Hilton's franchise model, akin to McDonald's, allows for profitable growth without heavy capital expenditures, making it a strong long-term investment in the hotel sector. The shift to franchising has significantly improved Hilton's margins, with gross margins rising from 45% to 75% and operating margins from 20% to 45%. Hilton's capital-light model reduces Capex needs, enhancing resilience and reducing cyclicality, although the high debt for share buybacks is a concern.
Hilton is aiming to quadruple its presence in Saudi Arabia and will launch a premium economy brand in the kingdom as the country hopes to attract tourists and diversify its economy. Guy Hutchinson, Hilton's Middle East president, joins CNBC's Access Middle East.
Hilton Worldwide Holdings, Inc. (NYSE:HLT ) Q1 2025 Earnings Conference Call April 29, 2025 9:00 AM ET Company Participants Jill Chapman - SVP, Head, Development Operations & IR Christopher Nassetta - President, CEO & Director Kevin Jacobs - CFO & President, Global Development Conference Call Participants Carlo Santarelli - Deutsche Bank Shaun Kelley - Bank of America Merrill Lynch Stephen Grambling - Morgan Stanley David Katz - Jefferies Smedes Rose - Citi Robin Farley - UBS Brandt Montour - Barclays Lizzie Dove - Goldman Sachs Chad Beynon - Macquarie Patrick Scholes - Truist Michael Bellisario - Baird Meredith Jensen - HSBC Operator Good morning, and welcome to the Hilton First Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded.
HLT's first-quarter 2025 comparable RevPAR grows year over year, owing to an increase in occupancy and ADR.
While the top- and bottom-line numbers for Hilton Worldwide (HLT) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Hilton Worldwide Holdings Inc. (HLT) came out with quarterly earnings of $1.72 per share, beating the Zacks Consensus Estimate of $1.61 per share. This compares to earnings of $1.53 per share a year ago.
Hilton Worldwide Holdings posted first-quarter net income growth and boosted its projection for adjusted 2025 earnings as the hotelier shrugged off what it called weaker macroeconomic conditions.
HLT's Q1 2025 performance is likely to have benefited from robust leisure travel trends, an expanding property footprint and brand partnerships.
Besides Wall Street's top -and-bottom-line estimates for Hilton Worldwide (HLT), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
Hilton Worldwide (HLT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Hilton Worldwide (HLT) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Hilton Worldwide Holdings Inc. HLT is trading at a premium to the Zacks Hotels and Motels industry, with a forward 12-month price-to-earnings (P/E) ratio of 27.60X compared with the industry's 21.65X. The stock is also valued higher than the S&P 500 index at 20.52X and the broader Consumer Discretionary sector at 17.62X.