Investor Contact 7930 Jones Branch Drive
Investor Contact 7930 Jones Branch Drive Charlie Ruehr McLean, VA 22102 +1 703 883 1000 ir.hilton.com Media Contact Kent Landers +1 703 883 3246
MCLEAN, VA (October 27, 2026) - Hilton Worldwide Holdings Inc. ("Hilton," "the Company," "we," "us" or "our") (NYSE: HLT) today reported its third quarter 2026 results. Highlights include:
Diluted EPS was $2.37 for the third quarter, and diluted EPS, adjusted for special items, was $2.45
System-wide comparable RevPAR increased 5.8 percent, on a currency neutral basis, for the third quarter compared to the same period in 2025
Approved 30,500 new rooms for development during the third quarter, bringing our development pipeline to 543,100 rooms as of September 30, 2026, representing growth of 5 percent from September 30, 2025
Added 27,000 rooms to our system, resulting in 23,000 net additional rooms for the third quarter, up 6.5 percent sequentially from the second quarter, contributing to net unit growth of 6.0 percent from September 30, 2025
Announced the appointment of Jeff Moore as Executive Vice President and Chief Technology Officer. Jeff will harness his deep experience developing consumer- facing technologies and Hilton’s already-industry-leading technology platform to strengthen the Company's commitment to lead the industry in technology innovation
On October 20, announced that Hilton will transfer its stock listing to Nasdaq under its existing ticker, "HLT," effective November 5, 2026. The move aligns with the Company's innovation and growth ambitions, and no action is required by shareholders
Repurchased 2.6 million shares of Hilton common stock during the third quarter, bringing total capital return, including dividends, to $879 million for the quarter and $2,902 million year to date through October
Full year 2026 system-wide RevPAR is projected to increase between 4.0 percent and 4.5 percent on a comparable and currency neutral basis compared to 2025; full year net income is projected to be between $1,909 million and $1,923 million; full year Adjusted EBITDA is projected to be between $4,060 million and $4,080 million
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We delivered strong top and bottom-line results for the third quarter that exceeded our expectations. Our results were driven by momentum across our system, which we expect to continue for the remainder of the year and into 2027. We achieved our highest quarter ever for organic openings, and the continued quarterly sequential increases give us confidence in delivering net unit growth around the midpoint of our 6.0% to 7.0% full-year guidance range.”
For the three months ended September 30, 2026, system-wide comparable RevPAR increased 5.8 percent compared to the same period in 2025 due to an increase in both occupancy and ADR. Management and franchise fee revenues increased 9.5 percent compared to the same period in 2025.
For the nine months ended September 30, 2026, system-wide comparable RevPAR increased 4.7 percent compared to the same period in 2025 due to an increase in both occupancy and ADR. Management and franchise fee revenues increased 8.7 percent compared to the same period in 2025.
For the three months ended September 30, 2026, diluted EPS was $2.37 and diluted EPS, adjusted for special items, was $2.45, compared to $1.78 and $2.11, respectively, for the three months ended September 30, 2025. Net income and Adjusted EBITDA were $536 million and $1,058 million, respectively, for the three months ended September 30, 2026, compared to $421 million and $976 million, respectively, for the three months ended September 30, 2025.
For the nine months ended September 30, 2026, diluted EPS was $6.13 and diluted EPS, adjusted for special items, was $6.75, compared to $4.84 and $6.03, respectively, for the nine months ended September 30, 2025. Net income and Adjusted EBITDA were $1,401 million and $3,013 million, respectively for the nine months ended September 30, 2026, compared to $1,163 million and $2,779 million, respectively, for the nine months ended September 30, 2025.
In the third quarter of 2026, we opened 182 hotels, totaling 27,000 rooms, resulting in 23,000 net room additions. Notable openings included the Hale Hokuala Kauai, Curio Collection by Hilton, which marked the debut of the lifestyle brand in Hawaii, and the Den Bengaluru, LXR Hotels & Resorts, marking the luxury brand’s debut in India. Additionally, we opened the DoubleTree by Hilton Singapore Robertson Quay, the Canopy by Hilton Bangkok Sukhumvit and the Spark by Hilton Milan Linate Airport, which marked the brands' debuts in Singapore, Thailand and Italy, respectively. We also opened our first hotels under Select by Hilton during the quarter, following its launch earlier this year. The opening of the Hilton Istanbul Airport marked the 100th hotel in Türkiye, and we expect to continue to see expansion in the Middle East & Africa region, with more than 20 signings during the quarter. We also continued to expand our global luxury development pipeline with new signings across Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts and LXR Hotels & Resorts, including Waldorf Astoria Seychelles Mahe, Conrad Bengaluru Airport and Iona Galapagos, LXR Hotels & Resorts.
We added 30,500 rooms to the development pipeline during the third quarter, and, as of September 30, 2026, our development pipeline totaled 3,869 hotels representing 543,100 rooms throughout 135 countries and territories, including 26 countries and territories where we 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.
As of September 30, 2026, we had $13.5 billion of debt outstanding, excluding the deduction for unamortized deferred financing costs and discount, with a weighted average interest rate of 5.09 percent. Excluding all finance lease liabilities, we had $13.1 billion of debt outstanding with a weighted average interest rate of 5.10 percent and no material indebtedness that matures until April 2029, other than $600 million of outstanding Senior Notes due April 2027. We believe that we have sufficient sources of liquidity and access to debt financing to address the Senior Notes due April 2027 at or prior to their maturity date as well as all indebtedness that becomes due thereafter.
As of September 30, 2026, no borrowings were outstanding under our senior secured revolving credit facility, which had an available borrowing capacity of $1,894 million after considering $106 million of letters of credit outstanding. Total cash and cash equivalents were $830 million as of September 30, 2026, including $56 million of restricted cash and cash equivalents.
In September 2026, we paid a quarterly cash dividend of $0.15 per share of common stock, for a total payment of $34 million, bringing total dividend payments for the year to $103 million. In October 2026, our board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on December 29, 2026 to holders of record of our common stock as of the close of business on December 1, 2026.
During the three months ended September 30, 2026, we repurchased 2.6 million shares of Hilton common stock at an average price per share of $320.05, for a total of $845 million. During the nine months ended September 30, 2026 we repurchased 8.2 million shares of Hilton common stock at an average price per share of $316.36, returning $2,705 million of capital to shareholders, including dividends. Total capital return to shareholders, including dividends year-to- date through October, was $2,902 million. 2 The number of shares outstanding as of October 22, 2026 was 222.5 million.
Share-based metrics in Hilton's outlook include actual share repurchases through the third quarter but do not include the effects of potential share repurchases thereafter.
• System-wide comparable RevPAR, on a currency neutral basis, is projected to increase between 4.0 percent and 4.5 percent compared to 2025.
◦ Third quarter benefited from the World Cup and favorable calendar and holiday shifts; the fourth quarter is expected to be affected by midterm elections and increased impact from the Middle East.
• Diluted EPS, adjusted for special items, is projected to be between $9.07 and $9.13.
• Adjusted EBITDA is projected to be between $4,060 million and $4,080 million, which incorporates lower expectations for performance in the Middle East and timeshare license fees compared to our prior guidance.
• Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are projected to be between $350 million and $375 million.
• General and administrative expenses are projected to be approximately $400 million.
• Net unit growth is projected to be between 6.0 percent and 7.0 percent, with expectations around the midpoint of the range, reflecting expected sequential growth in net additional rooms in the fourth quarter.
• System-wide comparable RevPAR, on a currency neutral basis, is projected to increase between 3.0 percent and 3.5 percent compared to the fourth quarter of 2025.
• Diluted EPS, adjusted for special items, is projected to be between $2.32 and $2.38.
Hilton will host a conference call to discuss third quarter 2026 results on October 27, 2026 at 9:00 a.m. Eastern Time. Participants may listen to the live webcast by logging on to the Hilton Investor Relations website at https://ir.hilton.com/events-and-presentations . A replay and transcript of the webcast will be available within 24 hours after the live event at https://ir.hilton.com/financial-reporting .
Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States ("U.S.") or 1-412-317-6061 internationally using the conference ID 4278941. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-855-669-9658 in the U.S. or 1-412-317-0088 internationally using the conference ID 9687068.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, future financial results, liquidity and capital resources and other non-historical statements. In some cases, you can identify these forward- looking statements by the use of words such as "outlook," "believes," "expects," "forecasts," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable 3 words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks inherent to the hospitality industry; macroeconomic factors beyond our control, such as inflation, changes in interest rates, challenges due to labor shortages or disputes and supply chain disruptions; the loss of key senior management personnel; competition for hotel guests and management and franchise contracts; risks related to doing business with third-party hotel owners; performance of our information technology systems; growth of reservation channels outside of our system; risks of doing business outside of the U.S.; risks associated with geopolitical conflicts, including Iran; uncertainty resulting from U.S. and global political trends, tariffs and other policies, including potential barriers to travel, trade and immigration and other geopolitical events; and our indebtedness. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I—Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which is filed with the Securities and Exchange Commission (the "SEC") and is accessible on the SEC's website at www.sec.gov . Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
See the "Definitions" section for the definition of certain terms used within this press release, including within the schedules.
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including: net income, adjusted for special items; diluted EPS, adjusted for special items; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA ratio. See the schedules to this press release, including the "Definitions" section, for additional information and reconciliations of such non-GAAP financial measures, as well as the most comparable GAAP financial measures.
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 28 world-class brands comprising more than 9,600 properties and over 1.4 million rooms, in 144 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 4 billion guests in its more than 100-year history. Named as the No. 1 World's Best Workplace by Great Place to Work and Fortune, Hilton aims to create the best culture for its 500,000 team members around the world. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the 270 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on facebook.com/hiltonnewsroom , x.com/hiltonnewsroom , linkedin.com/company/hilton , instagram.com/hiltonnewsroom and youtube.com/@hilton . 4
Page Condensed Consolidated Statements of Operations 6 Comparable and Currency Neutral System-Wide Hotel 7 Operating Statistics Property Summary 9 Capital Expenditures and Contract Acquisition 10 Costs Reconciliations of Non-GAAP Financial Measures 11 Definitions 16
(1) Excludes brands for which a significant number of the hotels were designated as non-comparable hotels as of the end of the period so as to make comparative statistics for such brand not meaningful.
(2) Includes hotels owned or leased by entities in which we own a noncontrolling financial interest. 8
(1) Includes hotels owned or leased by entities in which we own a noncontrolling financial interest.
(2) Includes hotels that are included in our booking channels and participate in the Hilton Honors guest loyalty program through strategic partnership arrangements.
(3) Includes other hotels in our system that are not distinguished by a specific Hilton brand.
(4) Includes properties under our timeshare brands including Hilton Club, Hilton Grand Vacations Club and Hilton Vacation Club. 9
(2) Represents expenditures for hotels, corporate and other property and equipment, which include amounts reimbursed by third parties of $8 million and $15 million for the three months ended September 30, 2026 and 2025, respectively, and $20 million and $37 million for the nine months ended September 30, 2026 and 2025, respectively. Excludes expenditures for FF&E replacement reserves of $17 million and $18 million for the three months ended September 30, 2026 and 2025, respectively, and $40 million and $50 million for the nine months ended September 30, 2026 and 2025, respectively.
(3) Includes $21 million and $18 million of expenditures that were reimbursed to us by third parties for the three months ended September 30, 2026 and 2025, respectively, and $65 million and $56 million for the nine months ended September 30, 2026 and 2025, respectively. 10
(1) Amounts include results from the operation of programs conducted for the benefit of property owners and exclude cash receipts recorded as deferred revenues on our condensed consolidated balance sheets related to these programs. Under the terms of the related contracts, we do not operate these programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures.
(2) Amounts include income tax expenses (benefits) related to the enactment of new tax laws and certain changes in unrecognized tax expenses (benefits).
(3) Amounts for the three and nine months ended September 30, 2026 include a loss related to the deconsolidation of a subsidiary which previously leased a hotel, which was recognized in other non-operating income (loss), net. Amount for the nine months ended September 30, 2025 includes expected credit losses on financing receivables, which were recognized in other non-operating income (loss), net, and restructuring costs related to one of our leased hotels, which were recognized in ownership expenses. Amounts for all periods include losses (gains) related to severance and other items, including non-cash charges, which are recognized in various line items, such as net losses (gains) related to certain of our investments in unconsolidated affiliates, which were recognized in other non-operating income (loss), net, and the amortization expense related to finite-lived intangible assets that were recorded at fair value in 2007 when the Company became a wholly owned subsidiary of affiliates of Blackstone Inc., which was recognized in depreciation and amortization expenses. 11
(1) Amounts include results from the operation of programs conducted for the benefit of property owners and exclude cash receipts recorded as deferred revenues on our condensed consolidated balance sheets related to these programs. Under the terms of the related contracts, we do not operate these programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures.
(2) Amounts for the three and nine months ended September 30, 2026 include a loss related to the deconsolidation of a subsidiary which previously leased a hotel. Amount for the nine months ended September 30, 2025 includes expected credit losses on financing receivables and restructuring costs related to one of our leased hotels. Amounts for all periods include losses (gains) related to severance and other items, including non-cash charges, such as net losses (gains) related to certain of our investments in unconsolidated affiliates.
(1) Amounts include revenues from the operation of programs conducted for the benefit of property owners and exclude cash receipts recorded as deferred revenues on our condensed consolidated balance sheets related to these programs. Under the terms of the related contracts, we do not operate these programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures. 12
2026 September 30, 2025 December 31, ────────────────────────────────────────────────────────────────────────────── Long-term debt, including current $ 13,357 $ 12,363 maturities Add: unamortized deferred financing 96 96 costs and discount Long-term debt, including current maturities and excluding the deduction 13,453 12,459 for unamortized deferred financing costs and discount Less: cash and cash equivalents -774 -918 Less: restricted cash and cash -56 -52 equivalents Net debt $ 12,623 $ 11,489
(1) Amounts include results from the operation of programs conducted for the benefit of property owners and exclude cash receipts recorded as deferred revenues on our condensed consolidated balance sheets related to these programs. Under the terms of the related contracts, we do not operate these programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures.
(2) Amount for the nine months ended September 30, 2026 includes a loss related to the deconsolidation of a subsidiary which previously leased a hotel. Amounts for nine months ended September 30, 2025 and year ended December 31, 2025 include expected credit losses on financing receivables and restructuring costs related to one of our leased hotels. Amount for the year ended December 31, 2025 also includes losses for the partial settlement of one of our pension plans. Amounts for all periods include losses (gains) related to severance and other items, including non-cash charges, such as net losses (gains) related to certain of our investments in unconsolidated affiliates. 13
Three Months Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── Low Case High Case Net income attributable to Hilton $ 507 $ 521 stockholders Diluted EPS(1) $ 2.25 $ 2.31 Special items(2): FF&E replacement reserves $ 20 $ 20 Total special items before 20 20 taxes Income tax expense on -5 -5 special items Total special items after $ 15 $ 15 taxes Net income, adjusted for $ 522 $ 536 special items Diluted EPS, adjusted for special $ 2.32 $ 2.38 items(1)
Year Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── Low Case High Case Net income attributable to Hilton $ 1,910 $ 1,924 stockholders Diluted EPS(1) $ 8.38 $ 8.44 Special items(2): Cost reimbursement $ -5,704 $ -5,704 revenues Reimbursed expenses 5,808 5,808 FF&E replacement reserves 60 60 Tax related adjustments 6 6 Other adjustments 36 36 Total special items before 206 206 taxes Income tax expense on -48 -48 special items Total special items after $ 158 $ 158 taxes Net income, adjusted for $ 2,068 $ 2,082 special items Diluted EPS, adjusted for special $ 9.07 $ 9.13 items(1)
(1) Does not include the effect of share repurchases made after September 30, 2026.
(2) See "—Net Income and Diluted EPS, Adjusted for Special Items" for details of these special items. 14
Three Months Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── Low Case High Case Net income $ 508 $ 522 Interest expense 197 197 Income tax expense 205 211 Depreciation and 57 57 amortization expenses FF&E replacement reserves 20 20 Share-based compensation 39 39 expense Amortization of contract acquisition 17 17 costs Other adjustments(1) 4 4 Adjusted EBITDA $ 1,047 $ 1,067
Year Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── Low Case High Case Net income $ 1,909 $ 1,923 Interest expense 726 726 Income tax expense 724 730 Depreciation and 208 208 amortization expenses Loss on foreign currency 19 19 transactions FF&E replacement reserves 60 60 Share-based compensation 204 204 expense Amortization of contract acquisition 65 65 costs Cost reimbursement -5,704 -5,704 revenues Reimbursed expenses 5,808 5,808 Other adjustments(1) 41 41 Adjusted EBITDA $ 4,060 $ 4,080
(1) See "—Net Income Margin and Adjusted EBITDA and Adjusted EBITDA Margin" for details of these adjustments. 15
This press release includes certain unaudited financial information for the trailing twelve months ("TTM") ended September 30, 2026, which is calculated as the nine months ended September 30, 2026 plus the year ended December 31, 2025 less the nine months ended September 30, 2025. This presentation is not in accordance with GAAP. However, we believe that this presentation provides useful information to investors regarding our recent financial performance, and we view this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess our historical results. In addition, our management uses TTM information to evaluate our financial performance for ongoing planning purposes.
Net Income (Loss), Adjusted for Special Items, and Diluted EPS, Adjusted for Special Items
Net income (loss), adjusted for special items is calculated as net income (loss) attributable to Hilton stockholders, as reported, plus total special items after taxes. Net income (loss), adjusted for special items, and diluted earnings (loss) per share ("EPS"), adjusted for special items, are not recognized terms under GAAP and should not be considered as alternatives to net income (loss), diluted EPS or other measures of financial performance or liquidity derived in accordance with GAAP. In addition, our definition of net income (loss), adjusted for special items, and diluted EPS, adjusted for special items, may not be comparable to similarly titled measures of other companies.
Net income (loss), adjusted for special items, and diluted EPS, adjusted for special items, are included to assist investors in performing meaningful comparisons of past, present and future operating results and as a means of highlighting the results of our ongoing operations.
Adjusted EBITDA is calculated as net income (loss), excluding interest expense, a provision for income tax benefit (expense) and depreciation and amortization expenses, as well as gains, losses, revenues and expenses earned or incurred in connection with: (i) asset dispositions for both consolidated and unconsolidated investments; (ii) foreign currency transactions; (iii) debt restructurings and retirements; (iv) furniture, fixtures and equipment ("FF&E") replacement reserves required under certain lease agreements; (v) share-based compensation; (vi) reorganization, severance, relocation and other expenses; (vii) non-cash impairment; (viii) amortization of contract acquisition costs; (ix) cost reimbursement revenues and reimbursed expenses; and (x) other items.
Net income (loss) margin represents net income (loss) as a percentage of total revenues. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of total revenues, adjusted to exclude the amortization of contract acquisition costs and cost reimbursement revenues.
We believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) these measures are used by our management team to evaluate our operating performance and make day-to-day operating decisions and (ii) these measures are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. Additionally, these measures exclude certain items that can vary widely across different industries and among competitors within our industry. For instance, interest expense and income taxes are dependent on company specifics, including, among other things, capital structure and operating jurisdictions, respectively, and, therefore, could vary significantly across companies. Depreciation and amortization expenses, as well as amortization of contract acquisition costs, are dependent upon company policies, including the method of acquiring and depreciating assets and the useful lives that are assigned to those depreciating or amortizing assets for accounting purposes. We also exclude items such as: (i) FF&E replacement reserves for leased hotels to be consistent with the treatment of capital expenditures for property and equipment, where depreciation of such capitalized assets is reported within depreciation and amortization expenses; (ii) share-based compensation, as this could vary widely among companies due to the different plans in place and the usage of them; and (iii) other items that are not reflective of our operating performance, such as amounts related to debt restructurings and debt retirements and reorganization and related severance costs, to enhance period-over-period comparisons of our ongoing operations. Further, Adjusted EBITDA excludes both cost reimbursement revenues and reimbursed expenses as we contractually do not operate the related programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures. The direct reimbursements from property owners are billable and reimbursable as the costs are incurred and have no net effect on net income (loss) in the reporting period. The indirect reimbursements from property owners are typically billed and collected monthly, based on the underlying hotel's sales or usage (e.g., gross room revenue or number of reservations processed), while the associated costs are recognized as incurred by Hilton, creating timing differences, with the net effect impacting net income (loss) in the reporting period. These timing differences are due to our discretion to spend in excess of revenues earned or less than revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our property owners. However, over the life of the operation of these programs, the expenses incurred related to the indirect reimbursements are designed to equal the revenues earned from the indirect reimbursements over time such that, in the long term, the programs will not earn a profit or generate a loss and do not impact our economics, either 16 positively or negatively. Therefore, the net effect of our reimbursed revenues and expenses is not used by management to evaluate our operating performance, determine executive compensation or make other operating decisions, and we exclude their impact when evaluating period over period performance results.
Adjusted EBITDA and Adjusted EBITDA margin are not recognized terms under GAAP and should not be considered as alternatives, either in isolation or as a substitute, for net income (loss), net income (loss) margin or other measures of financial performance or liquidity, including cash flows, derived in accordance with GAAP. Further, Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, may not be comparable to similarly titled measures of other companies and should not be considered as other methods of analyzing our results as reported under GAAP.
Net Debt, Long-Term Debt to Net Income (Loss) Ratio and Net Debt to Adjusted EBITDA Ratio
Long-term debt to net income (loss) ratio is calculated as the ratio of Hilton's long-term debt, including current maturities, to net income (loss). Net debt is calculated as: long-term debt, including current maturities and excluding the deduction for unamortized deferred financing costs and discounts; reduced by: (i) cash and cash equivalents and (ii) restricted cash and cash equivalents. Net debt to Adjusted EBITDA ratio is calculated as the ratio of Hilton's net debt to Adjusted EBITDA. Net debt and net debt to Adjusted EBITDA ratio, presented herein, are non-GAAP financial measures that the Company uses to evaluate its financial leverage.
Net debt should not be considered as a substitute for debt presented in accordance with GAAP, and net debt to Adjusted EBITDA ratio should not be considered as an alternative to measures of financial condition derived in accordance with GAAP. Net debt and net debt to Adjusted EBITDA ratio may not be comparable to similarly titled measures of other companies. We believe net debt and net debt to Adjusted EBITDA ratio provide useful information about our indebtedness to investors as they are frequently used by securities analysts, investors and other interested parties to compare the indebtedness between companies.
We define our comparable hotels as those that were active and operating in our system for at least one full calendar year and were open January 1st of the previous year. We exclude hotels that have undergone a change in brand or ownership type or a large-scale capital project during the current or comparable periods or otherwise do not have available comparable results, such as those that have sustained substantial property damage or encountered business interruption. We exclude strategic partner hotels from our comparable hotels. Of the 9,494 hotels in our system as of September 30, 2026, 585 hotels were strategic partner hotels and 6,679 hotels were classified as comparable hotels. Our 2,230 non-comparable hotels as of September 30, 2026 included (i) 1,143 hotels that were added to our system after January 1, 2025 or that have undergone a change in brand or ownership type during the current or comparable periods reported and (ii) 1,087 hotels that were removed from the comparable group for the current or comparable periods reported because they underwent or are undergoing large-scale capital projects, sustained substantial property damage, encountered business interruption or comparable results were otherwise not available for them.
Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels for a given period. Occupancy measures the utilization of available capacity at a hotel or group of hotels. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate ("ADR") pricing levels as demand for hotel rooms increases or decreases.
ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel, and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and we use ADR to assess pricing levels that we are able to generate by type of customer, as changes in rates charged to customers have different effects on overall revenues and incremental profitability than changes in occupancy, as described above.
RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. We consider RevPAR to be a meaningful indicator of our performance as it provides a metric correlated to two primary and key drivers of operations at a hotel or group of hotels, as previously described: occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods for comparable hotels.
References to occupancy, ADR and RevPAR are presented on a comparable basis, based on the comparable hotels as of September 30, 2026, and references to ADR and RevPAR are presented on a currency neutral basis, unless otherwise noted. As 17 such, comparisons of these hotel operating statistics for the three and nine months ended September 30, 2026 and 2025 use foreign currency exchange rates for the three and nine months ended September 30, 2026, respectively.
Rooms under construction include rooms for hotels under construction or operating hotels that are in the process of conversion to our system. 18
Full text with the tables
Investor Contact 7930 Jones Branch Drive
Charlie Ruehr McLean, VA 22102
+1 703 883 1000 ir.hilton.com
Media Contact
Kent Landers
+1 703 883 3246
Hilton Reports Third Quarter Results
MCLEAN, VA (October 27, 2026) - Hilton Worldwide Holdings Inc. ("Hilton," "the
Company," "we," "us" or "our") (NYSE: HLT) today reported its third quarter 2026
results. Highlights include:
•
Diluted EPS was $2.37 for the third quarter, and diluted EPS, adjusted for
special items, was $2.45
•
Net income was $536 million for the third quarter
•
Adjusted EBITDA was $1,058 million for the third quarter
•
System-wide comparable RevPAR increased 5.8 percent, on a currency neutral
basis, for the third quarter compared to the same period in 2025
•
Approved 30,500 new rooms for development during the third quarter, bringing our
development pipeline to 543,100 rooms as of September 30, 2026, representing
growth of 5 percent from September 30, 2025
•
Added 27,000 rooms to our system, resulting in 23,000 net additional rooms for
the third quarter, up 6.5 percent sequentially from the second quarter,
contributing to net unit growth of 6.0 percent from September 30, 2025
•
Announced the appointment of Jeff Moore as Executive Vice President and Chief
Technology Officer. Jeff will harness his deep experience developing consumer-
facing technologies and Hilton’s already-industry-leading technology platform to
strengthen the Company's commitment to lead the industry in technology
innovation
•
On October 20, announced that Hilton will transfer its stock listing to Nasdaq
under its existing ticker, "HLT," effective November 5, 2026. The move aligns
with the Company's innovation and growth ambitions, and no action is required by
shareholders
•
Repurchased 2.6 million shares of Hilton common stock during the third quarter,
bringing total capital return, including dividends, to $879 million for the
quarter and $2,902 million year to date through October
•
Full year 2026 system-wide RevPAR is projected to increase between 4.0 percent
and 4.5 percent on a comparable and currency neutral basis compared to 2025;
full year net income is projected to be between $1,909 million and $1,923
million; full year Adjusted EBITDA is projected to be between $4,060 million and
$4,080 million
•
Full year 2026 capital return is projected to be approximately $3.5
billion
1
Overview
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said,
"We delivered strong top and bottom-line results for the third quarter that
exceeded our expectations. Our results were driven by momentum across our
system, which we expect to continue for the remainder of the year and into 2027.
We achieved our highest quarter ever for organic openings, and the continued
quarterly sequential increases give us confidence in delivering net unit growth
around the midpoint of our 6.0% to 7.0% full-year guidance range.”
For the three months ended September 30, 2026, system-wide comparable RevPAR
increased 5.8 percent compared to the same period in 2025 due to an increase in
both occupancy and ADR. Management and franchise fee revenues increased 9.5
percent compared to the same period in 2025.
For the nine months ended September 30, 2026, system-wide comparable RevPAR
increased 4.7 percent compared to the same period in 2025 due to an increase in
both occupancy and ADR. Management and franchise fee revenues increased 8.7
percent compared to the same period in 2025.
For the three months ended September 30, 2026, diluted EPS was $2.37 and diluted
EPS, adjusted for special items, was $2.45, compared to $1.78 and $2.11,
respectively, for the three months ended September 30, 2025. Net income and
Adjusted EBITDA were $536 million and $1,058 million, respectively, for the
three months ended September 30, 2026, compared to $421 million and $976
million, respectively, for the three months ended September 30, 2025.
For the nine months ended September 30, 2026, diluted EPS was $6.13 and diluted
EPS, adjusted for special items, was $6.75, compared to $4.84 and $6.03,
respectively, for the nine months ended September 30, 2025. Net income and
Adjusted EBITDA were $1,401 million and $3,013 million, respectively for the
nine months ended September 30, 2026, compared to $1,163 million and $2,779
million, respectively, for the nine months ended September 30, 2025.
Development
In the third quarter of 2026, we opened 182 hotels, totaling 27,000 rooms,
resulting in 23,000 net room additions. Notable openings included the Hale
Hokuala Kauai, Curio Collection by Hilton, which marked the debut of the
lifestyle brand in Hawaii, and the Den Bengaluru, LXR Hotels & Resorts, marking
the luxury brand’s debut in India. Additionally, we opened the DoubleTree by
Hilton Singapore Robertson Quay, the Canopy by Hilton Bangkok Sukhumvit and the
Spark by Hilton Milan Linate Airport, which marked the brands' debuts in
Singapore, Thailand and Italy, respectively. We also opened our first hotels
under Select by Hilton during the quarter, following its launch earlier this
year. The opening of the Hilton Istanbul Airport marked the 100th hotel in
Türkiye, and we expect to continue to see expansion in the Middle East & Africa
region, with more than 20 signings during the quarter. We also continued to
expand our global luxury development pipeline with new signings across Waldorf
Astoria Hotels & Resorts, Conrad Hotels & Resorts and LXR Hotels & Resorts,
including Waldorf Astoria Seychelles Mahe, Conrad Bengaluru Airport and Iona
Galapagos, LXR Hotels & Resorts.
We added 30,500 rooms to the development pipeline during the third quarter, and,
as of September 30, 2026, our development pipeline totaled 3,869 hotels
representing 543,100 rooms throughout 135 countries and territories, including
26 countries and territories where we 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.
Balance Sheet and Liquidity
As of September 30, 2026, we had $13.5 billion of debt outstanding, excluding
the deduction for unamortized deferred financing costs and discount, with a
weighted average interest rate of 5.09 percent. Excluding all finance lease
liabilities, we had $13.1 billion of debt outstanding with a weighted average
interest rate of 5.10 percent and no material indebtedness that matures until
April 2029, other than $600 million of outstanding Senior Notes due April 2027.
We believe that we have sufficient sources of liquidity and access to debt
financing to address the Senior Notes due April 2027 at or prior to their
maturity date as well as all indebtedness that becomes due thereafter.
As of September 30, 2026, no borrowings were outstanding under our senior
secured revolving credit facility, which had an available borrowing capacity of
$1,894 million after considering $106 million of letters of credit outstanding.
Total cash and cash equivalents were $830 million as of September 30, 2026,
including $56 million of restricted cash and cash equivalents.
In September 2026, we paid a quarterly cash dividend of $0.15 per share of
common stock, for a total payment of $34 million, bringing total dividend
payments for the year to $103 million. In October 2026, our board of directors
authorized a regular quarterly cash dividend of $0.15 per share of common stock
to be paid on December 29, 2026 to holders of record of our common stock as of
the close of business on December 1, 2026.
During the three months ended September 30, 2026, we repurchased 2.6 million
shares of Hilton common stock at an average price per share of $320.05, for a
total of $845 million. During the nine months ended September 30, 2026 we
repurchased 8.2 million shares of Hilton common stock at an average price per
share of $316.36, returning $2,705 million of capital to shareholders, including
dividends. Total capital return to shareholders, including dividends year-to-
date through October, was $2,902 million.
2
The number of shares outstanding as of October 22, 2026 was 222.5 million.
Outlook
Share-based metrics in Hilton's outlook include actual share repurchases through
the third quarter but do not include the effects of potential share repurchases
thereafter.
Full Year 2026
• System-wide comparable RevPAR, on a currency neutral basis, is projected to
increase between 4.0 percent and 4.5 percent compared to 2025.
◦ Third quarter benefited from the World Cup and favorable calendar and holiday
shifts; the fourth quarter is expected to be affected by midterm elections and
increased impact from the Middle East.
• Diluted EPS is projected to be between $8.38 and $8.44.
• Diluted EPS, adjusted for special items, is projected to be between $9.07 and
$9.13.
• Net income is projected to be between $1,909 million and $1,923 million.
• Adjusted EBITDA is projected to be between $4,060 million and $4,080 million,
which incorporates lower expectations for performance in the Middle East and
timeshare license fees compared to our prior guidance.
• Contract acquisition costs and capital expenditures, excluding amounts
reimbursed by third parties, are projected to be between $350 million and $375
million.
• Capital return is projected to be approximately $3.5 billion.
• General and administrative expenses are projected to be approximately $400
million.
• Net unit growth is projected to be between 6.0 percent and 7.0 percent, with
expectations around the midpoint of the range, reflecting expected sequential
growth in net additional rooms in the fourth quarter.
Fourth Quarter 2026
• System-wide comparable RevPAR, on a currency neutral basis, is projected to
increase between 3.0 percent and 3.5 percent compared to the fourth quarter of
2025.
• Diluted EPS is projected to be between $2.25 and $2.31.
• Diluted EPS, adjusted for special items, is projected to be between $2.32 and
$2.38.
• Net income is projected to be between $508 million and $522 million.
• Adjusted EBITDA is projected to be between $1,047 million and $1,067 million.
Conference Call
Hilton will host a conference call to discuss third quarter 2026 results on
October 27, 2026 at 9:00 a.m. Eastern Time. Participants may listen to the live
webcast by logging on to the Hilton Investor Relations website at
https://ir.hilton.com/events-and-presentations . A replay and transcript of the
webcast will be available within 24 hours after the live event at
https://ir.hilton.com/financial-reporting .
Alternatively, participants may listen to the live call by dialing
1-888-317-6003 in the United States ("U.S.") or 1-412-317-6061 internationally
using the conference ID 4278941. Participants are encouraged to dial into the
call or link to the webcast at least fifteen minutes prior to the scheduled
start time. A telephone replay will be available for seven days following the
call. To access the telephone replay, dial 1-855-669-9658 in the U.S. or
1-412-317-0088 internationally using the conference ID 9687068.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements include, but are
not limited to, statements related to our expectations regarding the performance
of our business, future financial results, liquidity and capital resources and
other non-historical statements. In some cases, you can identify these forward-
looking statements by the use of words such as "outlook," "believes," "expects,"
"forecasts," "potential," "continues," "may," "will," "should," "could,"
"seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates"
or the negative version of these words or other comparable
3
words. Such forward-looking statements are subject to various risks and
uncertainties including, among others, risks inherent to the hospitality
industry; macroeconomic factors beyond our control, such as inflation, changes
in interest rates, challenges due to labor shortages or disputes and supply
chain disruptions; the loss of key senior management personnel; competition for
hotel guests and management and franchise contracts; risks related to doing
business with third-party hotel owners; performance of our information
technology systems; growth of reservation channels outside of our system; risks
of doing business outside of the U.S.; risks associated with geopolitical
conflicts, including Iran; uncertainty resulting from U.S. and global political
trends, tariffs and other policies, including potential barriers to travel,
trade and immigration and other geopolitical events; and our indebtedness.
Additional factors that could cause our results to differ materially from those
described in the forward-looking statements can be found under the section
entitled "Part I—Item 1A. Risk Factors" of our Annual Report on Form 10-K for
the fiscal year ended December 31, 2025, which is filed with the Securities and
Exchange Commission (the "SEC") and is accessible on the SEC's website at
www.sec.gov . Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those indicated in
these statements. These factors should not be construed as exhaustive and should
be read in conjunction with the other cautionary statements that are included in
this press release and in our filings with the SEC. We undertake no obligation
to publicly update or revise any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as required by law.
Definitions
See the "Definitions" section for the definition of certain terms used within
this press release, including within the schedules.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S.
generally accepted accounting principles ("GAAP") in this press release,
including: net income, adjusted for special items; diluted EPS, adjusted for
special items; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt
to Adjusted EBITDA ratio. See the schedules to this press release, including the
"Definitions" section, for additional information and reconciliations of such
non-GAAP financial measures, as well as the most comparable GAAP financial
measures.
About Hilton
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of
28 world-class brands comprising more than 9,600 properties and over 1.4 million
rooms, in 144 countries and territories. Dedicated to fulfilling its founding
vision to fill the earth with the light and warmth of hospitality, Hilton has
welcomed over 4 billion guests in its more than 100-year history. Named as the
No. 1 World's Best Workplace by Great Place to Work and Fortune, Hilton aims to
create the best culture for its 500,000 team members around the world. Hilton
has introduced industry-leading technology enhancements to improve the guest
experience, including Digital Key Share, automated complimentary room upgrades
and the ability to book confirmed connecting rooms. Through the award-winning
guest loyalty program Hilton Honors, the 270 million Hilton Honors members who
book directly with Hilton can earn Points for hotel stays and experiences money
can't buy. With the free Hilton Honors app, guests can book their stay, select
their room, check in, unlock their door with a Digital Key and check out, all
from their smartphone. Visit stories.hilton.com for more information, and
connect with Hilton on facebook.com/hiltonnewsroom , x.com/hiltonnewsroom ,
linkedin.com/company/hilton , instagram.com/hiltonnewsroom and
youtube.com/@hilton .
4
HILTON WORLDWIDE HOLDINGS INC.
EARNINGS RELEASE SCHEDULES
TABLE OF CONTENTS
Page
Condensed Consolidated Statements of Operations 6
Comparable and Currency Neutral System-Wide Hotel 7
Operating Statistics
Property Summary 9
Capital Expenditures and Contract Acquisition 10
Costs
Reconciliations of Non-GAAP Financial Measures 11
Definitions 16
5
HILTON WORLDWIDE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(unaudited)
Three Nine
Months Months
Ended Ended
September Septemb…
30, 30,
Revenu… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Franch…
and $ 815 $ 739 $ 2,319 $ 2,109
licens…
fees
Base
and
other 96 93 290 278
manage…
fees
Incent…
manage… 71 65 216 212
fees
Owners… 304 322 864 888
Other 72 64 210 187
revenu…
1,358 1,283 3,899 3,674
Cost
reimbu… 1,967 1,837 5,704 5,278
revenu…
Total 3,325 3,120 9,603 8,952
revenu…
Expens…
Owners… 271 277 772 802
Deprec…
and 52 46 151 130
amorti…
General
and 110 95 327 298
admini…
Other 32 23 100 75
expens…
465 441 1,350 1,305
Reimbu… 1,951 1,902 5,808 5,556
expens…
Total 2,416 2,343 7,158 6,861
expens…
Operat… 909 777 2,445 2,091
income
Intere… -184 -159 -529 -455
expense
Loss on
foreign -7 -9 -19 -8
curren…
transa…
Other
non-op…
income 4 -5 23 15
(loss),
net
Income
before 722 604 1,920 1,643
income
taxes
Income
tax -186 -183 -519 -480
expense
Net 536 421 1,401 1,163
income
Net
loss
(incom…
attrib…
to — -1 2 -3
redeem…
and
nonred…
noncon…
intere…
Net
income
attrib… $ 536 $ 420 $ 1,403 $ 1,160
to
Hilton
stockh…
Weight…
average
shares
outsta…
Basic 224 234 227 237
Diluted 226 237 229 240
Earnin…
per
share:
Basic $ 2.39 $ 1.79 $ 6.18 $ 4.89
Diluted $ 2.37 $ 1.78 $ 6.13 $ 4.84
Cash
divide…
declar… $ 0.15 $ 0.15 $ 0.45 $ 0.45
per
share
6
HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY REGION, BRAND AND SEGMENT
(unaudited)
Th…
Mo…
En…
Se…
30, vs. vs. v…
Oc… 2… 20… ADR 2… 20… R… 20… 2…
──────────────────────────────────────────────────────────────────────────────
… 7… % 1.4 % p… $ 1… 3.9 % $ 12… 5… %
…
… 7… % 2.1 % p… $ 1… 4.1 % $ 13… 7… %
…
… 7… 0.8 1… 5.1 11… 6…
…
… 8… 2.0 1… 3.9 15… 6…
…
… 6… -5… 1… 1.7 10… -…
&
…
… 7… -0… 9… 0.5 71… -…
…
…
…
…
… 6… % 2.9 % p… $ 4… 8.8 % $ 30… 1… %
&
…
…
… 7… -1… 2… 6.8 20… 5…
&
…
…
… 5… -0… 5… 16… 32… 1…
&
…
…
… 7… 2.9 2… 5.1 18… 9…
…
…
… 7… 0.7 1… 4.5 14… 5…
&
…
…
… 7… 3.4 2… 3.5 18… 8…
…
…
…
… 7… 3.9 2… 4.4 17… 1…
…
…
… 7… 1.1 1… 3.9 11… 5…
…
…
… 7… 3.3 2… 4.1 15… 9…
…
…
…
… 7… 2.1 1… 4.0 14… 7…
…
…
…
… 8… -0… 2… 9.1 18… 8…
…
…
… 7… 1.0 1… 3.7 11… 5…
…
…
… 7… 0.9 1… 3.2 10… 4…
…
…
… 7… 1.8 1… 3.3 10… 5…
…
…
… 8… 2.3 1… 3.1 14… 6…
…
…
…
… 8… 2.6 1… 2.9 11… 6…
…
…
…
…
… 7… % 1.3 % p… $ 1… 4.0 % $ 12… 5… %
…
… 8… 1.9 2… 2.7 19… 5…
(continued on next page)
7
HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY REGION, BRAND AND SEGMENT
(unaudited)
Ni…
Mo…
En…
Se…
30, vs. vs. v…
Oc… 2… 20… ADR 2… 20… R… 20… 2…
──────────────────────────────────────────────────────────────────────────────
… 7… % 1.4 % p… $ 1… 2.7 % $ 11… 4… %
…
… 7… % 1.9 % p… $ 1… 2.9 % $ 13… 5… %
…
… 6… 0.9 1… 3.9 10… 5…
…
… 7… 2.2 1… 3.0 13… 6…
…
… 6… -8… 1… -0… 11… -…
&
…
… 6… 0.8 9… 0.5 68… 1…
…
…
…
…
… 6… % 0.4 % p… $ 4… 3.5 % $ 31… 4… %
&
…
…
… 7… -0… 2… 3.6 20… 2…
&
…
…
… 5… 3.6 5… 7.7 32… 1…
&
…
…
… 7… 1.9 2… 3.4 17… 6…
…
…
… 7… 1.1 1… 2.7 14… 4…
&
…
…
… 7… 2.8 2… 2.7 17… 6…
…
…
…
… 6… 2.8 2… 3.6 15… 8…
…
…
… 7… 1.1 1… 2.8 10… 4…
…
…
… 7… 3.4 1… 3.1 13… 8…
…
…
…
… 7… 1.8 1… 2.9 14… 5…
…
…
…
… 7… 0.2 2… 4.0 17… 4…
…
…
… 7… 0.9 1… 2.5 10… 3…
…
…
… 7… 1.0 1… 2.5 96… 3…
…
…
… 7… 1.4 1… 2.9 97… 4…
…
…
… 8… 2.0 1… 2.3 13… 4…
…
…
…
… 7… 2.6 1… 2.3 10… 5…
…
…
…
…
… 7… % 1.4 % p… $ 1… 2.7 % $ 11… 4… %
…
… 7… 2.9 2… -1… 17… 2…
____________
(1) Excludes brands for which a significant number of the hotels were designated
as non-comparable hotels as of the end of the period so as to make comparative
statistics for such brand not meaningful.
(2) Includes hotels owned or leased by entities in which we own a noncontrolling
financial interest.
8
HILTON WORLDWIDE HOLDINGS INC.
PROPERTY SUMMARY
As of September 30, 2026
F…
O… M… / T…
L…
P… R… P… R… P… R… P… R…
…
…
… 2 4… 38 … — — … …
&
…
…
… 1 1… 46 … 6 … … …
&
…
…
… — — 7 … … … … …
&
…
… — — 1 … — — 1 …
… — — 6 … — — 6 …
…
…
… — — 16 … … … … …
…
…
… 42 1… 3… … … … … …
&
…
…
… — — 37 … … … … …
…
…
…
… — — — — … … … …
…
…
… — — 1… … … … … …
…
…
… — — 11 … … … … …
…
…
…
… — — 34 … … … … …
…
…
…
… — — 1 … 9 … … …
…
…
… — — — — 5 … 5 …
…
…
…
… — — — — … … … …
…
…
… — — 1… … … … … …
…
…
… — — 50 … … … … …
…
…
… — — 14 … … … … …
…
…
… — — 2 … … … … …
…
…
… — — 7 … … … … …
…
…
…
… — — 2 … … … … …
…
…
…
… — — — — 7 … 7 …
…
…
…
… — — — — 5 … 5 …
…
…
…
… — — — — … … … …
…
…
… — — — — … … … …
…
… — — 5 … … … … …
… 45 1… 8… … … … … …
…
…
… — — — — … … … …
…
… 45 1… 8… … … … … …
…
F…
O… M… / T…
L…
P… R… P… R… P… R… P… R…
… — — 1… … … … … …
…
… — — 68 … … … … …
…
… 37 1… 1… … … … … …
…
… 3 1… 1… … … … … …
&
…
… 5 2… 4… … … … … …
…
… 45 1… 8… … … … … …
…
…
… — — — — … … … …
…
… 45 1… 8… … … … … …
…
____________
(1) Includes hotels owned or leased by entities in which we own a noncontrolling
financial interest.
(2) Includes hotels that are included in our booking channels and participate in
the Hilton Honors guest loyalty program through strategic partnership
arrangements.
(3) Includes other hotels in our system that are not distinguished by a specific
Hilton brand.
(4) Includes properties under our timeshare brands including Hilton Club, Hilton
Grand Vacations Club and Hilton Vacation Club.
9
HILTON WORLDWIDE HOLDINGS INC.
CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS
(dollars in millions)
(unaudited)
Three
Months September Increase /
Ended 30, (Decrease)
──────────────────────────────────────────────────────────────────────────────
2026 2025 $ %
Capital
expenditu…
for $ 32 $ 29 3 10.3
property
and
equipment…
Capitaliz…
software 23 21 2 9.5
costs(3)
Total
capital 55 50 5 10.0
expenditu…
Contract
acquisiti…
costs, net 78 31 47 NM(1)
of
refunds
Total
capital
expenditu…
and $ 133 $ 81 52 64.2
contract
acquisiti…
costs
Nine
Months September Increase /
Ended 30, (Decrease)
──────────────────────────────────────────────────────────────────────────────
2026 2025 $ %
Capital
expenditu…
for $ 53 $ 71 -18 -25.4
property
and
equipment…
Capitaliz…
software 70 62 8 12.9
costs(3)
Total
capital 123 133 -10 -7.5
expenditu…
Contract
acquisiti…
costs, net 155 103 52 50.5
of
refunds
Total
capital
expenditu…
and $ 278 $ 236 42 17.8
contract
acquisiti…
costs
___________
(1) Fluctuation in terms of percentages change is not meaningful.
(2) Represents expenditures for hotels, corporate and other property and
equipment, which include amounts reimbursed by third parties of $8 million and
$15 million for the three months ended September 30, 2026 and 2025,
respectively, and $20 million and $37 million for the nine months ended
September 30, 2026 and 2025, respectively. Excludes expenditures for FF&E
replacement reserves of $17 million and $18 million for the three months ended
September 30, 2026 and 2025, respectively, and $40 million and $50 million for
the nine months ended September 30, 2026 and 2025, respectively.
(3) Includes $21 million and $18 million of expenditures that were reimbursed to
us by third parties for the three months ended September 30, 2026 and 2025,
respectively, and $65 million and $56 million for the nine months ended
September 30, 2026 and 2025, respectively.
10
HILTON WORLDWIDE HOLDINGS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS
(in millions, except per share data)
(unaudited)
Three Nine
Months Months
Ended Septe… Ended Septe…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
attri…
to $ 536 $ 420 $ 1,403 $ 1,160
Hilton
stock…
as
repor…
Dilut…
EPS, $ 2.37 $ 1.78 $ 6.13 $ 4.84
as
repor…
Speci…
items:
Cost
reimb… $ -1,967 $ -1,837 $ -5,704 $ -5,278
reven…
Reimb… 1,951 1,902 5,808 5,556
expen…
FF&E
repla… 17 18 40 50
reser…
Tax-r… 3 — 6 3
adjus…
Other 20 19 36 40
adjus…
Total
speci…
items 24 102 186 371
before
taxes
Income
tax
expen… -4 -24 -43 -88
on
speci…
items
Total
speci…
items $ 20 $ 78 $ 143 $ 283
after
taxes
Net
incom…
adjus… $ 556 $ 498 $ 1,546 $ 1,443
for
speci…
items
Dilut…
EPS,
adjus… $ 2.45 $ 2.11 $ 6.75 $ 6.03
for
speci…
items
____________
(1) Amounts include results from the operation of programs conducted for the
benefit of property owners and exclude cash receipts recorded as deferred
revenues on our condensed consolidated balance sheets related to these programs.
Under the terms of the related contracts, we do not operate these programs to
generate a profit and have contractual rights to adjust future collections to
recover prior period expenditures.
(2) Amounts include income tax expenses (benefits) related to the enactment of
new tax laws and certain changes in unrecognized tax expenses (benefits).
(3) Amounts for the three and nine months ended September 30, 2026 include a
loss related to the deconsolidation of a subsidiary which previously leased a
hotel, which was recognized in other non-operating income (loss), net. Amount
for the nine months ended September 30, 2025 includes expected credit losses on
financing receivables, which were recognized in other non-operating income
(loss), net, and restructuring costs related to one of our leased hotels, which
were recognized in ownership expenses. Amounts for all periods include losses
(gains) related to severance and other items, including non-cash charges, which
are recognized in various line items, such as net losses (gains) related to
certain of our investments in unconsolidated affiliates, which were recognized
in other non-operating income (loss), net, and the amortization expense related
to finite-lived intangible assets that were recorded at fair value in 2007 when
the Company became a wholly owned subsidiary of affiliates of Blackstone Inc.,
which was recognized in depreciation and amortization expenses.
11
HILTON WORLDWIDE HOLDINGS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
NET INCOME MARGIN AND
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(dollars in millions)
(unaudited)
Three Nine
Months Months
Ended Septe… Ended Septe…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 536 $ 421 $ 1,401 $ 1,163
income
Inter… 184 159 529 455
expen…
Income
tax 186 183 519 480
expen…
Depre…
and 52 46 151 130
amort…
expen…
Loss
on
forei… 7 9 19 8
curre…
trans…
FF&E
repla… 17 18 40 50
reser…
Share…
compe… 59 44 165 135
expen…
Amort…
of
contr… 16 15 48 42
acqui…
costs
Cost
reimb… -1,967 -1,837 -5,704 -5,278
reven…
Reimb… 1,951 1,902 5,808 5,556
expen…
Other 17 16 37 38
adjus…
Adjus… $ 1,058 $ 976 $ 3,013 $ 2,779
EBITDA
____________
(1) Amounts include results from the operation of programs conducted for the
benefit of property owners and exclude cash receipts recorded as deferred
revenues on our condensed consolidated balance sheets related to these programs.
Under the terms of the related contracts, we do not operate these programs to
generate a profit and have contractual rights to adjust future collections to
recover prior period expenditures.
(2) Amounts for the three and nine months ended September 30, 2026 include a
loss related to the deconsolidation of a subsidiary which previously leased a
hotel. Amount for the nine months ended September 30, 2025 includes expected
credit losses on financing receivables and restructuring costs related to one of
our leased hotels. Amounts for all periods include losses (gains) related to
severance and other items, including non-cash charges, such as net losses
(gains) related to certain of our investments in unconsolidated affiliates.
Three Nine
Mont… Mont…
Ended Sept… Ended Sep…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Tot…
rev… $ 3,325 $ 3,1… $ 9,6… $ 8,952
as
rep…
Add:
amo…
of 16 15 48 42
con…
acq…
cos…
Les…
cost -1,9… -1,… -5,… -5,2…
rei…
rev…
Tot…
rev… $ 1,374 $ 1,2… $ 3,9… $ 3,716
as
adj…
Net $ 536 $ 421 $ 1,4… $ 1,163
inc…
Net
inc… 16.1 % 13.5 % 14.6 % 13.0 %
mar…
Adj… $ 1,058 $ 976 $ 3,0… $ 2,779
EBI…
Adj…
EBI… 77.0 % 75.2 % 76.3 % 74.8 %
mar…
____________
(1) Amounts include revenues from the operation of programs conducted for the
benefit of property owners and exclude cash receipts recorded as deferred
revenues on our condensed consolidated balance sheets related to these programs.
Under the terms of the related contracts, we do not operate these programs to
generate a profit and have contractual rights to adjust future collections to
recover prior period expenditures.
12
HILTON WORLDWIDE HOLDINGS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
LONG-TERM DEBT TO NET INCOME RATIO AND
NET DEBT AND NET DEBT TO ADJUSTED EBITDA RATIO
(dollars in millions)
(unaudited)
2026 September 30, 2025 December 31,
──────────────────────────────────────────────────────────────────────────────
Long-term debt, including
current $ 13,357 $ 12,363
maturities
Add: unamortized deferred
financing 96 96
costs and discount
Long-term debt, including
current
maturities and excluding the
deduction 13,453 12,459
for unamortized deferred
financing costs
and discount
Less: cash and cash equivalents -774 -918
Less: restricted cash and cash -56 -52
equivalents
Net debt $ 12,623 $ 11,489
Nine
Months Year TTM
Ended Ended Ended
──────────────────────────────────────────────────────────────────────────────
Septe… Decem… Septem…
30, 31, 30,
2026 2025 2025 2026
Net $ 1,401 $ 1,163 $ 1,461 $ 1,699
inco…
Inte… 529 455 620 694
expe…
Inco…
tax 519 480 611 650
expe…
Depr…
and 151 130 177 198
amor…
expe…
Loss
on
fore… 19 8 11 22
curr…
tran…
FF&E
repl… 40 50 73 63
rese…
Shar…
comp… 165 135 170 200
expe…
Amor…
of
cont… 48 42 57 63
acqu…
costs
Cost
reim… -5,704 -5,278 -7,085 -7,511
reve…
Reim… 5,808 5,556 7,550 7,802
expe…
Other 37 38 80 79
adju…
Adju… $ 3,013 $ 2,779 $ 3,725 $ 3,959
EBIT…
Long… $ 13,357
debt
Long…
debt
to 7.9
net
inco…
ratio
Net $ 12,623
debt
Net
debt
to 3.2
Adju…
EBIT…
ratio
____________
(1) Amounts include results from the operation of programs conducted for the
benefit of property owners and exclude cash receipts recorded as deferred
revenues on our condensed consolidated balance sheets related to these programs.
Under the terms of the related contracts, we do not operate these programs to
generate a profit and have contractual rights to adjust future collections to
recover prior period expenditures.
(2) Amount for the nine months ended September 30, 2026 includes a loss related
to the deconsolidation of a subsidiary which previously leased a hotel. Amounts
for nine months ended September 30, 2025 and year ended December 31, 2025
include expected credit losses on financing receivables and restructuring costs
related to one of our leased hotels. Amount for the year ended December 31, 2025
also includes losses for the partial settlement of one of our pension plans.
Amounts for all periods include losses (gains) related to severance and other
items, including non-cash charges, such as net losses (gains) related to certain
of our investments in unconsolidated affiliates.
13
HILTON WORLDWIDE HOLDINGS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
OUTLOOK: NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS
(in millions, except per share data)
(unaudited)
Three Months Ending
December 31, 2026
──────────────────────────────────────────────────────────────────────────────
Low Case High Case
Net income attributable to
Hilton $ 507 $ 521
stockholders
Diluted EPS(1) $ 2.25 $ 2.31
Special items(2):
FF&E replacement reserves $ 20 $ 20
Total special items before 20 20
taxes
Income tax expense on -5 -5
special items
Total special items after $ 15 $ 15
taxes
Net income, adjusted for $ 522 $ 536
special items
Diluted EPS, adjusted for
special $ 2.32 $ 2.38
items(1)
Year Ending
December 31, 2026
──────────────────────────────────────────────────────────────────────────────
Low Case High Case
Net income attributable to
Hilton $ 1,910 $ 1,924
stockholders
Diluted EPS(1) $ 8.38 $ 8.44
Special items(2):
Cost reimbursement $ -5,704 $ -5,704
revenues
Reimbursed expenses 5,808 5,808
FF&E replacement reserves 60 60
Tax related adjustments 6 6
Other adjustments 36 36
Total special items before 206 206
taxes
Income tax expense on -48 -48
special items
Total special items after $ 158 $ 158
taxes
Net income, adjusted for $ 2,068 $ 2,082
special items
Diluted EPS, adjusted for
special $ 9.07 $ 9.13
items(1)
____________
(1) Does not include the effect of share repurchases made after September 30,
2026.
(2) See "—Net Income and Diluted EPS, Adjusted for Special Items" for details of
these special items.
14
HILTON WORLDWIDE HOLDINGS INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
OUTLOOK: NET INCOME AND ADJUSTED EBITDA
(in millions)
(unaudited)
Three Months Ending
December 31, 2026
──────────────────────────────────────────────────────────────────────────────
Low Case High Case
Net income $ 508 $ 522
Interest expense 197 197
Income tax expense 205 211
Depreciation and 57 57
amortization expenses
FF&E replacement reserves 20 20
Share-based compensation 39 39
expense
Amortization of contract
acquisition 17 17
costs
Other adjustments(1) 4 4
Adjusted EBITDA $ 1,047 $ 1,067
Year Ending
December 31, 2026
──────────────────────────────────────────────────────────────────────────────
Low Case High Case
Net income $ 1,909 $ 1,923
Interest expense 726 726
Income tax expense 724 730
Depreciation and 208 208
amortization expenses
Loss on foreign currency 19 19
transactions
FF&E replacement reserves 60 60
Share-based compensation 204 204
expense
Amortization of contract
acquisition 65 65
costs
Cost reimbursement -5,704 -5,704
revenues
Reimbursed expenses 5,808 5,808
Other adjustments(1) 41 41
Adjusted EBITDA $ 4,060 $ 4,080
____________
(1) See "—Net Income Margin and Adjusted EBITDA and Adjusted EBITDA Margin" for
details of these adjustments.
15
HILTON WORLDWIDE HOLDINGS INC.
DEFINITIONS
Trailing Twelve Month Financial Information
This press release includes certain unaudited financial information for the
trailing twelve months ("TTM") ended September 30, 2026, which is calculated as
the nine months ended September 30, 2026 plus the year ended December 31, 2025
less the nine months ended September 30, 2025. This presentation is not in
accordance with GAAP. However, we believe that this presentation provides useful
information to investors regarding our recent financial performance, and we view
this presentation of the four most recently completed fiscal quarters as a key
measurement period for investors to assess our historical results. In addition,
our management uses TTM information to evaluate our financial performance for
ongoing planning purposes.
Net Income (Loss), Adjusted for Special Items, and Diluted EPS, Adjusted for
Special Items
Net income (loss), adjusted for special items is calculated as net income (loss)
attributable to Hilton stockholders, as reported, plus total special items after
taxes. Net income (loss), adjusted for special items, and diluted earnings
(loss) per share ("EPS"), adjusted for special items, are not recognized terms
under GAAP and should not be considered as alternatives to net income (loss),
diluted EPS or other measures of financial performance or liquidity derived in
accordance with GAAP. In addition, our definition of net income (loss), adjusted
for special items, and diluted EPS, adjusted for special items, may not be
comparable to similarly titled measures of other companies.
Net income (loss), adjusted for special items, and diluted EPS, adjusted for
special items, are included to assist investors in performing meaningful
comparisons of past, present and future operating results and as a means of
highlighting the results of our ongoing operations.
Adjusted EBITDA, Net Income (Loss) Margin and Adjusted EBITDA Margin
Adjusted EBITDA is calculated as net income (loss), excluding interest expense,
a provision for income tax benefit (expense) and depreciation and amortization
expenses, as well as gains, losses, revenues and expenses earned or incurred in
connection with: (i) asset dispositions for both consolidated and unconsolidated
investments; (ii) foreign currency transactions; (iii) debt restructurings and
retirements; (iv) furniture, fixtures and equipment ("FF&E") replacement
reserves required under certain lease agreements; (v) share-based compensation;
(vi) reorganization, severance, relocation and other expenses; (vii) non-cash
impairment; (viii) amortization of contract acquisition costs; (ix) cost
reimbursement revenues and reimbursed expenses; and (x) other items.
Net income (loss) margin represents net income (loss) as a percentage of total
revenues. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of
total revenues, adjusted to exclude the amortization of contract acquisition
costs and cost reimbursement revenues.
We believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful
information to investors about us and our financial condition and results of
operations for the following reasons: (i) these measures are used by our
management team to evaluate our operating performance and make day-to-day
operating decisions and (ii) these measures are frequently used by securities
analysts, investors and other interested parties as a common performance measure
to compare results or estimate valuations across companies in our industry.
Additionally, these measures exclude certain items that can vary widely across
different industries and among competitors within our industry. For instance,
interest expense and income taxes are dependent on company specifics, including,
among other things, capital structure and operating jurisdictions, respectively,
and, therefore, could vary significantly across companies. Depreciation and
amortization expenses, as well as amortization of contract acquisition costs,
are dependent upon company policies, including the method of acquiring and
depreciating assets and the useful lives that are assigned to those depreciating
or amortizing assets for accounting purposes. We also exclude items such as: (i)
FF&E replacement reserves for leased hotels to be consistent with the treatment
of capital expenditures for property and equipment, where depreciation of such
capitalized assets is reported within depreciation and amortization expenses;
(ii) share-based compensation, as this could vary widely among companies due to
the different plans in place and the usage of them; and (iii) other items that
are not reflective of our operating performance, such as amounts related to debt
restructurings and debt retirements and reorganization and related severance
costs, to enhance period-over-period comparisons of our ongoing operations.
Further, Adjusted EBITDA excludes both cost reimbursement revenues and
reimbursed expenses as we contractually do not operate the related programs to
generate a profit and have contractual rights to adjust future collections to
recover prior period expenditures. The direct reimbursements from property
owners are billable and reimbursable as the costs are incurred and have no net
effect on net income (loss) in the reporting period. The indirect reimbursements
from property owners are typically billed and collected monthly, based on the
underlying hotel's sales or usage (e.g., gross room revenue or number of
reservations processed), while the associated costs are recognized as incurred
by Hilton, creating timing differences, with the net effect impacting net income
(loss) in the reporting period. These timing differences are due to our
discretion to spend in excess of revenues earned or less than revenues earned in
a single period to ensure that the programs are operated in the best long-term
interests of our property owners. However, over the life of the operation of
these programs, the expenses incurred related to the indirect reimbursements are
designed to equal the revenues earned from the indirect reimbursements over time
such that, in the long term, the programs will not earn a profit or generate a
loss and do not impact our economics, either
16
positively or negatively. Therefore, the net effect of our reimbursed revenues
and expenses is not used by management to evaluate our operating performance,
determine executive compensation or make other operating decisions, and we
exclude their impact when evaluating period over period performance results.
Adjusted EBITDA and Adjusted EBITDA margin are not recognized terms under GAAP
and should not be considered as alternatives, either in isolation or as a
substitute, for net income (loss), net income (loss) margin or other measures of
financial performance or liquidity, including cash flows, derived in accordance
with GAAP. Further, Adjusted EBITDA and Adjusted EBITDA margin have limitations
as analytical tools, may not be comparable to similarly titled measures of other
companies and should not be considered as other methods of analyzing our results
as reported under GAAP.
Net Debt, Long-Term Debt to Net Income (Loss) Ratio and Net Debt to Adjusted
EBITDA Ratio
Long-term debt to net income (loss) ratio is calculated as the ratio of Hilton's
long-term debt, including current maturities, to net income (loss). Net debt is
calculated as: long-term debt, including current maturities and excluding the
deduction for unamortized deferred financing costs and discounts; reduced by:
(i) cash and cash equivalents and (ii) restricted cash and cash equivalents. Net
debt to Adjusted EBITDA ratio is calculated as the ratio of Hilton's net debt to
Adjusted EBITDA. Net debt and net debt to Adjusted EBITDA ratio, presented
herein, are non-GAAP financial measures that the Company uses to evaluate its
financial leverage.
Net debt should not be considered as a substitute for debt presented in
accordance with GAAP, and net debt to Adjusted EBITDA ratio should not be
considered as an alternative to measures of financial condition derived in
accordance with GAAP. Net debt and net debt to Adjusted EBITDA ratio may not be
comparable to similarly titled measures of other companies. We believe net debt
and net debt to Adjusted EBITDA ratio provide useful information about our
indebtedness to investors as they are frequently used by securities analysts,
investors and other interested parties to compare the indebtedness between
companies.
Comparable Hotels
We define our comparable hotels as those that were active and operating in our
system for at least one full calendar year and were open January 1st of the
previous year. We exclude hotels that have undergone a change in brand or
ownership type or a large-scale capital project during the current or comparable
periods or otherwise do not have available comparable results, such as those
that have sustained substantial property damage or encountered business
interruption. We exclude strategic partner hotels from our comparable hotels. Of
the 9,494 hotels in our system as of September 30, 2026, 585 hotels were
strategic partner hotels and 6,679 hotels were classified as comparable hotels.
Our 2,230 non-comparable hotels as of September 30, 2026 included (i) 1,143
hotels that were added to our system after January 1, 2025 or that have
undergone a change in brand or ownership type during the current or comparable
periods reported and (ii) 1,087 hotels that were removed from the comparable
group for the current or comparable periods reported because they underwent or
are undergoing large-scale capital projects, sustained substantial property
damage, encountered business interruption or comparable results were otherwise
not available for them.
Occupancy
Occupancy represents the total number of room nights sold divided by the total
number of room nights available at a hotel or group of hotels for a given
period. Occupancy measures the utilization of available capacity at a hotel or
group of hotels. Management uses occupancy to gauge demand at a specific hotel
or group of hotels in a given period. Occupancy levels also help management
determine achievable Average Daily Rate ("ADR") pricing levels as demand for
hotel rooms increases or decreases.
ADR
ADR represents hotel room revenue divided by the total number of room nights
sold for a given period. ADR measures the average room price attained by a
hotel, and ADR trends provide useful information concerning the pricing
environment and the nature of the customer base of a hotel or group of hotels.
ADR is a commonly used performance measure in the industry, and we use ADR to
assess pricing levels that we are able to generate by type of customer, as
changes in rates charged to customers have different effects on overall revenues
and incremental profitability than changes in occupancy, as described above.
Revenue per Available Room ("RevPAR")
RevPAR is calculated by dividing hotel room revenue by the total number of room
nights available to guests for a given period. We consider RevPAR to be a
meaningful indicator of our performance as it provides a metric correlated to
two primary and key drivers of operations at a hotel or group of hotels, as
previously described: occupancy and ADR. RevPAR is also a useful indicator in
measuring performance over comparable periods for comparable hotels.
References to occupancy, ADR and RevPAR are presented on a comparable basis,
based on the comparable hotels as of September 30, 2026, and references to ADR
and RevPAR are presented on a currency neutral basis, unless otherwise noted. As
17
such, comparisons of these hotel operating statistics for the three and nine
months ended September 30, 2026 and 2025 use foreign currency exchange rates for
the three and nine months ended September 30, 2026, respectively.
Pipeline
Rooms under construction include rooms for hotels under construction or
operating hotels that are in the process of conversion to our system.
18