had no existing hotels.
- Pipeline quality: Almost half of pipeline rooms were under construction and more than half were outside the U.S., supporting future international expansion.
- Brand expansion: Hilton launched Undergraduate by Hilton, an upper-midscale brand targeting college and university markets, and opened the first three Apartment Collection by Hilton properties.
Capital return and leverage
Hilton continued to prioritize repurchases while refinancing part of its debt stack. The company generated $1.09 billion of operating cash flow in the first half, although cash flow was slightly below the prior year because of higher tax payments.
- Repurchases: Hilton bought back 2.9 million shares for $932 million at an average price of $326.99 in the quarter; first-half repurchases totaled 5.6 million shares for approximately $1.79 billion.
- Total return: Capital returned, including the $34 million quarterly dividend, was $966 million in the quarter and $2.034 billion year to date through July.
- Debt issuance: Hilton issued $1.0 billion of 5.500% senior notes due 2031 and used part of the proceeds to repay $450 million drawn on its revolving credit facility.
- Liquidity: Debt outstanding was $13.4 billion, cash and cash equivalents totaled $1.064 billion, and the revolver had $1.894 billion of available capacity with no borrowings outstanding.
- Leverage: Net debt was $12.38 billion and net debt to trailing Adjusted EBITDA was 3.2 times, compared with $11.489 billion of net debt at December 31, 2025.
Full-year outlook
Hilton left its 2026 outlook unchanged, with the second half expected to deliver stronger unit growth and a roughly 4.0% RevPAR increase in the third quarter. The near-term outlook includes event and calendar effects that will shift demand between quarters.
- 2026 RevPAR: Comparable, currency-neutral RevPAR is projected to increase 3.0%-3.5%, including expected third-quarter benefits from the World Cup and favorable calendar shifts.
- 2026 earnings: Net income is projected at $1.883-$1.911 billion, diluted EPS at $8.22-$8.35, adjusted EPS at $8.89-$9.01 and Adjusted EBITDA at $4.040-$4.080 billion.
- Third quarter: RevPAR is projected to rise approximately 4.0%, with adjusted EPS of $2.28-$2.34 and Adjusted EBITDA of $1.035-$1.055 billion.
- Capital allocation: Full-year capital return remains projected at approximately $3.5 billion, while contract acquisition costs and capital expenditures excluding third-party reimbursements are expected to be approximately $300 million.
