Hilton Reports First Quarter Results; Raises Full Year Outlook

Hilton Reports First Quarter Results; Raises Full Year Outlook MCLEAN, Va.--( BUSINESS WIRE)--Hilton Worldwide Holdings Inc. ("Hilton," "the Company," "we," "us" or "our") (NYSE: HLT) today reported its first quarter 2026 results. Highlights include:

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We delivered great top and bottom-line results for the quarter with RevPAR growth across all chain-scales and brands and customer segments. The results demonstrate a continuation of strengthening demand trends we’ve seen since late 2025 that are supported by macroeconomic tailwinds most evident in the U.S. On the development side, we achieved the largest pipeline in our history, and we remain confident in our ability to deliver net unit growth of 6.0 percent to 7.0 percent in 2026 and beyond.”

For the three months ended March 31, 2026, system-wide comparable RevPAR increased 3.6 percent compared to the same period in 2025 due to increases in both occupancy and ADR. Management and franchise fee revenues increased 10.4 percent compared to the same period in 2025.

For the three months ended March 31, 2026, diluted EPS was $1.66 and diluted EPS, adjusted for special items, was $2.01, compared to $1.23 and $1.72, respectively, for the three months ended March 31, 2025. Net income and Adjusted EBITDA were $383 million and $901 million, respectively, for the three months ended March 31, 2026, compared to $300 million and $795 million, respectively, for the three months ended March 31, 2025.

Development

In the first quarter of 2026, we opened 131 hotels, totaling 16,300 rooms, resulting in 10,900 net room additions. Notable openings included The Monarch San Antonio, Curio Collection by Hilton, defining a new chapter for the city's hotel landscape, and the Motto by Hilton Recife Antigo, marking the debut of the lifestyle brand in Brazil. In April, we opened Waldorf Astoria Rabat Sale, the first Waldorf Astoria in Morocco. During the quarter, we signed the Motto by Hilton Sydney City Centre, representing the brands' debut in Australia, and two LXR Hotels and Resorts in Japan, the Meguro Gajoen Tokyo and Hakone, Gora, bringing our total LXR Hotels and Resorts pipeline to over 20 hotels.

We added 26,200 rooms to the development pipeline during the first quarter, and, as of March 31, 2026, our development pipeline totaled 3,768 hotels representing 527,000 rooms throughout 129 countries and territories, including 26 countries and territories where we had no existing hotels. Additionally, of the rooms in the development pipeline, almost half were under construction and more than half were located outside of the U.S.

Balance Sheet and Liquidity

As of March 31, 2026, we had $12.5 billion of debt outstanding, excluding the deduction for unamortized deferred financing costs and discount, with a weighted average interest rate of 5.00 percent. Excluding all finance lease liabilities, we had $12.1 billion of debt outstanding with a weighted average interest rate of 5.01 percent and no material indebtedness that matures prior to April 2027. We believe that we have sufficient sources of liquidity and access to debt markets to address the repayment of all indebtedness that becomes due at or prior to the respective maturity dates.

In March 2026, we amended the credit agreement governing our senior secured revolving credit facility (the "Revolving Credit Facility") to extend the expected maturity date and reprice the rate on amounts outstanding to the secured overnight financing rate plus 1.00%. In connection with this amendment, we incurred approximately $5 million of debt issuance costs. As of March 31, 2026, no borrowings were outstanding under our Revolving Credit Facility, which had an available borrowing capacity of $1,894 million after considering $106 million of letters of credit outstanding. In April 2026, we borrowed $265 million under the Revolving Credit Facility for general corporate purposes and subsequently repaid $115 million of the outstanding indebtedness. Total cash and cash equivalents were $619 million as of March 31, 2026, including $55 million of restricted cash and cash equivalents.

In March 2026, we paid a quarterly cash dividend of $0.15 per share of common stock, for a total payment of $35 million for the quarter. In April 2026, our board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on June 30, 2026 to holders of record of our common stock as of the close of business on May 22, 2026.

During the three months ended March 31, 2026, we repurchased 2.7 million shares of Hilton common stock at an average price per share of $301.71, for a total of $825 million, returning $860 million of capital to shareholders, including dividends.

The number of shares outstanding as of April 23, 2026 was 227.6 million. Total capital return year to date through April, including dividends, was $1,084 million.

Outlook

Share-based metrics in Hilton's outlook include actual share repurchases through the first quarter but do not include the effects of potential share repurchases thereafter.

Full Year 2026

Second Quarter 2026

Conference Call

Hilton will host a conference call to discuss first quarter of 2026 results on April 28, 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 9497198. 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 3095590.

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 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 review 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 27 world-class brands comprising more than 9,200 properties and over 1.3 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 more than 250 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.

HILTON WORLDWIDE HOLDINGS INC.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

Condensed Consolidated Statements of Operations

Comparable and Currency Neutral System-Wide Hotel Operating Statistics

Property Summary

Capital Expenditures and Contract Acquisition Costs

Reconciliations of Non-GAAP Financial Measures

Definitions

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

Three Months Ended

March 31,

2026

2025

Revenues

Franchise and licensing fees

696

625

Base and other management fees

Incentive management fees

Ownership

249

234

Other revenues

1,182

1,065

Cost reimbursement revenues

1,755

1,630

Total revenues

2,937

2,695

Expenses

Ownership

235

239

Depreciation and amortization

General and administrative

103

Other expenses

410

400

Reimbursed expenses

1,849

1,759

Total expenses

2,259

2,159

Operating income

678

536

Interest expense

(162

)

(145

)

Gain (loss) on foreign currency transactions

)

Other non-operating income, net

Income before income taxes

518

410

Income tax expense

(135

)

(110

)

Net income

383

300

Net loss attributable to redeemable and nonredeemable noncontrolling interests

—

Net income attributable to Hilton stockholders

385

300

Weighted average shares outstanding:

Basic

229

240

Diluted

232

243

Earnings per share:

Basic

1.68

1.25

Diluted

1.66

1.23

Cash dividends declared per share

0.15

HILTON WORLDWIDE HOLDINGS INC.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY REGION, BRAND AND SEGMENT

(unaudited)

Three Months Ended March 31,

Occupancy

ADR

RevPAR

2026

vs. 2025

2026

vs. 2025

2026

vs. 2025

System-wide

67.4

1.4

pts.

157.14

1.5

105.97

3.6

Region

U.S.

68.7

1.3

pts.

168.08

1.4

115.40

3.4

Americas (excluding U.S.)

63.4

1.1

157.35

2.7

99.81

4.4

Europe

66.1

2.3

150.17

3.2

99.22

6.9

Middle East & Africa

64.3

(4.1

)

220.29

4.6

141.62

(1.7

)

Asia Pacific

64.8

2.2

101.22

1.1

65.58

4.7

Brand (1)

Waldorf Astoria Hotels & Resorts

66.2

1.1

pts.

495.56

(0.8

328.09

0.8

Conrad Hotels & Resorts

72.6

0.5

299.29

1.6

217.41

2.3

LXR Hotels & Resorts

67.8

9.3

523.95

3.8

355.47

20.2

Canopy by Hilton

69.2

2.8

225.16

2.0

155.84

6.3

Hilton Hotels & Resorts

67.1

1.6

195.78

1.7

131.33

4.2

Curio Collection by Hilton

68.2

2.3

241.32

2.4

164.67

6.0

Graduate by Hilton

58.7

1.9

199.55

0.5

117.16

3.9

DoubleTree by Hilton

64.7

1.5

144.46

1.8

93.45

4.1

Tapestry Collection by Hilton

63.8

3.9

180.98

2.6

115.53

9.2

Embassy Suites by Hilton

71.7

0.9

185.90

1.2

133.20

2.5

Motto by Hilton

74.2

0.9

170.76

(0.7

)

126.69

0.5

Hilton Garden Inn

65.3

0.8

136.54

0.9

89.22

2.2

Hampton by Hilton

66.2

0.9

123.47

1.2

81.75

2.6

Tru by Hilton

66.5

1.0

125.05

2.1

83.18

3.7

Homewood Suites by Hilton

76.1

1.2

155.11

0.8

117.97

2.4

Home2 Suites by Hilton

73.2

2.5

133.88

1.4

98.05

5.0

Segment

Management and franchise

67.4

1.4

pts.

156.69

1.5

105.62

3.6

Ownership (2)

69.8

4.4

198.97

(0.5

)

138.96

6.2

____________

(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.

HILTON WORLDWIDE HOLDINGS INC.

PROPERTY SUMMARY

As of March 31, 2026

Ownership (1)

Managed

Franchised / Licensed

Total

Properties

Rooms

Properties

Rooms

Properties

Rooms

Properties

Rooms

Waldorf Astoria Hotels & Resorts

463

9,244

—

9,707

Conrad Hotels & Resorts

164

14,121

2,779

17,064

LXR Hotels & Resorts

—

1,155

1,670

2,825

NoMad

—

Signia by Hilton

—

3,293

—

3,293

Canopy by Hilton

—

2,393

6,103

8,496

Hilton Hotels & Resorts

14,660

309

130,098

268

83,269

620

228,027

Curio Collection by Hilton

—

7,923

166

30,809

198

38,732

Graduate by Hilton

—

5,881

DoubleTree by Hilton

—

169

45,361

548

114,916

717

160,277

Tapestry Collection by Hilton

—

2,971

188

21,975

197

24,946

Embassy Suites by Hilton

—

9,498

233

52,613

269

62,111

Tempo by Hilton

—

661

924

1,585

Outset Collection by Hilton

—

268

Motto by Hilton

—

2,393

Hilton Garden Inn

—

133

26,166

1,010

142,629

1,143

168,795

Hampton by Hilton

—

8,355

3,154

353,159

3,206

361,514

Tru by Hilton

—

1,565

333

32,275

347

33,840

Spark by Hilton

—

242

21,423

242

21,423

Homewood Suites by Hilton

—

928

552

63,380

559

64,308

Home2 Suites by Hilton

—

210

882

97,267

884

97,477

LivSmart Studios by Hilton

—

226

Strategic partner hotels (2)

—

533

24,647

533

24,647

Other (3)

—

803

3,105

3,908

Total hotels

15,287

875

264,836

8,225

1,061,711

9,146

1,341,834

Hilton Grand Vacations (4)

—

114

20,444

114

20,444

Total system

15,287

875

264,836

8,339

1,082,155

9,260

1,362,278

Ownership (1)

Managed

Franchised / Licensed

Total

Properties

Rooms

Properties

Rooms

Properties

Rooms

Properties

Rooms

U.S.

—

177

79,119

6,070

775,533

6,247

854,652

Americas (excluding U.S.)

405

17,940

440

56,728

509

75,073

Europe

10,662

110

26,692

773

92,717

920

130,071

Middle East & Africa

1,376

118

34,028

6,835

167

42,239

Asia Pacific

2,844

402

107,057

896

129,898

1,303

239,799

Total hotels

15,287

875

264,836

8,225

1,061,711

9,146

1,341,834

Hilton Grand Vacations (4)

—

114

20,444

114

20,444

Total system

15,287

875

264,836

8,339

1,082,155

9,260

1,362,278

____________

(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.

HILTON WORLDWIDE HOLDINGS INC.

CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS

(dollars in millions)

(unaudited)

Three Months Ended

March 31,

Increase / (Decrease)

2026

2025

Capital expenditures for property and equipment (1)

(10

)

(52.6

)

Capitalized software costs (2)

4.8

Total capital expenditures

)

(22.5

)

Contract acquisition costs, net of refunds

)

(13.3

)

Total capital expenditures and contract acquisition costs

(13

)

(18.6

)

____________

(1)

Represents expenditures for hotels, corporate and other property and equipment, which include amounts reimbursed by third parties of $6 million and $12 million for the three months ended March 31, 2026 and 2025, respectively. Excludes expenditures for FF&E replacement reserves of $10 million and $13 million for the three months ended March 31, 2026 and 2025, respectively.

(2)

Includes $20 million of expenditures that were reimbursed to us by third parties for both the three months ended March 31, 2026 and 2025.

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 Months Ended

March 31,

2026

2025

Net income attributable to Hilton stockholders, as reported

385

300

Diluted EPS, as reported

1.66

1.23

Special items:

Cost reimbursement revenues (1)

(1,755

)

(1,630

)

Reimbursed expenses (1)

1,849

1,759

FF&E replacement reserves

Tax-related adjustments (2)

Other adjustments (3)

Total special items before taxes

107

154

Income tax expense on special items

(26

)

(36

)

Total special items after taxes

118

Net income, adjusted for special items

466

418

Diluted EPS, adjusted for special items

2.01

1.72

____________

(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 includes income tax expenses (benefits) related to the enactment of new tax laws and certain changes in unrecognized tax expenses (benefits).

(3)

Amount for the three months ended March 31, 2025 includes restructuring costs related to one of our leased hotels, which were recognized in ownership expenses. Amounts for both 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, which were recognized in other non-operating income, 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.

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 Months Ended

March 31,

2026

2025

Net income

383

300

Interest expense

162

145

Income tax expense

135

110

Depreciation and amortization expenses

Loss (gain) on foreign currency transactions

)

FF&E replacement reserves

Share-based compensation expense

Amortization of contract acquisition costs

Cost reimbursement revenues (1)

(1,755

)

(1,630

)

Reimbursed expenses (1)

1,849

1,759

Other adjustments (2)

Adjusted EBITDA

901

795

____________

(1)

(2)

Amount for the three months ended March 31, 2025 includes restructuring costs related to one of our leased hotels. Amounts for both 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 Months Ended

March 31,

2026

2025

Total revenues, as reported

2,937

2,695

Add: amortization of contract acquisition costs

Less: cost reimbursement revenues (1)

(1,755

)

(1,630

)

Total revenues, as adjusted

1,197

1,079

Net income

383

300

Net income margin

13.0

11.1

Adjusted EBITDA

901

795

Adjusted EBITDA margin

75.3

73.7

____________

(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.

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)

March 31,

December 31,

2026

2025

Long-term debt, including current maturities

12,359

12,363

Add: unamortized deferred financing costs and discount

Long-term debt, including current maturities and excluding the deduction for unamortized deferred financing costs and discount

12,451

12,459

Less: cash and cash equivalents

(564

)

(918

)

Less: restricted cash and cash equivalents

(55

)

(52

)

Net debt

11,832

11,489

Three Months Ended

Year Ended

TTM Ended

March 31,

December 31,

March 31,

2026

2025

2026

Net income

383

300

1,461

1,544

Interest expense

162

145

620

637

Income tax expense

135

110

611

636

Depreciation and amortization expenses

177

186

Loss (gain) on foreign currency transactions

)

FF&E replacement reserves

Share-based compensation expense

170

179

Amortization of contract acquisition costs

Cost reimbursement revenues (1)

(1,755

)

(1,630

)

(7,085

)

(7,210

)

Reimbursed expenses (1)

1,849

1,759

7,550

7,640

Other adjustments (2)

Adjusted EBITDA

901

795

3,725

3,831

Long-term debt

12,359

Long-term debt to net income ratio

8.0

Net debt

11,832

Net debt to Adjusted EBITDA ratio

3.1

____________

(1)

(2)

Amounts for the three months ended March 31, 2025 and year ended December 31, 2025 include restructuring costs related to one of our leased hotels. Amount for the year ended December 31, 2025 also includes expected future credit losses on financing receivables and 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.

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

June 30, 2026

Low Case

High Case

Net income attributable to Hilton stockholders

491

505

Diluted EPS (1)

2.13

2.19

Special items (2):

FF&E replacement reserves

Other adjustments

Total special items before taxes

Income tax expense on special items

)

Total special items after taxes

Net income, adjusted for special items

503

517

Diluted EPS, adjusted for special items (1)

2.18

2.24

Year Ending

December 31, 2026

Low Case

High Case

Net income attributable to Hilton stockholders

1,909

1,937

Diluted EPS (1)

8.28

8.40

Special items (2):

Cost reimbursement revenues

(1,755

)

(1,755

)

Reimbursed expenses

1,849

FF&E replacement reserves

Tax related adjustments

Other adjustments

Total special items before taxes

156

Income tax expense on special items

(37

)

(37

)

Total special items after taxes

119

Net income, adjusted for special items

2,028

2,056

Diluted EPS, adjusted for special items (1)

8.79

8.91

____________

(1)

Does not include the effect of share repurchases made after March 31, 2026.

(2)

See "—Net Income and Diluted EPS, Adjusted for Special Items" for details of these special items.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

OUTLOOK: NET INCOME AND ADJUSTED EBITDA

(in millions)

(unaudited)

Three Months Ending

June 30, 2026

Low Case

High Case

Net income

491

505

Interest expense

179

Income tax expense

205

211

Depreciation and amortization expenses

FF&E replacement reserves

Share-based compensation expense

Amortization of contract acquisition costs

Other adjustments (1)

Adjusted EBITDA

1,015

1,035

Year Ending

December 31, 2026

Low Case

High Case

Net income

1,909

1,937

Interest expense

723

Income tax expense

769

781

Depreciation and amortization expenses

203

Loss on foreign currency transactions

FF&E replacement reserves

Share-based compensation expense

191

Amortization of contract acquisition costs

Cost reimbursement revenues

(1,755

)

(1,755

)

Reimbursed expenses

1,849

Other adjustments (1)

Adjusted EBITDA

4,020

4,060

____________

(1)

See "—Net Income Margin and Adjusted EBITDA and Adjusted EBITDA Margin" for details of these adjustments.

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 March 31, 2026, which is calculated as the three months ended March 31, 2026 plus the year ended December 31, 2025 less the three months ended March 31, 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 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 to 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 9,146 hotels in our system as of March 31, 2026, 533 hotels were strategic partner hotels and 6,966 hotels were classified as comparable hotels. Our 1,647 non-comparable hotels as of March 31, 2026 included (i) 814 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) 833 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 March 31, 2026, and references to ADR and RevPAR are presented on a currency neutral basis, unless otherwise noted. As such, comparisons of these hotel operating statistics for the three months ended March 31, 2026 and 2025 use foreign currency exchange rates for the three months ended March 31, 2026.

Pipeline

Rooms under construction include rooms for hotels under construction or operating hotels that are in the process of conversion to our system.