NEW YORK - Hilton Worldwide Holdings Inc. (NYSE:HLT) reported fourth-quarter earnings that exceeded analyst expectations, but provided a softer-than-anticipated outlook for 2025, potentially tempering investor enthusiasm.
The hotel chain posted adjusted earnings per share of $1.76 for Q4, surpassing the analyst consensus of $1.67. Revenue for the quarter came in at $2.78 billion, slightly above the estimated $2.77 billion. System-wide comparable RevPAR increased 3.5% YoY on a currency neutral basis.
Despite the strong Q4 performance, Hilton’s guidance for 2025 fell short of analyst projections. The company expects full-year 2025 adjusted EPS to be between $7.71 and $7.82, below the consensus estimate of $8.01. For the first quarter of 2025, Hilton forecasts adjusted EPS of $1.57 to $1.63, also below the $1.65 analyst expectation.
Christopher J. Nassetta, President & CEO of Hilton, commented on the results: "We are pleased to report a strong fourth quarter, with both top and bottom line results exceeding our expectations. 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."
Hilton’s development pipeline remained robust, with 498,600 rooms as of December 31, 2024, representing 8% growth from the previous year. The company added 22,600 rooms to its system in Q4, contributing to a net unit growth of 7.3% for the full year.
For 2025, Hilton projects system-wide RevPAR to increase between 2.0% and 3.0% on a comparable and currency neutral basis. The company expects net unit growth for 2025 to be between 6.0% and 7.0%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.