Hilton Reports Third Quarter Results

Hilton Worldwide Holdings Inc. ("Hilton," "the Company," "we," "us" or "our") (NYSE: HLT) today reported its third quarter 2025 results. Highlights include:

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• Diluted EPS was $1.78 for the third quarter, and diluted EPS, adjusted for special items, was $2.11

• Net income was $421 million for the third quarter

• Adjusted EBITDA was $976 million for the third quarter

• System-wide comparable RevPAR declined 1.1 percent, on a currency neutral basis, for the third quarter compared to the same period in 2024

• Approved 33,000 new rooms for development during the third quarter, bringing our development pipeline to a record 515,400 rooms as of September 30, 2025, representing growth of 5 percent from September 30, 2024

• Added 24,800 rooms to our system, resulting in 23,200 net additional rooms for the third quarter, contributing to net unit growth of 6.5 percent from September 30, 2024

• Announced the launch of a new lifestyle brand, Outset Collection by Hilton, in October 2025

• In October 2025, reached our 9,000th property milestone with the opening of the Signia by Hilton La Cantera Resort and Spa

• Repurchased 2.8 million shares of Hilton common stock during the third quarter, bringing total capital return, including dividends, to $792 million for the quarter and $2,671 million year to date through October 2025

• Full year 2025 system-wide RevPAR is projected to be flat to an increase of 1.0 percent on a comparable and currency neutral basis compared to 2024; full year net income is projected to be between $1,604 million and $1,625 million; full year Adjusted EBITDA is projected to be between $3,685 million and $3,715 million

• Full year 2025 capital return is projected to be approximately $3.3 billion

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "Our third quarter results continued to demonstrate the resilience of our business model, delivering strong bottom line performance despite softer industry RevPAR. We remain optimistic, that in the U.S., lower interest rates, a more favorable regulatory environment, certainty on tax policy and a significant investment cycle will accelerate economic growth and travel demand, and, when paired with limited industry supply growth, should drive stronger RevPAR growth over the next several years. The quality of our development pipeline, acceleration in new development construction starts, attractiveness of our brands for conversions and continued growth of our brand presence globally gives us confidence in delivering net unit growth between 6.5 percent and 7.0 percent in 2025 and 6.0 percent to 7.0 percent over the next several years."

For the three months ended September 30, 2025, system-wide comparable RevPAR decreased 1.1 percent compared to the same period in 2024 due to modest occupancy and ADR declines. Management and franchise fee revenues increased 5.3 percent compared to the same period in 2024.

For the nine months ended September 30, 2025, system-wide comparable RevPAR increased 0.3 percent compared to the same period in 2024 due to an increase in ADR. Management and franchise fee revenues increased 6.1 percent compared to the same period in 2024.

For the three months ended September 30, 2025, diluted EPS was $1.78 and diluted EPS, adjusted for special items, was $2.11, compared to $1.38 and $1.92, respectively, for the three months ended September 30, 2024. Net income and Adjusted EBITDA were $421 million and $976 million, respectively, for the three months ended September 30, 2025, compared to $344 million and $904 million, respectively, for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, diluted EPS was $4.84 and diluted EPS, adjusted for special items, was $6.03, compared to $4.09 and $5.36, respectively, for the nine months ended September 30, 2024. Net income and Adjusted EBITDA were $1,163 million and $2,779 million, respectively, for the nine months ended September 30, 2025, compared to $1,034 million and $2,571 million, respectively, for the nine months ended September 30, 2024.

Development

In the third quarter of 2025, we opened 199 hotels, totaling 24,800 rooms, resulting in 23,200 net room additions. We continued to expand our luxury and lifestyle brands during the quarter, including the addition of the Conrad Hamburg, representing the brand's debut in Germany and the KROMO Bangkok, Curio Collection by Hilton, the brand's first hotel in Thailand. We also opened the Sunseeker Resort Florida Gulf Coast, Curio by Hilton, which will deliver a luxury experience curated for leisure, lifestyle and business travelers alike. We signed the Makati in Metro Manila, Canopy by Hilton, representing the brand's first hotel in the Philippines, and broke ground on the Signia by Hilton Savannah, which will serve as the Savannah Convention Center's headquarters hotel. In Vietnam, we approved nearly 1,800 rooms across five hotels to debut our Conrad, LXR and DoubleTree brands and expand the Hilton brand in one of Asia's most dynamic markets. In October 2025, we reached another milestone with our 9,000th property, with the opening of the Signia by Hilton La Cantera Resort and Spa. We also announced the launch of our new lifestyle brand, Outset Collection by Hilton, which has more than 60 hotels in development and for which we expect bookings to be available starting later this year.

We added 33,000 rooms to the development pipeline during the third quarter, and, as of September 30, 2025, our development pipeline totaled 3,648 hotels representing 515,400 rooms throughout 128 countries and territories, including 26 countries and territories where we had no existing hotels. Additionally, of the rooms in the development pipeline, nearly half were under construction and more than half were located outside of the U.S.

Balance Sheet and Liquidity

As of September 30, 2025, we had $11.7 billion of debt outstanding, excluding the deduction for unamortized deferred financing costs and discount, with a weighted average interest rate of 4.81 percent. Excluding all finance lease liabilities, we had $11.6 billion of debt outstanding with a weighted average interest rate of 4.80 percent and no material indebtedness that matures prior to April 2027. We believe that we have sufficient sources of liquidity and access to debt markets to address the repayment of all indebtedness that becomes due at or prior to the respective maturity dates.

In July 2025, we borrowed $225 million under our senior secured revolving credit facility (the "Revolving Credit Facility"), bringing total outstanding borrowings under the Revolving Credit Facility to $515 million. We subsequently issued $1.0 billion aggregate principal amount of 5.750% Senior Notes due 2033 and used a portion of the net proceeds to repay all $515 million of outstanding indebtedness under our Revolving Credit Facility. No borrowings were outstanding under our Revolving Credit Facility as of September 30, 2025, which had an available borrowing capacity of $1,898 million after considering $102 million of letters of credit outstanding. Total cash and cash equivalents were $1,126 million as of September 30, 2025, including $69 million of restricted cash and cash equivalents.

In September 2025, we paid a quarterly cash dividend of $0.15 per share of common stock, for a total payment of $35 million, bringing total dividend payments for the year to $108 million. In October 2025, our board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on December 29, 2025 to holders of record of our common stock as of the close of business on November 21, 2025.

During the three months ended September 30, 2025, we repurchased 2.8 million shares of Hilton common stock at an average price per share of $270.31, for a total of $757 million. During the nine months ended September 30, 2025, we repurchased 9.7 million shares of Hilton common stock at an average price per share of $248.34, returning $2,510 million of capital to shareholders, including dividends. Total capital return to shareholders, including dividends year-to-date through October, was $2,671 million.

The number of shares outstanding as of October 17, 2025 was 232.4 million.

Outlook

Share-based metrics in Hilton's outlook include actual share repurchases through the third quarter but do not include the effects of potential share repurchases thereafter.

Full Year 2025

• System-wide comparable RevPAR, on a currency neutral basis, is projected to be flat to an increase of 1.0 percent compared to 2024.

• Diluted EPS is projected to be between $6.71 and $6.80.

• Diluted EPS, adjusted for special items, is projected to be between $7.97 and $8.06.

• Net income is projected to be between $1,604 million and $1,625 million.

• Adjusted EBITDA is projected to be between $3,685 million and $3,715 million.

• Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are projected to be between $250 million and $300 million.

• Capital return is projected to be approximately $3.3 billion.

• General and administrative expenses are projected to be between $410 million and $420 million.

• Net unit growth is projected to be between 6.5 percent and 7.0 percent.

Fourth Quarter 2025

• System-wide comparable RevPAR, on a currency neutral basis, is projected to increase approximately 1.0 percent compared to the fourth quarter of 2024.

• Diluted EPS is projected to be between $1.87 and $1.96.

• Diluted EPS, adjusted for special items, is projected to be between $1.94 and $2.03.

• Net income is projected to be between $441 million and $462 million.

• Adjusted EBITDA is projected to be between $906 million and $936 million.

Conference Call

Hilton will host a conference call to discuss third quarter of 2025 results on October 22, 2025 at 9:00 a.m. Eastern Time. Participants may listen to the live webcast by logging on to the Hilton Investor Relations website at https://ir.hilton.com/events-and-presentations. A replay and transcript of the webcast will be available within 24 hours after the live event at https://ir.hilton.com/financial-reporting.

Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States ("U.S.") or 1-412-317-6061 internationally using the conference ID 9229668. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-877-344-7529 in the U.S. or 1-412-317-0088 internationally using the conference ID 9071023.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, future financial results, liquidity and capital resources and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "forecasts," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks inherent to the hospitality industry; macroeconomic factors beyond our control, such as inflation, changes in interest rates, challenges due to labor shortages or disputes and supply chain disruptions; the loss of key senior management personnel; competition for hotel guests and management and franchise contracts; risks related to doing business with third-party hotel owners; performance of our information technology systems; growth of reservation channels outside of our system; risks of doing business outside of the U.S.; risks associated with conflicts in Eastern Europe and the Middle East; uncertainty resulting from U.S. and global political trends, tariffs and other policies, including potential barriers to travel, trade and immigration and other geopolitical events; and our indebtedness. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I—Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which is filed with the Securities and Exchange Commission (the "SEC") and is accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Definitions

See the "Definitions" section for the definition of certain terms used within this press release, including within the schedules.

Non-GAAP Financial Measures

We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including: net income, adjusted for special items; diluted EPS, adjusted for special items; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA ratio. See the schedules to this press release, including the "Definitions" section, for additional information and reconciliations of such non-GAAP financial measures, as well as the most comparable GAAP financial measures.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 25 world-class brands comprising 9,000 properties and over 1.3 million rooms, in 141 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 3 billion guests in its more than 100-year history, was named the No. 1 World's Best Workplace by Great Place to Work and Fortune and has been recognized as a global leader on the Dow Jones Sustainability Indices. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the more than 235 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on facebook.com/hiltonnewsroom, x.com/hiltonnewsroom, linkedin.com/company/hilton, instagram.com/hiltonnewsroom and youtube.com/hiltonnewsroom.