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.
Lodging Industry | Consumer Cyclical Sector | Mr. Christopher J. Nassetta CEO | NYSE Exchange | US43300A2033 ISIN |
United States Country | 178,000 Employees | - Last Dividend | 4 Jan 2017 Last Split | 12 Dec 2013 IPO Date |
Hilton Worldwide Holdings Inc. is a renowned hospitality company with a comprehensive presence in the management, franchising, ownership, and leasing of hotels and resorts globally. Founded in 1919, the company asserts its dominance in the hospitality industry through a segmental operation that includes Management and Franchise, and Ownership. With its global operations split across North America, South America, Central America (including the Caribbean), Europe, the Middle East, Africa, and the Asia Pacific, Hilton has established a widespread network that caters to a diverse clientele. Its headquarters are strategically located in McLean, Virginia, solidifying its pivotal role in shaping the hospitality landscape worldwide.
Hilton's portfolio boasts an array of distinguished brands catering to various market segments, from luxury and lifestyle to full-service, focused-service, all-suite, and economy hotels. Each brand under the Hilton canopy is designed to offer distinct experiences tailored to the unique needs and preferences of its guests.