Hilton Achieves $1.54B Net Income in 2024 with Continued Growth
HILTON WORLDWIDE HOLDINGS reported net income of $505 million for the fourth quarter of 2024 and $1.54 billion for the full year. The company’s systemwide comparable RevPAR increased 3.5 percent in the fourth quarter, driven by higher occupancy and ADR.
It added 22,600 rooms in the fourth quarter, contributing to 98,400 room openings for the year and resulting in 7.3 percent net unit growth from the prior year-end, Hilton said in a statement.
“We are pleased to report a strong fourth quarter, with both top- and bottom-line results exceeding our expectations,” said Christopher J. Nassetta, Hilton’s president and CEO. “All segments drove RevPAR outperformance, with strong trends in leisure occupancy and continued growth in business transient and group results. 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 7.3 percent net unit growth. With a development pipeline of nearly half a million rooms, we are confident in delivering 6 to 7 percent net unit growth in 2025.”
Hilton approved 34,200 new rooms for development in the fourth quarter, bringing its total pipeline to 498,600 rooms as of Dec. 31, an 8 percent year-over-year increase. Meanwhile, the company’s systemwide comparable RevPAR rose 1.4 percent in the third quarter on a currency-neutral basis, with net income of $344 million.
Key highlights:
- Adjusted EBITDA: $858 million for the fourth quarter, $3.429 billion for the full year.
- Diluted EPS: $2.06 for the fourth quarter, $6.14 for the full year.
- Adjusted diluted EPS: $1.76 for the fourth quarter, $7.12 for the full year.
- Repurchased 3.1 million shares in the fourth quarter, bringing total capital return, including dividends, to $781 million for the quarter and $3 billion for the full year.
- Full-year 2025 projections:
- Systemwide comparable RevPAR growth of 2 percent to 3 percent on a currency-neutral basis.
- Net income between $1.829 billion and $1.858 billion.
- Adjusted EBITDA between $3.7 billion and $3.74 billion.
- Capital return of approximately $3.3 billion.
- Net unit growth of 6 percent to 7 percent.
Financial results
Systemwide comparable RevPAR rose 3.5 percent for the fourth quarter of 2024, driven by higher occupancy and ADR. Management and franchise fee revenues increased 4.8 percent year over year.
For the full year, systemwide comparable RevPAR rose 2.7 percent, with management and franchise fee revenues up 9.1 percent year over year, Hilton said.
The company exceeded its high-end guidance in several key metrics. Diluted EPS was $2.06 for the fourth quarter and $6.14 for the year. Net income reached $505 million for the fourth quarter and $1.54 billion for the full year. Adjusted EBITDA totaled $858 million for the fourth quarter and $3.43 billion for the year.
It repurchased 3.1 million shares in the fourth quarter, with total capital return, including dividends, reaching $781 million for the quarter and $3 billion for the year, the statement said.
As of Dec. 31, Hilton had $11.2 billion in outstanding debt, excluding deductions for deferred financing costs and discounts, with a weighted average interest rate of 4.77 percent.
Development pipeline
Hilton opened 171 hotels with 22,600 rooms in the fourth quarter of 2024, adding 17,200 net rooms, the statement said. With more than 500 luxury hotels worldwide, Hilton plans to expand in 2025 with the reopening of Waldorf Astoria New York and new openings in Costa Rica, Shanghai, Osaka, Rabat, Hamburg and Athens.
The company added 34,200 rooms to its pipeline in the fourth quarter, bringing the total to 3,578 hotels with 498,600 rooms across 118 countries and territories, including 25 without existing properties. Nearly half of the pipeline rooms were under construction, with more than half outside the U.S.
It surpassed 1,000 hotels in the Asia-Pacific region and entered Bonaire and Paraguay, expanding its presence to 140 countries and territories. The company also grew its luxury pipeline in the Middle East and Africa.
2025 outlook
Hilton projects systemwide comparable RevPAR to increase between 2 percent and 3 percent for full-year 2025 on a currency-neutral basis, the statement said. Diluted EPS is expected to range from $7.45 to $7.56, while adjusted diluted EPS is projected between $7.71 and $7.82. Net income is forecast between $1.829 billion and $1.858 billion, with adjusted EBITDA anticipated between $3.7 billion and $3.74 billion.
The company expects contract acquisition costs and capital expenditures, excluding third-party reimbursements, to range from $250 million to $300 million. Capital return is projected at approximately $3.3 billion, with general and administrative expenses between $420 million and $430 million. Net unit growth is expected to be between 6 percent and 7 percent.
Hilton expects systemwide comparable RevPAR to increase between 2.5 percent and 3.5 percent year over year for the first quarter of 2025 on a currency-neutral basis. Diluted EPS is projected between $1.52 and $1.58, while adjusted diluted EPS is expected between $1.57 and $1.63. Net income is forecast between $373 million and $388 million, with adjusted EBITDA ranging from $770 million to $790 million.
Hilton and American Express provided 20,000 free room nights for those affected by the Los Angeles wildfires. Hilton also worked with 211 LA to house displaced individuals seeking aid.
