Hilton Worldwide Holdings Inc. reported systemwide comparable RevPAR increased 3.5% and 2.7% for the fourth quarter and full year of 2024, respectively, compared to the same periods in 2023, exceeding the high end of guidance. Net income was $505 million for the fourth quarter and $1.539 billion for the full year, also exceeding the high end of guidance.
“We are pleased to report a strong fourth quarter, with both top and bottom line results exceeding our expectations,” said Christopher J. Nassetta, president/CEO, Hilton. “All segments drove RevPAR outperformance, with strong trends in leisure occupancy, as well as continued growth in business transient and group results, and we expect favorable trends to continue into 2025. We also delivered the highest number of approvals, construction starts and openings in our history in 2024, helping us achieve net unit growth of 7.3%. With a development pipeline of nearly half a million rooms, we are confident that we are well positioned to deliver net unit growth between 6% and 7% in 2025.”
Other highlights include:
- Adjusted EBITDA was $858 million for the fourth quarter and $3.429 billion for the full year, exceeding the high end of guidance
- Approved 34,200 new rooms for development during the fourth quarter, bringing the development pipeline to 498,600 rooms as of Dec. 31, 2024, representing growth of 8% from Dec. 31, 2023
- Added 22,600 rooms to the system in the fourth quarter, resulting in 98,400 room openings for the full year, contributing to net unit growth of 7.3% from Dec. 31, 2023
- Diluted EPS was $2.06 for the fourth quarter and $6.14 for the full year, exceeding the high end of guidance
- Diluted EPS, adjusted for special items, was $1.76 for the fourth quarter and $7.12 for the full year, exceeding the high end of guidance
- Repurchased 3.1 million shares of Hilton common stock during the fourth quarter; bringing total capital return, including dividends, to $781 million for the quarter and $3.0 billion for the full year
- Full-year 2025 systemwide RevPAR is projected to increase between 2% and 3% on a comparable and currency-neutral basis compared to 2024; full-year net income is projected to be between $1.829 billion and $1.858 billion; full-year Adjusted EBITDA is projected to be between $3.700 billion and $3.740 billion
- Full-year 2025 capital return is projected to be approximately $3.3 billion
- Net unit growth for 2025 is expected to be between 6% and 7%
Overview
For the three months ended Dec. 31, 2024, systemwide comparable RevPAR increased 3.5% compared to the same period in 2023 due to increases in both occupancy and ADR. Management and franchise fee revenues increased 4.8% compared to the same period in 2023.
For the year ended Dec. 31, 2024, systemwide comparable RevPAR increased 2.7% compared to the same period in 2023 due to increases in both occupancy and ADR. Management and franchise fee revenues increased 9.1% compared to the same period in 2023.
For the three months ended Dec. 31, 2024, diluted EPS was $2.06 and diluted EPS, adjusted for special items, was $1.76, compared to $0.57 and $1.68, respectively, for the three months ended Dec. 31, 2023. Net income and Adjusted EBITDA were $505 million and $858 million, respectively, for the three months ended December 31, 2024, compared to $150 million and $803 million, respectively, for the three months ended December 31, 2023.
For the year ended December 31, 2024, diluted EPS was $6.14 and diluted EPS, adjusted for special items, was $7.12, compared to $4.33 and $6.21, respectively, for the year ended December 31, 2023. Net income and Adjusted EBITDA were $1.539 million and $3.429 million, respectively, for the year ended Dec, 31, 2024, compared to $1.151 million and $3.089 million, respectively, for the year ended Dec. 31, 2023.
Development
In the fourth quarter of 2024, Hilton opened 171 hotels, totaling 22,600 rooms, resulting in 17,200 net room additions. During the quarter, the company continued to expand its portfolio in the Asia-Pacific market, surpassing 1,000 hotels in the region. It opened its first hotels in Bonaire and Paraguay and now have properties in 140 countries and territories. Hilton also added several luxury hotels to our pipeline in the Middle East and Africa region during the quarter. With more than 500 luxury hotels worldwide, the company looks to expand its portfolio in 2025 with the reopening of the Waldorf Astoria New York, along with the openings of Waldorf Astoria Costa Rica Punta Cacique, Waldorf Astoria Shanghai Qiantan, Waldorf Astoria Osaka, Waldorf Astoria Morocco Rabat Sale, Conrad Hamburg and Conrad Athens.
The company added 34,200 rooms to the development pipeline during the fourth quarter, and, as of Dec. 31, 2024, the development pipeline totaled 3,578 hotels representing 498,600 rooms throughout 118 countries and territories, including 25 countries and territories where the company had no existing hotels. Additionally, of the rooms in the development pipeline, nearly half were under construction and more than half were located outside of the U.S.
