HLT - Earnings call transcript Q4 2024 | Hilton Worldwide Holdings Inc.

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Operator

Good morning, and welcome to the Hilton Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please note that this event is being recorded.

I would now like to turn the conference over to Jill Chapman, Senior Vice President, Head of Development Operations and Investor Relations. begin. Please

Jill Chapman

Welcome Quarter Betsy. XXXX Full Hilton's Call. Earnings to you, and Fourth Year Thank

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

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

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

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

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

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

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

Christopher Nassetta

XXXX and to record Hilton members we any positioned strengthened all needs. a another growth record network of further opened history, Thanks to in milestones. thanks Thank today. year our and happy rooms us in everyone, continued development signed We end new brands report our our for added beyond. strong We to unit by team to pipeline which to guest than you, more a partnerships owners. and for in marked growth meet of other year We're incredible and great important Jill. new morning, number Good joining several strategic our and and and rooms

properties We more guests history. our XXX also our than to than year more any in million welcomed

to segments and X.X% growth all system-wide full XXXX increased compared the For regions. major year, with RevPAR across all

adjusted the model with free generation EBITDA billion $X.X strong year-over-year growth drove strength business Significant net our up enabled of of XX% the performance, unit record demonstrating to and than billion, power growth shareholders. flow us to fee-based line return $X top coupled cash Solid algorithm. more our of

System-wide Turning the increased of end remained particularly events increased RevPAR with trends and meaningfully solid guidance than and points X%, continued continued in throughout quarter, Transient recovery by high by December. X% year-over-year meetings X.X% company occupancy RevPAR in led and the above the trends quarter. more social both by than year-over-year, rate, range, X for for large X% as to with rose Group Leisure remain increased driven RevPAR our Leisure big growth higher Group. Transient In levels. occupancy and Business corporates better-than-expected RevPAR Transient outperforming. results demand driven growth in leisure and strong banks Business strong. pre-pandemic tech in big

Additionally, to booking in for conventions and future lengthen strong rates and drove meetings periods. windows higher demand continued company

X% the we As ago for better growth of XXXX. incrementally quarter year ahead, system-wide bit and to top feel to we we did than X% a look expect line a

rest EMEA tough in improvements We Pacific, across and expect year a to deceleration strength comparisons China growth modest relatively continued steady Asia given growth and in Americas, throughout the across following the year last robust the region. due of

assume comparisons. in growth spending in with business. company We outperforming meetings very positive RevPAR and group modest leisure We transient forecast given steady and levels across convention driven continued major revPAR also challenging by segments of expect all for growth consumer strength

in business by continued further medium-sized expect coupled corporates, large momentum recovery across transient small- and driven in with demand We steady businesses.

markets around rooms strategic brand to XX,XXX to into fourth totaling expansion development XXX nearly opened drive and diversified We quarter, continued development. to the Turning new in approach as our the hotels world.

Tapestry first XX hotels our lifestyle quarter, Australia, the and hotels brand countries XXX Bonaire in in worldwide. the opened and to territories Paraguay, During conversion-friendly surpass helping we

brand and our first of in also opening X,XXXth Pacific in we our in in XX% and Austria. Hampton Romania Inn more schedule Curio and year. opened In debuted celebrated growth Colombia, Africa, our Asia Greece the Spark We of than Hilton hotel versus of last Tru Garden ahead representing in

Conversion-friendly accounted the driving For single XX% in XXX-year for XXX,XXX representing a year, room net half of world. openings in Hotels year, of by SLH added X.X%. year, to Overall, Lifestyle our and Lifestyle the full those hotels continued unit for the than bringing driven hotels, in addition we openings and Luxury properties record our the growth the XXX system-wide more the history rooms portfolios roughly more rooms increase nearly DoubleTree Hilton's of of XXX accounted biggest brands. Conversions roughly across and Spark, than from momentum in

X% at year mix continued date. Additionally, XX% supporting in Even system-wide grew supply biggest our Lifestyle Luxury nearly in year, signings growth and our year-over-year with the approximately rooms total pipeline our to signed XXX,XXX year-end. to up important representing our of rooms existing XXX,XXX pipeline is Xx openings, record these and We segments.

ended in Bahrain, China Waldorf the debut several in Astoria Motto first Conrad also Madinah LXR Waldorf Morocco. agreements the year Astoria our Curio Los Hampton in Al and and We Arabia, in with in notable including Cabos in in signings, Saudi to

our any partnerships history, we for and the supply. to deliver X.XX million acquisitions of in nearly highest X% growth and year-over-year, meaningful existing construction growth of in XX% With industry increasing under in regions. is share the more version growth construction, with excluding rooms continued in hotel our ability X% XX% This company. of under nearly which feel starts strong net the remained of XXXX. rooms half finished We Construction than nearly our with confident opportunities, under more unit of other construction to than year across and year Xx represents strong, pipeline our share all

LivSmart Studios development is slated geographic ahead. Defined we opportunities focus on location by first have its our continued chain to diversity, scale open this summer. and exciting

has Spark's India, brand including the of for recent several hotel, this XXXth debuts, market the international the year. and region scheduled CALA Following opening

to with representing newly We Spark's our growing strategic class. in an country's expect into accelerate expansion Embassy tap exciting announced licensing India to by the middle opportunity Olive agreement

We extensive in following XXXX for with York, also expect thoughtfully Astoria a in luxury designed renovation, usher Waldorf and new an several noteworthy in XXX openings City. hotel New the including Luxury in era continued momentum of will iconic New York the room

Morocco U.S., outside in offers Waldorf located travelers. celebrated the the location brand's sought leisure the to week properties opening will we Hamburg. Costa addition with an Rica, Osaka another just in year, business Jordan, Hotels welcome Shanghai, and in last Conrad property and Athens This of Amman, Signia and Astoria milestone also important the after first hotel in for

guests. with of to Peloton's preferences collection renovations. Demonstrating commitment to our complementary provide content In new TVs. we a our expanded to wellness meeting We several of the on-demand announced access in-room recently Peloton continued guests partnership January, our on evolving our fitness with

We stories, team we also recently soundscapes partnered our world, from guests company exercises Calming and with members for offer to Calm, continue be Thanks directly meditation wellness a sleep to around their mindfulness access guided incredible to culture. recognized the to TVs. leading in-room

Great Company celebrated our Xth the on we Place by quarter, consecutive Workplace to Hospitality fourth List the the Top Work. as World's Best During year

In strong most year. lodging spot recognition, hospitality of value Hampton and category, also and loyalty. global and for guest its the and in in brands innovation franchising our Magazine's the underscoring they our growth XX took receive owners sector. consecutive recently XXX the recognition, XXth to total, by the to thanks preference, Entrepreneur continue brands the guests drive #X leadership Our receive Franchise across for

proud the and Overall, our record of year. we're very delivered with last growth we performance pleased

Our continues to our powerful network an of for engine of of brands all stakeholders. be opportunity

that are strong model, fee-based performance beyond. well positioned pipeline and Given XXXX confident momentum, our in we driving to we're strong robust and resilient business continue

details turn Now I'll over year. expectations a on the call you little give Kevin the and for to to our more quarter the bit

Kevin Jacobs

Thanks, morning, everyone. Chris, and good

During end was and the the $XXX and was the currency-neutral comparable and Growth RevPAR versus by Group grew fourth quarter, range. occupancy high of in exceeding our quarter, recovery system-wide basis. driven up in a in X% the Business year gains Transient. guidance continued million largely and year-over-year leisure Adjusted EBITDA prior on X.X%

by items. corporate drag. of expectations grew franchise largely Management FX fees an X% ahead performance lower Our our timing driven growth, RevPAR and was despite expense year-over-year, better-than-expected

quarter, per diluted share earnings was $X.XX. the adjusted For for special items

U.S. and Fourth our was X.X% by Leisure comparable strong regional demand Group. and RevPAR Transient performance. to up Business Turning driven improvement across continued

the Americas outside full For trends air the end and the by fourth capacity expect our holidays. quarter X.X% range. year-over-year the year RevPAR XXXX, the driven of In during U.S., leisure strong RevPAR growth U.S. system-wide increased increased region we at to low

growth For the full RevPAR range. we year in XXXX, expect mid-single-digit

in group. X.X% grew quarter, the largely by driven double-digit growth RevPAR Europe, fourth year-over-year In RevPAR in

performance For expect the by to following in region's Qatar Formula including full Dhabi. the X in key year In Baku supported RevPAR COPXX XXXX, RevPAR year-over-year, region, Middle and we in Africa Abu and East mid-single-digit XXXX. events, increased low and races growth X.X% strong

For range. full in expect XXXX, year growth we the RevPAR mid-single-digit

RevPAR X.X%, X% performance. In holiday by RevPAR and China X.X% ex RevPAR quarter continued softer on to the up in China region, outside quarter season. as led Asia in the fourth performance travel was conditions year-over-year. Pacific the declined leisure Asia increased APAC strong Southeast macro and during weigh

new stimulus, However, sequentially year. Week following into an carrying uptick versus driven in positive Golden quarter, by and fiscal third the trends the demand improved momentum

to Pacific low in For expect low we assuming be range, growth to growth Asia the China. in single-digit full year in mid-single-digit XXXX, RevPAR

Turning to development.

X.X% mentioned, located for outside was XXX,XXX than construction. rooms and year grew more year, with pipeline, half the in the units we and U.S. our full net year-over-year which over As nearly half under up with X% the Chris ended

development and robust excited to both markets. we're about products ahead, the year Looking demand the story and for in U.S. Hilton-branded strong our international the

Moving to guidance.

the expect to system-wide growth X.X% year-over-year. X.X% of For RevPAR we quarter, first

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

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

Moving paid of of dividend return. We share a year. total on $XXX $X.XX during in cash per quarter a fourth for to for dividends the the million capital

of Board $X.XX we dividend of In form in and the returned the a $X full quarterly shareholders XXXX, to For billion our buybacks per year first share. cash quarter, authorized dividends.

to our year For found be year, form of full return fourth in dividends. earnings results buybacks the morning. $X.X Further details release the earlier quarter to billion this and approximately in expect full we shareholders the and can on issued

please? question, We would we ask so like prepared that as would our Can We question. questions the This many to have. speak for to limit as to open you like our we possible one have may with first completes any you you remarks. line of yourself

Operator

begin will Instructions]. question-and-answer We the session. now [Operator

today question first with Sean The Kelley of America. Bank comes from

Shaun Kelley

and just wanted to macro you Chris, But and mention a you since just of confident call to spoke we of our bit prepared one with through a cycle said our where major remarks, bit a that a your build start. update, off election we hotel here obviously I went leaders, quarter -- last than little you've more number business ago. that were made sounded last and a in a undoubtedly a U.S. more you

So comment just -- the now? bit. of leaders those to business segments some right expect we on what expand are can the impact? of you some sentiment business possibly What of little And improvement this looking conversations maybe could a Lodging like with that

Christopher Nassetta

outcome sort going I'm to I the assume you're macro. the was translated glad of There but point it in business to huge related group and bunch of around the lot election, being of things regulatory very uncertainty Leisure regulatory, my election. I on that. go most a getting whole people somebody certainly, sense around directly around ends time. of opinion, anybody business asking then tax into ago, would of you And border, me that's and in election care of not uncertainty what uncertainty And happy. a or surprise spending, And noise there immigration, early. lot about, was back mean a what's hadn't that of that's are view this, for. the think, of of would uncertainty gotten a whether a I a view and consumers from Yes, up quarter lot the policy. just that the that we're on you these we ask on amounts if at an obviously, to general with

pull bit the And in reins -- bit. practical their uncertainty means more. the little their of the sort all They're of are more pull they people They bit not sort a a they a uncertainty little around tepid. election, the just capital the those around reins of but husband that little in outcomes --

spending. think, I in broadly

election complete, to or like a of not, even wasn't whether a have me, So and the you else, pretty not there close, the It lot wasn't that dispositive. an we that knew today, are live in it by things disputed. -- it fast or Trust forward ] of noise, We certainly and a And like day I is was day. I noise in is [ cycle a lot while inside going a EO Washington. living in hear everything beltway. on it of

talked that will would there go broader hearing to nameless. others consistent broadly various an going than is in quietly, people bit more better. There get I'll you're there fairly a from why a going a I folks like and I pickup I broad growth business a an on. see person to and is for industries to the there that mean are better. say will an for of more think doesn't think terms is almost That But what I belief, said uptick, that the short think term is that leaders a I'm growth result amongst talking some opportunity in which for mean in think range a belief as a think to I people of think, that I'm really broad and things I I intermediate opportunity, I that that feel other the that there's and opportunity I it economic that economic feel a the appreciate to people in across noise don't be is to bit people our of

policy services, an lighter you, of all in industries. have unclear, we're it going there's financial environment much going it be going community about reconciliation happen election we're to range more of and a that two, you to Two, But get unclear people is to as a the it's morning. think it business this a a debating favorable. while reading board, has of is across regulatory broad mean lot bill, it and the to a take that's sort optimistic certainly about behind I you're tax to Because one, Why? to talking way to how I exactly be trust, happens. done lot in We're One, going of noise, time. when that, be

industries but across again, it are that by folks, that board, of thought it's be folks way, talking and as the the to to I to range to somebody so is across but friends in didn't I about my of of this negative broader set talk running talk And think for a one, doesn't really that as that growth. certainly what's happen, it can't affects broad memory Leisure businesses going is -- mean economic the happening think not business,

So a that's more why I positive. feel bit

the noise, is beginning. of in right, there a particularly Now lot

we're is not think not there's our terms see and of these to in because it's and those of play we upside crazy, going things lot building that reason early, things in happening, all big need the sort out. I So a guidance and how

to to But is general is is be various going it I've underneath the I in you all will noise when around world result. the I that above the some and all a sentiment as for above it think a up you guess, that knock-on economy it the lift economies say, this have life U.S. all, said when -- impact good degree

Operator

comes from Stanley. question Grambling with Morgan The Stephen next

Stephen Grambling

there given seemed returns been the where of development the coming on pretty was you. rates ALIS, interest positive development are outlook, Clearly, sound a skepticism lot yet you has just growing. positive of out that Despite backdrop, your Thank versus like pipeline. around business it demand pipeline

think I apart it just at of love much from cautious set would So to industry you kind more how hear Hilton tone the has that conference?

Christopher Nassetta

panel. I the did long, I there Yes. not but main for was

we so And a owner have reception. big

have we XXX think I owners.

of was short talk So in I people time a I the lot there. to

felt I and frame longer I down probably to differently break it a Stephen, am. I there like I than M&A they're it, maybe. What would with little But sort not it the would say so was And into And my I I of activity more probably about issue you development feeling take first -- appreciate comment, positive. like it, how of sort activity. about versus were bit how of to people again, the new generally on read much M&A not

capital that available have next a come XX, much rates will a I if moved there's XX up very more there's bit, think the down. belief I months, are but over rates think broadly, people

feel is because ticked like up people ask the closer bid has think a the I performance bit. and getting

And so we with the folks for in the panel. asked think the and was a fact And optimism panel me were lot M&A. I the on of more I sense most on answer in

of the terms what still for a more, referencing In lot of that friction describing. which there's reasons the think, you're is, it, new development you're side of probably I

it and and went build. got and capital COVID up rates it went following and interest very expensive up structures availability hard down. to COVID, went During Cost got so

so for awfully optimism. And some that's increasing an difficult I construction. actually sensed new equation

is And question so the why?

want about economy. to I to what's Well, broadly go ourselves, people's with I on more broader optimistic going view, get ahead was, again, think, but don't of the

largest one for stabilization figuring I and going others So on think I improving inflation shelter, measured which see cost a we still labor the is going believe at parts target and, over that the said, up Federal the I of to down, at above and on of XX of XX levels is base. performance, of X%. stabilization to stabilization and component cost an is But by the opportunity some are of the when are as showing as are still cost. this components reality out are rates, is next lag, costs other up. expense build, to shelter as There months closer insurance up come to Government inflation frankly, moderating people largest

you're large see into you numbers, down. as see component set factored to a the very data inflation start inflation So to that going come of

on Obviously, to which the broad contributor another administration is large down, and energy is that costs super has bring energy impact. trying focused

next months believe -- There down. and not an XX going starting people So rates in opportunity come to are to there interest deceleration over XX for is do are rates. I I that I think the believe that to rapid a likelihood is

moving but but a a capital. do of people economic do the that into, to of there that. a happens. of going a driving, and because get looking our of believe availability a with up growth financial that I more want I there's world not happening risk will more activity. that and to least, accelerate which have clearly tick, And the I definition, further ranging wasn't of think bit capital more stable is cyclical It regulatory go to I up least cycle capital. lot in to they're But last world a regulatory then broader get community seeing in thing of I a And going pretty which not is more more the think where belief but kind kind on moving build And I normal that institutions I are And the be that's optimism, at there sort the on is is spectrum gusher, be yields. availability to are that system, is they're as owner going result, is out all again, it to to we're going environment think, was amongst of environment in a It's the their as being to easier sorts think a lending by a shift to seeing is available where what always end think careful.

certainly not to started hear and lot not to that, hearing. going So a we would -- of friction, more a I'm issues positive you're again, I what but movement I I'm say -- place. sense taking I There's say a to

we I'll why but defining? and part last I'll well? You say we stop, say it, sorry, doing are didn't of the How Now it, are it.

brands answer and how all gravity brands of -- new mean for twofold. I a we related One, it's been Sort industry. define generally. we difficult to think And what's performing and environment are the is our construction the in best development the I

as isn't So much while there money.

more there's coming. think I

we more a We just get And share, are conversion with disproportionate available large money of opportunities. new the getting the for disproportionate because brands perform construction. in best we're very that's industry, our amount a financeable the

think I conversion XX we're our not last system. all into of months, are moving the XX% opportunities quite over

I well. X uniquely things been couple continue uniquely I we'll are us, -- the those the so other think And last helping things us And help but to I years. said have helping believe of over as do

Operator

comes question next Carlo The Santarelli with from Bank. Deutsche

Carlo Santarelli

a spoke one that and how and might conversions have kind may 'XX? you And of have a your Then unit might had growth follow-up. have lot in this, quick of as I conversions you I you missed see for of just then you earlier, shaping about And Chris, percentage up said but stuff. development a it it, said 'XX?

Christopher Nassetta

Yes.

acquisitions about in you 'XX, out, prepared plus it I For take include think you It was was. minus. comments, X/X, is or my was everything, and it And about XX%. if partnership if the those

rounding that year, scale, be very Probably I -- meaning incremental partnerships, this 'XX error. some don't in X/X. think will plan I growth view about sort be any would we modest of but mean our I a at existing big there'll our have that

to year. we into to from going up where part? normally we're were which to the elevated of more so And low last be, mid-XXs And was but where mid-XXs, go is the back what sort last we'd the not

Carlo Santarelli

-- you're at of -- comparison. lap looking adjusted Year-over-year you EBITDA guidance, the little year. the that want there like kind quarter XQ guidance have to obviously, versus X% full than there the Was as a part, your midpoint kind growth. look your better say in first obviously, just the to some had of EBITDA abnormalities, of benefits follow-up. kind facing bit to is challenging but The a RevPAR a the were I 'XX Now guidance, second X% were year. -- don't just of at I that X.X% full some looking for you'll one-offs Adjusted

So I for moving the parts first a color want to little of on the some get just bit of quarter.

Kevin Jacobs

driven it, Carlo, a on hit items a onetime comp, quarter. FX you've you couple the it by was then got and tougher that of is Yes, impact and in some first

If you in basically the that, all adjust for line it's algorithm. with

Operator

next The question with from Dove Lizzie Sachs. Goldman comes

Elizabeth Dove

pressures in know on insurance EBITDA initiatives around I that any particularly side. broadly talk was but you're you're a offset a how about about defying yet Can cost talk bit lot guide side, gravity industry, the like seems little you the one, there ALIS cost at it on to side, great and that you thinking week, the too, the it? with last wage have of just ALIS, maybe

Kevin Jacobs

think I you're cost on talking our be about Lizzie, structure, Yes. if to us disciplined. we continue very

XXXX Our inflation. years cost is lower after slightly X of than GAAP for noticed the year, guide even probably you G&A

trying yes, and I cost think there to we for we as well to are operating on and their say, have as the can that benefits, keep can bottom we side, operational some just so to the are owners insurance. the pressures on can best can work we grow -- owners, as wages our -- we'll best they continue many find as doing doing you we with and lines efficiencies have we and

board. the across with helping them operating Just efficiencies

we hearing ownership pressures. year, from missed cost the you to bit just my little actually but on side a guess continue -- I've And ALIS then is disciplined. remain this so for So were us,

Operator

comes question David with Jefferies. next The from Katz

David Katz

the good I a luxury observed required just things. the people that for morning, little segment. It of taking what of strategy obviously, for this bit thinking deployed checks appear the play question. about some hearing that in that my up with that? you going getting the we're is Good that more Thanks up. sort in into the making balancing Obviously, analysis everybody. also traction of does hotels of a are side some to And some luxury around you're year. is are depth traction, how you're but capital that some give us writing capital Can

Kevin Jacobs

I in think I depends the are world. about mean, sure. it Yes, it, where if you you think on

a worth We be from the depending be in you ton in Western of the completely contributions year the and our higher they a partnership, part. tend in traction or at was capital from the came operator are can on last luxury in world, capital It's world, getting that least of contribution Like bunch right? space. which are to on higher light, lower. luxury probably noting SLH In our where that traction zero

the You you end opens are as you of of maybe wide. at with the right? higher out that butter range, X. number we be you where When on get the And top higher there and aperture of full of range pretty our up luxury of in brands And of are the and get or and play more brands mid-market the ends some list. might the competitors, to higher is deals want that -- in you service, about there end X that up hearing the into the in in into depending the are in there particularly luxury, bread the location, the list

the so alive of and supply laws and are well. And demand

a of lot creates it demand key for So money.

we only time do deals our was higher they of you the we at play and all against couple a record do of bit our With tend key Last into our out you of is pushed And time to checks. XX% XXXX. of take those the said, that on I any trajectory. important versus kind of what then about the has are little We light. a track timing thing if or talked I'd a I'll in last they're think deals. at be competitors, say to deals day. of because look anybody's year little there there some where But still from contribute money less bit

that guidance $XXX a seeing million in And for said what at $XXX Day, our million to with little ]. you're is our [ Investor guidance. year So bit the this in we line right

run a money. right I think basis. to CapEx, the key about on rate where that's all it way And including that's think

Operator

The next Farley comes from UBS. question with Robin

Robin Farley

Great.

moving than 'XX talk EBITDA and great as bit that it midpoint plus seems obviously, about you getting want did result growth RevPAR And growth. fee for down quarter of and and your ago. growth often being the to and So the 'XX move a growth of little higher the than guidance the ask the kind units RevPAR rate RevPAR lower algorithm, about of algorithm QX I is a you P&L. better to unit sort like growth

of to like Just it wondering what sort management a based -- were may on tied and it's if there in other looked wondering down bit. be going QX, fees on

is is so moves of the the there magnified sort P&L? that XXXX there that kind bringing top down getting growth it -- line as not into that's of And continuing something

Kevin Jacobs

Yes, a part question. straightforward a the Robin, bit answer. it's I'll it's because little more first second take good

other actually baked those and all FX, guidance. it's for in base If that adjust you was and and been high in items for beat gave into fees that and we you the guidance numbers we the single some digits, onetime QX our

came actually better bit So thought. little than in we it a

suggest of if you adjust our for actually midpoint. as there for it's other where year Carlo's items this for same QX than we're you in the above the last midpoint algorithm same timing the earlier So 'XX, full X%. for some the some onetime year X.X%, FX, of and there's guidance nothing it's at and question some is answer year the adjust -- at going algorithm yes, would on the FX. And Again, then

Robin Farley

one Are any time... there

Christopher Nassetta

a ago bottom back and and are go for Investor laid FX have look if we numbers higher that, of with we what line if And out, at out would go even Day, the FX. laid it is look sort what at XXXX importantly, year even you really than back the EBITDA you

the onetime I disciplined But to we're you on algorithm. plan. that's line. is the FX. we super what above higher in also structure. we FX mean, everybody out, If take were like presented with but it's there going super it's on, bottom disciplined, line are top because, still, on EBITDA our X-year again, things And than disciplined really even our We're FX, cost even

last finished points business you prior year this XXXX. margins with peak EBITDA think if versus so over than we And the that -- about are 'XX, X,XXX higher and of basis

the that's think have running good in testament that this we I a So to pretty discipline business.

Robin Farley

color. That's helpful super

of you'd terms thinking big the just quarterly can we that just call think we're sort Just onetime of out items, of cadence, call any you'd those in about ones out. so the when anything about

Christopher Nassetta

of and No, sorts of sorts all in in X the are get it's normal just sort year, that lumpy all weighted -- they things sometimes a fees, their happen there are 'XX, term -- they those case, of versus the quarter them other. were in you XXXX quarter go fourth first And of quarter weighted XXXX. away. the through get or the in of this some of that, Once in

saw all away. away you I the mean depending given washes on where our obviously, And washes it for FX, dollar have the that goes. But full you still year. for the guidance year, full

Operator

next with comes Brandt The question Montour from Barclays.

Brandt Montour

Maybe Kevin. just following on question, that

Obviously, with maybe is some sense it's full buybacks be is of algo, again, was little rest When it And you the at in below if guide, but the line bottom X-year But year I'm provide not sure bridge makes are look, versus, that. we there, Day, right the of like just the could Investor would it but and could the P&L. the in algo. there guide, guide helpful. RevPAR, If the in look you your lower. EPS EPS extra EBITDA a color looks end still the

Kevin Jacobs

factory mean, your I for. -- was look, factored for mentioned that Brandt. Sure, that's that but is the big driver and see all Yes. you all buybacks, I

to just one little did year, at higher buyback to bit relever our just we've year, we $X a releveraging, it's fund past other We fund right? than balance This and been about The next got before. another rates -- financing the had is borrowing similar program. amount to of help sheet billion

And so for adjusted all through you're the just flow EPS in mid-teens And seeing that, other that be catch we'd up EPS. terms in you adjusted growth. that, if of than to

Christopher Nassetta

a levels relevering, certain any but Yes. leverage than year-over-year, And impact, it while itself. stabilized you're an term, meaning it impact, at longer has once doesn't it have you've fixes

Operator

comes Citi. Next Rose with question Smedes from

Bennett Rose

about the properties Thank upper about But just your maybe across the when versus luxury you, -- U.S. upscale think moment really full-service you. about a just to you I wanted just just or system. RevPAR for the you thinking select your ask the and expectations you weakness -- would expectations service select on expect to segment? weighing for how that of service, your just you unfold any and there or more maybe what's what continue think see supporting commentary the could you relative side to of year kind talked or

Kevin Jacobs

No.

think, you Are to -- performance? scale might QX Smedes, relative I you chain talking I talking think you're QX. about about

Bennett Rose

I I think well. the industry... Well, and most the for as of mean year

Kevin Jacobs

right? think comps, year-over-year any I really we call It's wouldn't -- underperformance. just So out

line we than share, performance We're We scale continue. full better continue in year to and to for or be that gaining the expect 'XX. chain

Operator

next Securities. with Patrick The Scholes Truist comes question from

Charles Scholes

time any and like believe are from One XX% thing from What last -- tariffs on to that is the franchisees impact be around developers but your speak about I hearing at thoughts what specifically them moment, moment I've the a blinked, tariff hear potential I change your or only heard and... builders. the and and you in potentially China, I'd could is the might you potential

Christopher Nassetta

it. talk to about Happy

you out, As your a and it's is and of in sort pointed then around question moving tariffs not, that they're the lot. embedded

to of obviously, delicate negotiation far, is what's are speak to It I that we've deals impact of happens. do that I the the of trade any part what series in of. out tariffs people, real kinds playing of to right strategy negotiations part talked lot believe and not believe are depends the of a end. of getting So a and

done my involve up of not will So won't mean trade most some end in major be deal that tariffs. tariffs. But will there cases, that that a form where get guess in we is doesn't place we

lift I noise, that again, to the of like like steady above up of me And so know you wheel. know whole hand all this sort the on I

believe lift I'll going negotiations I the better with back in it it tariffs, not broader even risk chain of the worse come supply that's even have economic noise tariffs. think when the second various I all, of was short-term and still that be, thought to we that to a -- you above than growth opportunity we we is and with all broadly short-term imposition tariffs of

say about things happens, X to think way our impact, very it get what no what we've but we depends of so we've couldn't impact COVID, diversified supply aggressive like that not have the on in done in and last happened frankly, a chains mean years. over I One far, the couldn't that things.

get So part on of have world it of was COVID. products. coming where continued just it's of driven to various then because the really necessity we good by we out idea diversification places But a in think various can we the

So that the it risk from that's for getting with like one that we're in had not tariffs ripple because that in you place location, particular carry a call the problem whole system effect. create world if would could a

never So would HSM But I diversifying say supply I done say, it impact. done no job have -- our team again, -- have of would our a has we chain. can't terrific

And the pretty other We of so going in we that areas the the to feel question supply at on world. good. in least so far feel parts our pivot pretty ways in have we good given and -- relationships what's are chain that

Operator

from Michael Bellisario comes question next The Baird. with

Michael Bellisario

and on you color Just might read-through might falling be how can out be those there? what there's wonder give Any commentary what and if the deletions any would of also the trending be pipeline? on

Kevin Jacobs

for point the are good sort question. that 'XX is little it's of talked before, bit of our expectation X rate. X.XX long-term as of than generally to consistent averages. everything But more It's year did do mean a We choice. XXXX about run remove baked a every we've with for I our answer that's Most those typical We than into same year. the last system Michael.

Operator

Beynon next The with comes Macquarie. Chad question from

Chad Beynon

certainty ask that large and now on if that And more, have corporations more sequentially we of kind certainty Wondering you big your policy that work of Beltway, on that when swing see some couple kind be a Group. Just for inside acceleration. positive about wanted we traveling of to could forward? around next through go impact months the factor comment more the BT started and as to the

Christopher Nassetta

It certainly could be.

not We forecasted and then post-election have we by midweek we guidance saw particularly an are I -- given that. throughout not would say uptick fourth the or strength. quarter you demonstrated

people's Now certainty that spending described I I belief that on more. all earlier, think things tax, just more the based more on comfort, was environment. regulatory on It's

fourth part think that was compressed the way of in a fourth in I gave that of the quarter. holidays benefit travel fell, it the quarter days, terms us the and it

mean, to whether with of election, the because of of special I think all I I a people business sort But net-net, to, Head back happening it normal of businesses of uniformly, happened every serious a our getting I in probably as said, but in did, part bit back Sales CEO met across more I think talking I'm accounts. it usual. our office it sort little anyway to which their cycle was just getting of as running and and people about corporate

understand If medium, to you that small, that because to okay? more, broadly people to are they exception, that they're in. for all And living saying you they're pay travel large, going their if they travel going talk talk more to accounts, understand almost the broadly without they're environment

our shot well rate structures but of prior that back higher. sort prior We're recovery obviously, to beat are back do transient bodes think so to for business continue of to way And demand levels I of not that. comments, to my good just the end over. introductory Leisure already pretty year, to the by and with And a Group certainly think there's in I do able same as commented Leisure's way being I of on

be effect you'll focused of demand rated prior I think ultimately recover go should a then happening. will lower think and leisure, manage which out levels to of sort Transient of on Business leisure. segments, that's in your way I as trying super in and see taking some core What to want where beyond certainly be lower-priced some We be you'll demand, as So the of is to want want I but inventory peaks see would as we're the substitution you leisure, to segments, sort the that you're between sort will high-rated good. which lower-rated keep see

are indicative of year. way happening it's although then So it's accelerated The the a thing, trends saying was it the a early in of world. in long-winded sort of fourth same the quarter so post-election in far

-- January bit a where I a and out burner, change just they're the mean suspect away falling a holidays a wasn't of but it -- the had in but you people barn back just fine I travel. midweek our on was -- step will expectations, road, with get not fully see in line we aren't You're small

Operator

Bernstein. question Clarke The Please ahead. go with from Richard comes next

Richard Clarke

distribution development those talking be or as to I do happy ask agents? cetera. et through Obviously, bad to AI. handle online And you travel an of your agents? the news Agentic the good that the Are you Tripadvisor been OTA dawn for , overall, the just those those want partners Hilton? AI for booking, to see into Would you have agencies about agents first maybe

Christopher Nassetta

want. small they percentage serve The experience better is of through we to deal Yes. customer access can I through we can. want the there. mean have of OTAs. relationships that have better as a comes as the a directly with It's obviously I we for good we do business that The them always business, customers what our relatively we mean that everybody. we percentage better our

done they for -- how work of it think stay, how obviously, of package about relationship think in day their to system pre-arrival, putting huge relationships. that every And every post-arrival, great. it, great we're a experience, element do amount large to We our so is continue. the with But we time -- go they a that's we detail of booking would they of our on customers of have exploration the dream about we to and into very to together to because want, it. take without whole the We've element from trip, direct a that our the through to, driven where want majority getting to first

pleasant customers. journey we AI that and friction and step to more including pre-experience every use and tools We make are for in of engaged how technology our a it super

all great of we to a plan to work think, understand with both no, but answer. experience, point analytics ahead the honestly, view to I stay from -- that customers And terms doing board, of experience granular and it. across customize the the but particularly detail, mass individual and want stay, then of don't over able in is being data to use so we're short stay. what We're AI the we're on particularly in And outsource doing the

interesting We things there. have and things some on really game-changing really, going

so And of pursuing are to the continuing committed -- direct relationships pursuit our our fully with customers. we

Richard Clarke

that on on agent just make to I that. a follow-up a ask would customer. an booking behalf Chris. therefore, to navigate not a Gemini Did AI and the to or agent of allow conclude, you open Thanks Maybe Hilton

would they AI? saying You're to direct have to through that agent not an come do

Christopher Nassetta

of number said, may we directly players. a those just I with work

So we will players. is to work directly with of What with them. we we're work indirectly those some saying want don't

Operator

The Dan comes next question with from Politzer Wells Fargo.

Daniel Politzer

on I just bit. back circle want a Leisure to

to occupancy out lower a the that You in international? was anything just clarification sounds anything in it be the call and that like December. then trends, for was occupancy. terms we strong it it guys -- in one called first mostly of out should particularly U.S.? of? aware break, And the on quarter, also, or Was spring rate, you Easter, bit rate given that Was higher touch calendar then can maybe And

Christopher Nassetta

Yes.

much fell. was I fourth it everywhere the lot it to in with how holidays headed pretty think do the Leisure had in quarter, a and

all others, rate than volume-wise wasn't that rated, Leisure. more rated, it regions been a but the stimulated stipulated holidays By would have low lot of some a the travel. in impacts way, fell low that but Now way across It board. of was the more it structures

that a strike of and quarter a that first was impact of a in but QX impact There year lot any QX. what -- biggest tell lot net and And and we then there go sadly, positive Easter have enough going from in Easter was is that. every the obviously, doesn't to QX. the question? net all on that snow on year. is a there's I for be will that storms fires things noise moving yet the Best can Holiday, for last mean, with what of and you Otherwise, part real it of there's negative, Easter obviously, of moving QX first us is quarter, the the second

Kevin Jacobs

being in That's guidance X.X of point the QX. ahead driver primary

Operator

Melius next Research. Cunningham The comes with from question Conor

Conor Cunningham

on comment positive So China today.

that single-digit you would you 'XX number imagine are curious of that could a that kind differences bit. little I'm unpack first stark. versus for talked pretty within about So the just low half half if second in I that

little general? on region So touch if signings bridge you bit? what's bit maybe on just that and And and then development the a going just could a in in

Kevin Jacobs

Yes, sure.

of up China, for year. -- it It year it's year. the down X-ish over the For of consistent sort the pretty pretty last course ended was

in quarter think the in had I remarks. as fourth down prepared I X my it what was

but spread this it's I think digits. at For consistent don't quarterly year, board the exactly single of pretty low the front in I have across me,

we approvals And across In both in up really then well board chain of our continue demand development, in are the and in and openings our great. up starts started terms for we're XX% scales doing and to China we're nearly XX%, the product. XXXX,

affecting a And Buildings Master particularly Hilton hotels, Limited Partnerships So a isn't hotels, that shell use and as now the being slowdown in our got to for different buildings bit adaptive need a and good and Residential Inn lodging is you're beneficiary from developers seeing overall developed in Garden in reuse of China. in real mid-market the shell much. our estate fact, of a lodging find both are office some --

in but fundamental doing to GDP easier is, feel course, we this we're really side, that little So what better is doing then and side. going pretty do be a single-digit the development and good of comps bit on low RevPAR growth, China year? we on great No, definitely of the know on growth about

Christopher Nassetta

are crazy. other add Chinese China thing like traveling I'd in only is The

which Visa is up has So there's China zones. zones, free a opened whole outbound Visa free story, Asia, inter

still And beneficial as for travel China, our business. tepid, just demand expect broader to out of we so be but while Kevin sort the super growth, coming APAC you it's when of positive suggested, aggregate all to China

we of has diminishing it get ours Japan, But global company as huge news outbound travel pick too. the up going big obviously within lot are huge. outside to to effect But the a side, a like beneficiaries they're a diversified So Southeast what's Asia, good other degree, about that on like the of China. Australasia China. they of of on

Operator

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

Christopher Nassetta

bit joining with interesting us. we obviously, optimistic as overall. you context prepared appreciate optimistic in the we -- of always commentary. everybody, world, how as little again, about 'XX 'XX addition Thanks Great for we gave XXXX. to time. finished And super I'm our and a Hopefully, but very out It's go an questions. we're, you We happy heard, into

So finish we'll after look first forward to catching up with you we the quarter.

Thanks again. Have great day. a

Operator

concluded. you The conference has attending today's now for Thank presentation.

disconnect. now may You

Hilton Worldwide (HLT) 6 Feb 252024 Q4 Earnings call transcript