HLT - Earnings call 3 2023 | Hilton Worldwide Holdings Inc.

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Operator

Hello, and welcome to the Hilton Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Jill Chapman, Senior Vice President, Investor Relations and Corporate Development.

You may begin.

Jill Chapman

MJ. you, Thank Third Hilton's Earnings Call. Welcome Quarter to XXXX

in to we obligation update include our that today we speak those forward-looking statements statements. our or and like today. begin, would remind We indicated from revise discussions materially as Actual only could these you forward-looking made to results statements, forward-looking Before statements. differ the expectations this of to morning will no undertake

differ, could discussion see of the cause some Factors actual of the please that section filed to a Risk For Form recently risk results of most factors our XX-K.

refer In addition, we measures certain will to this on call. financial non-GAAP

You reconciliations find press measures our GAAP financial earnings discussed in release and can website non-GAAP call our in of today's on to ir.hilton.com. at

President an our and and will will Global environment our Officer, then our Kevin operating current President, our Nassetta, overview results the the the Financial third Executive provide discuss company's and outlook. Development, expectations review Chief for Jacobs, Chief Chris year. morning, and of Officer This quarter

Following your questions. their to take happy we'll be remarks,

With turn over Chris. the that, to to call pleased I'm

Christopher Nassetta

Good by Jill. that unfolding today. thoughts today in with for Middle our joining those saying you, wanted events to Thank everyone, start and I by of all East. are the that morning, tragic impacted thanks us the are

humanitarian the in the Our International Committee way for we the security safety and support Red number in of helping relief of and Cross. well through priority a efforts as any including the guests can remains our the for team as organizations, members the region to crisis

to continue adjusted of of on and our drive shareholders, for brands, year. greater guidance system-wide pleased This to $X.X quarter, than we billion We're remain return returns. billion ranges. The the cash model and bottom high of to and to $X.X line supports the to end strong and results. returned our shareholder with generation top Turning above we've $X.X RevPAR, performance. track power engines business and billion free adjusted EBITDA flow meaningful all another resilient EPS commercial strength our Year-to-date, to full report more strong

quarter, Demand points transient year-over-year, all regions, for RevPAR levels, across continued off strong segments peak by business group. and with our percentage and just point recovery X of pandemic and increased the system-wide In prior in improved system-wide highest the and XXXX. boosted reaching international only quarter level post with September X.X% X shy occupancy performance

up versus X%, transient quarter. in XXXX, year-over-year, rising accounts both and rose rate XXXX, RevPAR grew RevPAR grew demand business small basis the both performance occupancy. outperforming shifts, XX.X% RevPAR drove with driven large XX% leisure Group by second all RevPAR and XXX growth segments sequentially quarter. improving of increased mid-week versus holiday accelerating system-wide Business second nearly and RevPAR the transient was the quarter. Compared points Overall Steady second Adjusting rate growth improving. points versus and each. for basis leisure RevPAR the calendar roughly XXX quarter with to X% X% versus and

the up exceeded quarter increased quarter for RevPAR the future periods. all peak the see lead XX%. for side, since for booking we levels group position than group and arrivals is On the XXXX in year-over-year, to all in for full positive the XXXX Group trends quarter demand more and now pandemic, first continue XX% future

driven fourth drive continued compared group bookings. in with further fourth demand look for expect better we by to expectations business better-than-expected and XXXX, increased to group RevPAR along quarter, in we international As strength transient third quarter, acceleration markets, improvement the to continued the quarter in partially and performance

now to XX.X%. XX% year of expect As full a growth result, we RevPAR

year-over-year. a near-record saw to We with another of quarter Turning increasing robust XX% rooms signings development. signed, XX,XXX

Overall, the benefits at Signings history, a our versus in stands demonstrating totaling XXX,XXX quarter the diversified the of the XX% and the brands. increasing signings we our on now highest spanned Conversions highest remain accounted year-over-year. the points. quarter. portfolio, sequentially XXXX up of company's annual levels second deliver pipeline rooms, second in track double-digit XX% of to our for in industry-leading quarter record X% signings Our family history, versus surpassing percentage by

every industry XX% strongest pipeline construction more of also We Roughly quarter under our we of under quarter construction, delivering continue QX more to its in of another expectations, up and accounting exceeding than currently construction rooms for is our any strong start delivered hotel particular, and company, year-over-year. with half starts, have than major share. XX% U.S. the since region of XXXX, other

XX% the Asia Pacific region, totaling and second up year-over-year hotels the in in and achieved the several including nearly of hotel XXX the quarter. In quarter, XX% our Japan. celebrated opening the in versus we We XXth quarter, rooms, XXXth anniversary XX,XXX our milestones opened we

hotel lifestyle middle Times Tempo room, lifestyle including well-being of the development. property our the Hilton. of with and debut global We brand's Designed mind, in New part York the as now TSX by also the our in open XX,XXXth XXXth Square, first opened is of

with and Hotel New portfolio its with Additionally, of Cannes, Savannah, a growing France vibe the its Canopy by York the of of the properties hotel latest flexible local Curio celebrated the signature the in Canopy with Motto south Europe. in increased opening Hilton and the Alley making Bankers opening Hilton's launched into the portfolio addition entry debut Canopy and Nashville, of across city in its its second Tapestry City. design Georgia. in expanded to

is in our segment. history. start and in Hilton of of more debut last it. in we brand grand reshape conversion are solidified the area any you the a expanding is Connecticut to see announcement I the months into premium by economy customer that of premium base. The Opening journey by our also XXX quarter, just this launch, brand, Hilton's in foray our I Mystic, and During cost-effective would With deals Spark of go to the to economy X think segment while the we the away. visited opening the fastest the Groton owner the was than Spark property market Hilton. Spark after encourage blown our just negotiation, newest celebrated week

Announced with months negotiation. tremendous XXX deals Project to HX just X also demand in continues see ago,

Mar In in Positive fact, into quarter later notable on fourth of property XX% openings. of States. has we're breaking forecast open the northeast ground continued year resort. for which today, We in open the Indiana, including and we'll a the property will an account late full to first-ever conversion XXXX. approximately XXX-room Hilton expect openings Cancun the several the part United Tomorrow, Caribe, we with openings all-inclusive October, Kokomo, summer in in announce in X,XXX-room conversions momentum

our X% net and to largest largest momentum XXXX to in under-construction approximately in fourth the with our return growth nearing continued accelerate unit an momentum pipeline For prior the continue into to we in quarter have forecast signings in inflection to year, positive highest air, pipeline X% are ability growth identified history next our openings to expect level conversions, a and next X.X% openings confident our unit the for hit X%. the year expect growth we in believe to history, rate. year. our with in We we X% With full the meaningful to and point positive net in of uptick of

growth RevPAR is algorithm net going growth and fee alive and above well, expect of terms we contribution, plus In unit our fee forward.

rates, growth mix royalty portfolio pipeline, XX% service rising fees line in and XX% our gives in with ability RevPAR This room. to focused increasing of balanced delivering with full per service diversified under-construction high-quality existing and confidence our roughly Our along remains continue hotels supply. with and us

year-over-year. continue members In more loyalty and year-over-year quarter, several for program. remains meeting We the evolving XXX million accounted XX% our Demonstrating guests, to than commitment basis innovations. strengthening XXX occupancy, Honors Honors Hilton of our grew up the the fastest-growing we membership also XX% Members than for value more preferences our new proposition of recently to announced members. hotel points

our will program next of mix. for and experience which long-term multifaceted along approximately Business year. digitally feature transform for Hilton business XX% enterprises, with commitment for early designed of account travel As for business booking to will website new benefits especially part we The launch targeted the our millions a small- medium-sized SMEs, of

our events and capabilities, directly event booking with customers blocks enabling book without expand meetings or to will guestroom spaces we on Additionally, our website.

agreement our For expanded travelers prioritize an universal with install who the industry. to up EV the in planned wall recently making to XX,XXX Tesla network hotels, largest announced we sustainability, at X,XXX charging connectors

our for also continue be culture. recognized to We

Workplace Top United without the And Work. to yesterday, Asia #X our spread and quarter, States than hospitality every the a we're Europe in year we named each reporting the in would team today not by possible of results Great we for members in The the the strong were fifth and were Women Hospitality Employer named During be day. Place just the for Best in XXX,XXX row. light warmth and who more

we're very the in With ability pleased continued from the strong unit demand, lie net forecast, record tremendous quarter, ahead. further accelerating about the to pipeline years ourselves we're and the industry and with very differentiate remain ahead. our coupled we in optimistic Overall, performance with opportunities growth that confident the our in

over on results full for Kevin details expectations and Now for our the to I'll a call more turn for the the quarter few the year.

Kevin Jacobs

good and everyone. morning, Chris, Thanks,

international and versus on group Growth X.X% currency-neutral grew in comparable driven year was travel. and strong as transient and RevPAR system-wide performance business as quarter, recovery in well the steady During the strength continued prior leisure by basis. a

of fee was to franchise growth growth. year-over-year the XX% performance the and EBITDA and fee high license end RevPAR by Management range. guidance grew largely Adjusted driven year-over-year. up quarter, XX% fees in was and Outperformance third due better-than-expected $XXX better-than-expected million exceeding our

was year-over-year end share guidance adjusted of XX% $X.XX, our the high special diluted earnings for quarter, the range. For items increasing and exceeding per

to Turning performance. regional

remained recovery to even comparable Third the in performance quarter, points demand versus group. the transient grew business in increased XXX quarter third in Leisure with year-over-year, tougher basis second by year-over-year the XXXX Relative RevPAR both peak improving comps. XX% U.S. continued RevPAR U.S. with strong led U.S. quarter. and levels, X%

year-over-year. RevPAR U.S., group XX% In the by particularly demand, third Americas increased urban the driven in outside strong was Performance locations. quarter

In and travel. grew strength benefited continued in year-over-year. XX% Performance from demand Europe, in recovery RevPAR leisure business

travel and both strong by year-over-year, growth led In demand region, Africa XX% the increased East RevPAR summer rate Middle from the season. and

was and RevPAR demand continued The year-over-year, Asia XX% XXXX. up the XX% Pacific in was China growth, quarter up year-over-year. In Asia with in third saw the led higher region, excluding also in XX% recovery year-over-year the by China. rest China, up RevPAR, region of XX% RevPAR than significant Pacific the quarter

guidance. Moving to our

year-over-year improvement sequential versus X.X% continued XXXX For the system-wide to and fourth with quarter. XX% expect to and X.X% between growth RevPAR third quarter, the be XX% versus we

to items $X.XX. We and $XXX between million and between expect $X.XX $XXX adjusted special and diluted EBITDA EPS for be of million adjusted

the of EPS We We between for RevPAR For note year between expect not $X.XXX to XXXX, share guidance and forecast growth be $X.XXX we between adjusted future EBITDA our special billion diluted items of XX% full incorporate do adjusted billion. XX.X%. and that repurchases. ranges $X.XX $X.XX. Please forecast and

return. to cash capital share $X.XX during quarter Moving million. a total $XX We for third a on paid of the of dividend per

quarter. $X.X dividend Our a year. returned quarterly billion $X.XX share to for fourth billion in $X.X $X.X expect have Year-to-date, full we than the Board we dividends, more return authorized per and of between buybacks of to shareholders the form and also and in billion the

We limit This earnings completes many so you one can morning. We may speak on the to yourself details earlier to open line any question. now third ask have. our our would you possible, we the issued for of as found be would like questions in quarter release to you Further remarks. this as results prepared that we with like

MJ, first question can have we our please?

Operator

Bank question first Our Instructions] Kelley with from [Operator of Shaun today comes America.

Shaun Kelley

think big XXXX I improving is outlook. unit growth obviously here Chris, incremental So your net the

expecting than better were out there. meaningfully is this think I people what

we you What some you'd you particular obviously, terms kind help in a of kind So like give of ago? to a of seeing color were out little just what details. on, signings, bump confidence the that there call something of where in would dig for from Is us? quarter you're bit. us and up kind But here starts to gave in

as U.S. And we're specifically, tougher remind the of fighting just us seeing here that and environment. sort activity know exactly construction levels financing we of you're

obviously trend. buck it seems you're For to owners able broadly, that like

Christopher Nassetta

starts to We and like. to Yes, Yes. X% felt quarter, and range success of year of of and about, X%, signings was the range a broader broad reasons. we lot good a time lot left obvious going we which in last of and and there with see was but a happen thus middle to the gave a what for were year, conversions

on we what fourth so the reported Kevin's And to in as saw quarter, my continued third great you that's and success quarter. in just have and the continue comments, in from we

comments, a we're to As double-digit I prepared said signings. by have going on in my record percentage year

quite We of obviously getting conversions aren't where continue across close broad years we Spark. they of in being to the of have we've were. where were, a starts to which with they to think elevated of back range While including back what level from they're to going XX%, course, seen at brands and, is an addition recent

information. point have year, And we have model. a but model, have by definition, a in we so this This confidence the have year, always -- very middle the just we as in we much the of granular don't -- is at is the

going have identified have a a that the for deliver -- we'll had year next conversions the there. in bunch do a lot we're is of in year, I identified. a we have what as -- Now, my success lot of Obviously, briefly, quite we we of but to lot comments year said we've

confidence to in execute X%. It's we region we some, with so reasonably for up. we'll given the is have the hotel able by think, is hotel where assumptions on ground by what momentum be end to And X.X% region, conservative we conversions, this up

And we on plan believe it didn't and so the that is say largely production. if in things underlying and are we it momentum it, a that is wouldn't based

are it, you prepared I I get and every to we the about said confidence comments, at to I to back my -- X% going all X%, As time and we I when will. questions get looked we obviously in know have

way. go I think it's things our few possible next year if a

at I think bottom we that end of But the October be range. in XXXX. we're could still

step about it. time. going good We X.X% feel take really it one X%. refined we're at to So a We to

look I potential find than point. the ever even a of when more granular we'll way. in think data talk, it probably and, at we our upside if Honestly, there's time few I risk Next go a as more said, this downside things I at way, all

Kevin Jacobs

And underway back think asset. bit optimistic a financed that mean, the and and And you're you you to story, and go hotel, think, fundamental the circle little about build the environment that you ready -- think you've you're leaving constrained. growth, I costs. to going are want financing to asset story to heard U.S., that then are I people nonperforming as stressed to getting I being better think But more I the look, capacity Shaun, entitled are additions you're a off than the about are by be story about fueled things I where just think with also if a around

We continue to share. take

story And as in well. I good it's so think the a U.S.

Operator

comes question Joe JPMorgan. next The from with Greff

Joseph Greff

pipeline? how accelerating in narrowing? just of I a the next that Is room staying Chris, long understand, gross mean on staying the you average, is But net you're typical -- trying line line well limited-service that understanding longer the past basis? is a growth the year's all to growth. term, typical on rooms pipeline full-service room are as or as the hotels How here. rooms at periods seeing more signings narrow in starts like-for-like pickup the seeing function accelerating time time

Christopher Nassetta

if head, my sort mean don't stat pipeline I region the is service say every couple years, it would X those on or I in. are limited little all I say, directional the in answer. the but years, world a together, generally a of order pipeline hard what directionally, greatly good. of average I have a you're those service, are on but of in you give vary region -- think in pretty could a different. I But full the it depending X I I'll with of would

that supply say reopened. what that that, and everything would have down, a deal got COVID you and I chain And extended we because the great then issues is things moving during stopped again, happened after slowed even out

with down extended little supply a You still things slowed I parts chain of harder to things closer a just that do said. little things we And Kevin now where were a world, more That but bit done. has to to get have in what were. we the to has just think lot the It's come down. just lot of where that than being a back

taking And of and X so are getting it's projects they financed, had start, they're X little a to financed, those maybe they taking it's a little getting longer. wanted bit but or longer. People if bit X

gestation So little I a is think longer bit there period.

NUG. gestation are from the when conversions, into that's short obviously, period a deliveries of Now pipeline XX% super

so on period, XXs an about would helping increase take right it same. in to gestation I pipeline the I say -- And being with and would of in the that's if is before time were we say, the conversions COVID, you relative average, low the

construction, are that when obviously ground, all have the we're for And deliver. deliver -- are under construction. and project year, what They're think think largely we in conversions that's being lines for on at they're time with Again, I'm my a the other doing under than if in going on of those our sort we longer point, been. And at new construction, all we it's it again, bit in not like everywhere still look dirty the just the math meaning touch had and have a ground of to -- of -- we we a head. sort quick we little But it's working than in, this every the pure team that of the next to world myself, is which factored owners we projects. year year that know rational repeat they're on will you those

Operator

Bank. with Carlo next comes from The Deutsche question Santarelli

Carlo Santarelli

how growth growth kind call of of I kind about relative of the RevPAR kind plus little we of should kind the that NUG fees bit business relationship. think fee the dynamic. the was to wondering fee and the you for could break expect Chris, to a outpace think said to RevPAR component NUG that operating fee and you if in -- that how you of about down dynamic the earlier plus whatnot

Christopher Nassetta

or bunch a we'll Yes. it of And going up a on granularity do the on per we that year on We XX give March there. room, talking full lot down. you going we a about do of part mean next when I fees and good questions it. and day get more a put reason of in that's periodically day like they're a

go of Because exists see and continue as we forward, would happy. the That's that business greater X. renew just we our algorithm business that that last we of same-store it getting today. condition those we We're with ultimately models. about growth that adding be we in license than because Why? is fee model wanted continue enough. at Analyst Day up rates described in question we I had we we -- growth, an years growth units, contracts. publicly put But -- our growth wanted to the there that we I believe that what would to it. going fee see unit look we get that the We're store. combination same-store And and increases the things to the as we or sort with today, say we had license are associated as the we how ago fee when new -- that, mean the give of fee that fee leverage us same think will

mark-to-market. We and on average out system sort have rolling every X% year getting of of that's the

license moving our moving up. we're brands, -- a of bunch we're And on our fees

card, pieces our we of a a think grow -- will credit having base. of HCV at that's in fees I get on then when different which as our So average. core over great base for and that, said of biggest co-brand how it non-RevPAR of business, think, pieces The of success. of we're X you we've algorithm bunch bunch you that. And time, all are times, it business both higher our on RevPAR than HGVC, our our factor There's

those if just room And RevPAR than you are that will fees. simple growing when our so be then translates math plus that our up. when look not why hard we obviously fees, together, you And do and per that's fees out to RevPAR add make model all you put that of time, into equation NUG. of fees believe, see you sort and at greater And it go you room assumptions growth if it's those per over you sort

think marker different want of the That's it give have business will us to out people bit them We transparency, sort Day math of But a and abundance pretty model, the to ask to there. an is Analyst more of -- to just an to reason -- obviously do is things, -- math there, a we'll everybody put our I the arithmetic -- of is give that. sort in one Again, bunch So little straightforward why of easy. -- always pretty but we we granularity. that have we think think we're and going is be obviously have compelling. we the and

Operator

with comes next The from Stephen Morgan Stanley. question Grambling

Stephen Grambling

of guidance going to only dynamics have Wanted key which industry a as money not went the just even on you think up in money are about bit and Can your to little also around remind evolving us up. general money for conversions we been XQ key as a approach beyond? the touch quarter, how fourth bit, key but

Kevin Jacobs

Yes.

key all, consistent say our money time to here. So has any associated we've have been deals than Stephen, key with of of first that our still money overall XX% entire We have them. approach been the less I'd very

overall to one that, our CapEx I it's say out for upped I guidance. -- get should more -- I bit think competitive you that year, to little overall those little we and in competitive more a point happen just for guidance we a have is But expensive. have environment more recognize this guidance. not to money That's bit be would that's tend CapEx. a conversions, what key

carried fortunate at get relatively higher the win deal they We business deals over. heavier. last to really but where year, a lighter, be year more expensive year as be a told quarter. was upped It this deal you about in didn't one end up to closing which been the had to we last this end a our bit a bit fourth caused And we've of year large the We've until little few little big guidance. that

you that's sort forward. X-year at low low of it. be a total back next average, way million we CapEx the look mid-Xs sort think CapEx, into think of way to And we're If of right -- and I a $XXX south guide of the think Xs total range normalize going will We basis. about year on that to it

Operator

next David Jefferies. question with is The from Katz

David Katz

details of lot a acceleration year. into particular, in covered the next NUG You and,

help get I'd for there to pitching Is you're landscape? money? improvement of Is you the function key unpack that I expectation a opportunities win. How? know how it some just Kevin the bit. mentioned If a love why could taking are little share and sense a in of out And us there. for that you'll

Christopher Nassetta

year, built a granular say, this next I would I it's for is very said granular -- very analysis. a in.

production in all it's So conversion. or

we bad. share. up So getting I is really a mean as financed. in great taking -- Kevin but Actually, I the would say not end things we environment, implied, tough are not environment think do

you to perform of talk -- more they brands say of broad because than much base but I a think getting So better. if we're opportunities. partial, Why? mean the our I'm would our development fair share I owners, obviously more

highest do going in do highest industry. going brands performance. that want And the are the they deliver is and they they're go their the to share few market deals, the a returns, to best get Our to them and to if only so

although it's So it's financing still slow. environment, open I and -- clearly a challenging mean

come We -- for guess any that numbers going chance, and haven't something We it will bit little things. sort will better at these of changes to NUG and there's is rates matriculate think my it's made assumption a get get to year, because point a to some next wildly. down big next year

really said, haven't happen that -- as I we what's made production. in we is So going assumption, next because largely year to

has been as think of this believe think again, be I will that And on we said do year to year. continue built we XX% we that for is and do number I years share. and this a conversions, into But take we'll happening

have I think too our that to I we conversions. enough momentum the confidence giving and are feel than going we XX% we'll you be about have share to year next good the fair more outcomes basis. that that of And range about get on

guess my a few point that said, things really is, able of an as hit we've be might definitely way, inflection I our we And outperform to if go view.

the can to moving speak, we bottom in about it about momentum half snake, think the like really reason. it to point, you see you -- you rat through see of If And starts. just so inflection and now you're sort to see the signings was half terms produce. shift started I second But of good things NUG starting and the know could last kept the year, second of of nervous year, and and has to been starting for everybody out last this saying I people. the

a up is little. quarter Third

You'll hit And a you're very again, what see to going have the large back we know belief, is on inflection, our the a way quarter, production and in delivery quarter. of up. we're given, fourth real is just point you've

to So that's a lot unpack.

broad the development any from we of is here. from core the material no is where standpoint in financing world like way answer are there of and think assumption the improving I

Operator

from comes with Citi. question next Rose The Smedes

Bennett Rose

about just before looks to I And for group is you to around pacing wanted was up very your as you're point. this well mentioned book enterprises. their XX% to it's guess and is coming at of you if terms comprised wondering maybe that could which I business, XX%, what next remaining into a talk from year next comments back in hearing go I smaller larger just just you bit appetite like the which of have little businesses, year. business of sort And

Christopher Nassetta

for Thanks, Smedes the question. Yes.

and I may X group I business talking was for way is different The the was does up next XX% our XX%, on groups. but conflating sort turn comments. Group say, think coincidence books coincidence. groups, XXX-room out It that of small be transient. And large, group XX% SMEs I'd a of plus of that's business is business it year. about you is total by medium XX%

by because as of look mega of in at the or in think look to half year. going the last of it this these it started we I will business much planning sort As of were open they I It like long millions They happen out the still to open think, dominated penalties wanted and things commit is plan has -- of and what's close. travel, close, dollars of made just them, didn't been you time group get year that the some But and next transient still them there's the a prepared takes start spend the they next to comments Nobody you year. that small second in always to business I've at already see these got groups about in know we everything else. events, return can't think business by -- groups. and comments, will implied, medium

get getting they space, then long the much, to time, people takes and for get much a got to and groups. space and these -- then harder city-wides big a So it's waited it

time. takes just that So

you that it needs shift pent-up of to think groups they think a because year, next an have decent I huge the large be radically, I to not orientation will demand satiated. to a shift but amount see will

My around. in going is you'll happening so next. a It to it. see will shift guess And stats surge the that's start

this of think Over hard long think that time, probably -- normally. directionally I done a I it's more like I XX-XX, like have a But time, it's something data don't sort point. like having

so of And of you're next XX-XX. think to going more that I get year, instead

see the more going up groups a in take to short leap a to to intermediate bigger get term environment. You're the to normal

But the we're big, with are seeing room obvious, small, went if right? lead quarter -- it this seeing we the seeing strong. sort we team I lengthening assume, every are underneath the is off from -- just everything. do of peak question, whatever. in is groups or we're seeing hook, we in as sat our because strength in of times We're very strength through Tons Group medium, what and sales demand, all,

that a for XX been group not there's in built have -- years. lot country this of been everything Now hotels essentially

you so places go. this have demand, fewer have you all to And

out. have further much, groups advance to booking start So in and much planning further

And seen in of not very the a we've good. and noise at this so lot -- group going real next like -- impact point to is the contrary. in not demand economy It's seen terms any environment of notwithstanding year. the where is about We've like for demand not the the

to Our doing they're teams they demand. with saying up are everything can keep

Operator

Barclays. with Montour Brandt from comes question next The

Brandt Montour

RevPAR the sort for quarter year-over-year RevPAR out the growth the quarter arena quarter. of in that versus translate the Maybe into fourth of not see looks And your fourth quarter guidance Kevin, strong, growth. of don't third EBITDA third you sort of

or highlight want the why diverging. timing if between would there's that little wondering Just be to anything X you and quarters else bit a

Kevin Jacobs

to, Brandt. sure, happy Yes,

quarter fourth top of We and I obviously, our That's FX of it. we huge, line expense, guidance bit small for a say, the increase third little really through, of then for quarter. think, about for amount corporate in raised is amount timing a little bit, Israel. and yes, bit the flowing not a there's it a little did the the

Operator

Farley with question UBS. The Robin comes next from

Robin Farley

in year for visibility already much those of have of returning to the well XX% come XXXX. The the ask of there. that to year, much would of much conversion understand a said wanted I kind you us prior next don't topic typically of give you books how year, sort would conversions as unit percent the the growth. how sense in of on of Just of be on? to versus in sort your year, the in October as about kind Can visibility you

Christopher Nassetta

the negotiation. would would of XX% maybe the form wish pipeline, would But of be great way in form or a of if be to maybe I answer. a great question. one guess a lot different. in the I in -- had a would would less negotiation. done but say, to sort in I it bit say be books but say -- would some be be work Every than on is another year I wildly half, gets in not or half, had It's the XX% XX% it's not nothing, it Yes. I it, I wouldn't would at some of to less year. XX%

Operator

question next The comes Scholes from Truist with Securities. Patrick

Charles Scholes

rate XXXX. you're upcoming for how thinking about corporate negotiations question about A

Christopher Nassetta

of of about really -- XX% we're business, the hard like It's getting thick just this the X% pushed have that's Yes. not SME Keeping We pretty and of of feel small of good point side -- I mean the is part of in on near relatively we This the given the done. sort business. at it. our business. the that it. in into business we're never it's mind, a

business. So whittle our all single X% of at in probably digits. the together, down, it But this and dynamic of when It's upper point. is about of dynamic, fixed you this the when add think point, it we pricing the most at you the sort it's

Operator

The with next ISI. Evercore from question Pfennigwerth Duane comes

Duane Pfennigwerth

RevPAR more a out share second. the you leading? of on Chris, have more same pull crystal regional the or into international is Could XXXX? year XXXX? Are I'll Does ask ball thinking a next you thoughts high-level growth you the to year change of some which most your for leadership with maybe domestic regions growth-driven potential into

Christopher Nassetta

U.S. rest it -- on between the will balanced be world, think now. mean in we're reasonably be lower too world, least based seeing a U.S. different, but I will terribly of rest smidge it and think the maybe what not than of I I at

I the to would have view process. I recognizing when And the global me, it on exactly low where if see the we We're everywhere, positive of where way. process, for slightly premature give to whole where growth growth. think do season, a we But the early we'll call, we obviously, we you would not then be. will be, -- it you We I judge would finished don't RevPAR we'll we're will to say in it's see rest -- have of refined see in said growth. so region And world, by mid-single-digit middle a next think budget the

you now doing that really this would of again, would Pacific bit and which, think in part terms the bunch and up different, but is year was be of open one But most a well, pack too I terribly little comps, just would higher; Asia China be not of not. if recall, rest notably the the reasons, lead China, did for of first again U.S., a that would world,

very So the view, tourism will in in have you will have carry in now. that's and China travel there's about in a then lot a very a China, economy. strong which it's that think But point business, We noise everything from easy the of of start the of their China you'll strong very, beginning into given happening comps. year, some

COVID pure of they're getting normalized -- of in issue. from open, more. growth thus, you're getting will lead will comparability think other the charge. part digits, all world but given I where the year bit going say, would will what from part as these regions comp world, was And of -- issues, we XXXX little sort converge and, point be, and view, is China, have sort -- what to be China would year-over-year say, first we of China But where you're to a probably the not RevPAR -- they're sort would think a comps, I say, out it going of to to first open I is now than, the of of APAC low in you a they're almost because the the mid-single the So will where COVID everybody

Operator

comes from Chad Macquarie. question with next Beynon The

Chad Beynon

be of occupancy terms a Chris, rate think decline you versus 'XX? guess, basis talk more in I Just of in about a back? of focused on to Should occupancy versus off? hundred or think percentage just should And there can come then more about hasn't Just trying this importantly, term. is as points occupancy. how week 'XX the day discussion, couple medium exiting we still about a that the occupancy permanently

Christopher Nassetta

Yes. QX, comments off. only I September, we actually points in only mean the XXX. were said XXX were prepared we in I And that in basis

Hilton. exit levels to I So at to getting closer this year but for of for and the occupancy industry think least prior we're going closer

at we are strong, what's really than weekends year, the you if back. able is and look happened, is you're to into we're think particularly which lot U.S. the don't base, group in big next I were, have obviously really of is stronger the happening still get the business cities build getting you what's base as leisure back, as in midweek still particularly a they group

rest last leverage going levels you're have And think, now. given to we have just year leg think business commented, recovery, back already the seen allowing XXXX. That where robust that I right the off is, you've Well, of you comparable don't group big base really of. stool a the of as occupancy to are get group then the bookings to of to sort you to

services that's year crazy, group look I very everybody year, the we business, around nobody to like SMEs, and it that rest I of you as and and technology bulk just back, workforce all those know So feel some more. wants of still the segments to like traveling and driven and have I issues then mean base haven't -- is most But are suspect by that reduction is they do again, for as and -- were. travel overhiring the but that that. there's even good. people -- go get next will the rebounded going much the you financial corporates, than the say, that through and more have industries, traveling of of are makeup think And traveling corporates the as they they're in I people and

-- we occupancy. of prior So not to I levels believe do get I will don't I back do --

think will next I it happen year.

we're quite not but getting we're there, think close. getting I we're --

about next mean, and certainly, I it's think probably you as would early, split look. the equation year, a rate next occupancy, between think year. but I between X pretty early the little a say as it's it's I balanced

Operator

Baird. with Bellisario Michael from comes question next The

Michael Bellisario

Maybe more still as wanted it? see to end are luxury. today think as higher your ask white where money just for us space maybe you then customers importantly, dollars asking on remind And what Just at key you about investing the the price is point?

Christopher Nassetta

Yes.

a space luxury We've it white the for us bunch. is talked that think about lifestyle. I

now. right the in doing space bunch are of a work We

next will product year, market a come will -- think the we out have year. in next we I

sort of got That's we we've launched lot years, of once Spark work over cranked of So there. many up we HX that out done engine sort and next. a but

largest the I customers in listen, think the -- in loyalty still than the what I fact growing. the reflected love I we the -- level is higher amongst highest engagement customers certainly is think have. industry. represent that being And our the of think Honors our anybody mean, sense occupancy know of fastest I we and as I in we

So both with how frequently, they geography, the I to well. Honors created, products engage we think our and the combined related have, what working ecosystem you've customers talk are saying effect Honors that network built about we've the Honors loyalty, you do experiences the us you to that is really how with and

every process it is out, if there of over for think going don't through of our customers XX I anything are just that I'm X really customers. that sat we're in nights hours screaming with I planning are with because being a So strategic People focus blunt I'm there loyal nothing but customers loyal groups customers segment you our was there. this to were to there's call, There going us, mean lot to gosh, unpack was cetera, on need not like, this et need you that to and -- I saying that. do not a et us, cetera.

we it's want we and to doing we why depth more on luxury And why we Honors It's amount the members. do think on more it. the the pleasing even and effect. that breadth more time What a already of it, resort geographically, halo is which we very the lifestyle. in in think, having have is luxury of the is space. space, believe beneficial, having our end know high But a We we given scale do creates significant our to margin, spend

I'm we're runs just do giving if not at world. I really, over away we the giving more opportunities honest, customers who our but Kevin, want I'm we're have The end, too. travel away only high opportunities. -- being other to all development, at reason like development looking the It's just

product and many them. super build really have and a luxury that lifestyle want are have owners of a us, hotel, to to We for we loyal them don't

it so -- so And think because a just have makes literally, our and product, don't we people they're me doing crazy, will rate. other obviously I that with growth it that enhance that

is very Spark thing. HX Tempo a lifestyle HomeX. bespoke -- It's it's or luxury or or not like Now not

have to of thousands these. going not You're

have have You're of to at it hundreds long, who going I not look mean been people even for a long these. at time.

You'll be them. fortunate of dozens have to

and having every really the in effect. our products right continues more high-quality room counts, think, But locations, network to build we

sort I works. said effect many a And network we have to love that investors, -- which this of I've we have we so many times where is are, an

members million geographic love have diversification, We end the diversification. the Honors year, million They XXX have XXX we'll love that by the us. next very Honors. to of year. created. the brand that They are Beginning love loyal of network They we've

that. -- more doing luxury doing keep Conrad Doing there is and the is ecosystem but luxury fabulous. there add works. with is we'll to will LXR, lifestyle -- Waldorf, And deals growth, Those so really

point I think competition. success case vis-à-vis the the is that is having in Honors a

growth these we our we it think So halo will. to always at add incremental incrementally. rate. can add And always Obviously, to And better. luxury -- as add I make products that lifestyle like -- want look all can we

Operator

from question next comes with The Raymond Bill Crow James.

Christopher Nassetta

Hey, Bill, you there?

William Crow

for I'm on sorry, maybe X-parter on last Quick the today. Chris. NUG, NUG question

Christopher Nassetta

yes. that A lot question, of

William Crow

couple of a specific questions. Well,

just regards think pipeline you I'm wondering and that units, the are China risk already First do stand of And opposed as the constructed the is all, you any getting what today? headlines to surrounding Garden the it to pipeline opening as Country in better. as

is announce on more and in hotel the is money, trying specific figure out key you're the key that. that's a payment. Boston. $XX like circulating, million to going Hilton economics the of just we understand and tomorrow are money on I'm conversion part reports on to the payment the question second The The to a

Christopher Nassetta

in. in Garden, overall me huge Let maybe I'll On tackle our pipeline yet jump it not is of a Country can China. both. component -- Kevin

the we're like you will NUG conservatively there. feel I there's anticipates think don't happen what guidance any giving certainly, And on risk. we so And

venture meet HomeX. residential business. keep it very we They Country milestones et it. a but the don't, exclusivity forward this of committed all said, apart And remain Having entity if totally cetera. they et rigorous have their they to Garden options to from order doing obviously has to issues, move very lot separate a is that have in could have cetera, of on ourselves, with we that sorts They

are not Garden community of them, we're very So franchisees well It's little HomeX owner these and and is China. This of all owners, is by building Chinese is that out any it's and going regions the these. very by in are money. it, property with well MOA, a doing recognizing the -- developers received very not their a individual received where is customer Country these

they'll meet they it's not ultimately, a like have for capital not they remain they It's them. sorts they suspect don't, it. have the milestones, of don't me will stick with very what to to like long. they're and we so it. to think drain committed it. I all wait -- I And is very saying it's If mechanisms. to They If profitable, and we us

So it's I think we're -- think fine. I

the to HomeX that up key the the community U.S., the super to in profitable in ones loves in China is come on development just the like community we've think love super it. I opened development it they popular, ingredient

HomeXs So we'll a If that ourselves. get them. means done. do Hopefully, with that it not, of it's we're bunch going to it's

going not name if without named we're deal the would it. have to it On talked we it, we We naming could. about,

key money. comment we're I are those city deals mean being drawing money the to The -- spend. deals think on up big, center, way complicated on the not full about service So key and luxury, is end or of broadly going specific it to individual most that we

our more pipeline of it's and sheet disproportionately, they're may in certain said, those deals more where really competitive, our it's of number density less to deals, have lesser kinds distribution XX% of where they're support. us. strategic And any balance have Kevin we than form of As locations by important

never we giving money that a on comment doesn't single we every money, in I'm are just money. deals. individual are going higher business. never case, significantly We're And making to money it mean key a we're I is and than giving key that for-profit value that's in creating make not -- We us -- contribution. the Obviously, don't that have key way. approach contract

into. So profitable, percent and infinitely nothing we them profitable XX-plus every put are is deal of because

Operator

session. to concludes like Ladies remarks. to any I turn our this for now and gentlemen, question-and-answer back the Chris closing Nassetta call would

Christopher Nassetta

back momentum Thanks, But good We'll going exactly fourth importantly, be more what given next to very year going with pretty but into of have pleased I macro is feel through everybody, think pleased the for about the road to to demand, about today. Obviously, we you view budget today. with group getting you point the we business a we year. very time and that as talked X% what but that. tried process. to the QX, feel give our like get about growth the granular in next much to get pent-up quarter. we back we've in on the good of our feel a rate. obviously, it. we and also view a travel, of on to lot more particularly good NUG And We we're hit inflection X% We

getting year. set it, and So of back you year to and year over. is the make the happen we busy back all up get a get end to that with forward we'll for after We'll got next look to

Operator

Thank The conference has your for concluded. you participation. now

You may lines. now disconnect your

Hilton Worldwide (HLT) 25 Oct 232023 Q3 Earnings call transcript