Hilton beats profit expectations, raises annual forecast

Hilton Worldwide Holdings Inc. (HLT) reported strong financial results for the first quarter of this year in late April 2026, beating analysts' profit expectations and raising full-year forecasts, despite a slight shortfall in overall revenue.

"We delivered excellent results for the quarter with RevPAR growth across all chains, brands and customer segments. The results demonstrate a continuation of the strengthening demand trends we have seen since late 2025, supported by macroeconomic stimulus most evident in the U.S. On the development front, we delivered the highest growth in our history and remain confident in our ability to deliver net unit growth of 6,0 percent to 7,0 percent in 2026 and beyond.", he stated Christopher J. Nassetta, chairman and CEO of Hilton.

For the three months ended March 31, 2026, comparable systemwide RevPAR increased 3,6 percent compared to the same period in 2025 due to increases in both occupancy and ADR. Management and franchise fee revenue increased 10,4 percent compared to the same period in 2025.

Diluted EPS was $1,66 and diluted EPS, adjusted for special items, was $2,01, compared to $1,23 and $1,72, respectively. Net income and adjusted EBITDA were $383 million and $901 million, respectively, for the quarter ended March 31, 2026, compared to $300 million and $795 million, respectively, for the same period last year.

Development

In the first quarter of 2026, 131 hotels opened with a total of 16.300 rooms, resulting in 10.900 net additional rooms.

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Notable openings included The Monarch San Antonio, Curio Collection by Hilton, which defined a new chapter in the city’s hotel landscape, and Motto by Hilton Recife Antigo, which marked the lifestyle brand’s debut in Brazil. In April, Waldorf Astoria Rabat Sale opened, the first Waldorf Astoria in Morocco.

During the quarter, Motto by Hilton Sydney City Centre was signed, marking the brand's debut in Australia, and two LXR Hotels & Resorts in Japan, Meguro Gajoen Tokyo and Hakone, Gora, bringing the total LXR Hotels & Resorts portfolio to over 20 hotels.

26.200 rooms were added to the development portfolio, and as of March 31, 2026, the development portfolio totaled 3.768 hotels, representing 527.000 rooms in 129 countries and territories, including 26 countries and territories where they had no existing hotels. Additionally, of the rooms in development, nearly half were under construction and more than half were located outside the US.

Balance sheet and liquidity

As of March 31, 2026, there was $12,5 billion of debt outstanding, excluding a deduction for unamortized deferred financing costs and discount, with a weighted average interest rate of 5,00 percent.

Excluding all finance lease obligations, they had $12,1 billion of outstanding debt with a weighted average interest rate of 5,01 percent and no significant indebtedness maturing prior to April 2027. They believe, however, that they have sufficient sources of liquidity and access to the debt markets to address the repayment of all indebtedness maturing on or before their respective maturity dates.

In March 2026, they amended the credit agreement governing the senior secured revolving credit facility (the “Revolving Credit Facility”) to extend the expected maturity date and change the interest rate on the outstanding amounts to the secured overnight funding rate plus 1,00%.

In connection with these amendments, they incurred approximately $5 million in debt issuance costs. As of March 31, 2026, there were no outstanding borrowings under the Revolving Credit Facility, which had available borrowing capacity of $1.894 million after taking into account $106 million in outstanding letters of credit.

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In April 2026, $265 million was borrowed under the Revolving Credit Facility for General Corporate Purposes and $115 million of outstanding debt was subsequently repaid. Total cash and cash equivalents were $619 million as of March 31, 2026, including $55 million of restricted cash and cash equivalents.

A quarterly cash dividend of $0,15 per share of common stock was paid in March 2026, for a total payment of $35 million for the quarter. In April 2026, the board of directors approved a regular quarterly cash dividend of $0,15 per share of common stock payable on June 30, 2026 to holders of common stock as of the close of business on May 22, 2026.

During the quarters ended March 31, 2026, 2,7 million shares of Hilton common stock were repurchased at an average price per share of $301,71, for a total of $825 million, returning $860 million in capital to shareholders, including dividends.

The number of shares outstanding as of April 23, 2026 was 227,6 million. Total return of capital from the beginning of the year to April, including dividends, was USD 1.084 million.

Key financial results of the first quarter:

• Adjusted earnings per share (EPS): \(\$2,01\), which is higher than the expected \(\$1,96 - \$1,98\) and significantly higher than \(\$1,72\) in Q1 2025.
• Net income: $383 million, up from $300 million in the same period last year. Total revenue: $2,94 billion, up 9% year-over-year but slightly below the expected $2,95 billion.
• Adjusted EBITDA: $\(901\) million, up 13% from Q1 2025.
• RevPAR (Revenue per Available Room): Increased by 3,6% (on a currency neutral basis) compared to 2025.
• Return to shareholders: More than $860 million was returned through share repurchases and dividends, with a return plan of approximately $3,5 billion for the full year.

Business and growth:

• Development: 131 hotels (16.300 rooms) have opened, and the pipeline (development project) now includes 527.000 rooms, representing a growth of 5% compared to March 2025.
• New brands: In March 2026, a new brand "Select by Hilton" was announced in collaboration with YOTEL.
• Reservations: Growth in room occupancy and revenue was recorded, especially in the segment of budget and mid-range hotels.

Forecasts:

For the full year 2026, Hilton raised its adjusted EBITDA forecast to $\(4,02 - 4,06\) billion. RevPAR is expected to grow between 2% and 3% for the full year.

Despite the strong results, shares fell slightly in pre-market trading after the announcement, attributed to investor concerns over a slight revenue shortfall and broader market conditions.

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Source: Hilton