Exhibit 12.1
HILTON WORLDWIDE HOLDINGS INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratio amounts)
(unaudited)
| Year Ended December 31, | ||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 930 | $ | 556 | $ | 533 | $ | 333 | $ | (65 | ) | |||||||||
Equity in earnings from unconsolidated affiliates | (2 | ) | (5 | ) | (2 | ) | (3 | ) | (4 | ) | ||||||||||
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| 928 | 551 | 531 | 330 | (69 | ) | |||||||||||||||
Add: | ||||||||||||||||||||
Fixed charges | 504 | 502 | 494 | 543 | 693 | |||||||||||||||
Distributed income of equity method investees | 1 | 2 | 2 | 4 | 3 | |||||||||||||||
Subtract: | ||||||||||||||||||||
Interest capitalized | (1 | ) | (1 | ) | (1 | ) | (2 | ) | (3 | ) | ||||||||||
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Earnings available for fixed charges | $ | 1,432 | $ | 1,054 | $ | 1,026 | $ | 875 | $ | 624 | ||||||||||
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Fixed Charges: | ||||||||||||||||||||
Interest expense(1) | $ | 408 | $ | 394 | $ | 377 | $ | 416 | $ | 571 | ||||||||||
Interest capitalized | 1 | 1 | 1 | 2 | 3 | |||||||||||||||
Estimated interest included in rent expense | 95 | 107 | 116 | 125 | 119 | |||||||||||||||
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Total Fixed Charges | $ | 504 | $ | 502 | $ | 494 | $ | 543 | $ | 693 | ||||||||||
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Ratio of Earnings to Fixed Charges(2) | 2.8 | 2.1 | 2.1 | 1.6 | — | |||||||||||||||
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| (1) | Includes the amortization of debt discounts, premiums and capitalized expenses related to indebtedness. |
| (2) | Earnings for the year ended December 31, 2013 were inadequate to cover fixed charges by $69 million. |
