Adjustments for Non-Cash Items [USD, M]

Stock-Based Compensation [USD, M]

Changes in Working Capital [USD, M]

Capital Expenditures (CapEx) [USD, M]

Proceeds from Debt [USD, M]

Repayments of Debt [USD, M]

Share Repurchases [USD, M]

Dividend Payments [USD, M]

Net Change in Cash [USD, M]

5f3824132ff1ce37bd55d1c7570694244a02698072a078554059ce40107fb8e8

| Metric / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| RevPAR Increase (%) | 24.8% **[HLT_3227431_3]** | 2.0% **[0001585689-24-000099_q12024earningsrelease.htm:0]** | 12.1% **[0001585689-23-000152_q22023earningsrelease.htm:0]** **[0001585689-23-000156_hlt-20230630.htm:23]** | 6.8% **[HLT_3361842_4]** | 5.7% **[HLT_3372187_3]** **[0001585689-24-000023_q42023earningsrelease.htm:0]** **[0001585689-24-000023_q42023earningsrelease.htm:1]** | N/A | 3.5% **[0001585689-24-000160_q22024earningsrelease.htm:0]** | 1.4% **[0001585689-24-000191_hlt-20240930.htm:25]** |
| Management Contract Intangible Assets ($ million) | $887 **[0001585689-23-000036_hlt-20221231.htm:133]** | N/A | $958 **[0001585689-23-000156_hlt-20230630.htm:1]** | $986 **[0001585689-23-000193_hlt-20230930.htm:1]** | $1,064 **[0001585689-24-000027_hlt-20231231.htm:135]** | N/A | $11 **[0001585689-24-000162_hlt-20240630.htm:7]** | $11 **[0001585689-24-000191_hlt-20240930.htm:7]** |
| Number of Properties | 7,165 **[0001585689-23-000036_hlt-20221231.htm:6]** | 7,215 **[0001585689-23-000100_hlt-20230331.htm:15]** | 7,295 **[0001585689-23-000156_hlt-20230630.htm:18]** | 7,399 **[0001585689-23-000193_hlt-20230930.htm:19]** | 7,530 **[0001585689-24-000027_hlt-20231231.htm:6]** | 7,626 **[0001585689-24-000101_hlt-20240331.htm:15]** | 7,780 **[0001585689-24-000162_hlt-20240630.htm:20]** | 8,301 **[0001585689-24-000191_hlt-20240930.htm:20]** |
| Number of Rooms | 1,127,430 **[0001585689-23-000036_hlt-20221231.htm:6]** **[0001585689-23-000036_hlt-20221231.htm:70]** **[0001585689-23-000036_hlt-20221231.htm:111]** | 1,133,277 **[0001585689-23-000100_hlt-20230331.htm:15]** | 1,144,849 **[0001585689-23-000156_hlt-20230630.htm:18]** | 1,159,785 **[0001585689-23-000193_hlt-20230930.htm:19]** | 1,182,937 **[0001585689-24-000027_hlt-20231231.htm:6]** | 1,197,329 **[0001585689-24-000099_q12024earningsrelease.htm:6]** **[0001585689-24-000101_hlt-20240331.htm:15]** | 1,216,308 **[0001585689-24-000162_hlt-20240630.htm:20]** | 1,250,506 **[0001585689-24-000191_hlt-20240930.htm:20]** |
| Number of Countries and Territories | 123 **[0001585689-23-000036_hlt-20221231.htm:6]** **[0001585689-23-000036_hlt-20221231.htm:70]** | 122 **[0001585689-23-000100_hlt-20230331.htm:15]** | 123 **[0001585689-23-000156_hlt-20230630.htm:18]** **[0001585689-23-000152_q22023earningsrelease.htm:5]** | 124 **[0001585689-23-000193_hlt-20230930.htm:19]** | 126 **[0001585689-24-000027_hlt-20231231.htm:69]** **[0001585689-24-000027_hlt-20231231.htm:6]** | 126 **[0001585689-24-000099_q12024earningsrelease.htm:4]** **[0001585689-24-000103_hlts-3asrapril2024.htm:2]** | 126 **[0001585689-24-000162_hlt-20240630.htm:20]** | 138 **[0001585689-24-000191_hlt-20240930.htm:20]** |
| Hilton Honors Members (million) | 152 **[0001585689-23-000036_hlt-20221231.htm:6]** | 158 **[0001585689-23-000100_hlt-20230331.htm:15]** | 166 **[0001585689-23-000156_hlt-20230630.htm:18]** | 173 **[0001585689-23-000193_hlt-20230930.htm:19]** **[0001585689-23-000191_q32023earningsrelease.htm:4]** | 180 **[0001585689-24-000027_hlt-20231231.htm:6]** | 188 **[0001585689-24-000101_hlt-20240331.htm:15]** | 195 **[0001585689-24-000162_hlt-20240630.htm:20]** | 203 **[0001585689-24-000191_hlt-20240930.htm:20]** |
| Deferred Revenues - Honors ($ million) | $631 **[0001585689-23-000036_hlt-20221231.htm:131]** | $644 **[0001585689-23-000100_hlt-20230331.htm:4]** | $689 **[0001585689-23-000156_hlt-20230630.htm:4]** | $761 **[0001585689-23-000193_hlt-20230930.htm:4]** | $769 **[0001585689-24-000027_hlt-20231231.htm:133]** | $800 **[0001585689-24-000101_hlt-20240331.htm:4]** | $848 **[0001585689-24-000162_hlt-20240630.htm:7]** | $916 **[0001585689-24-000191_hlt-20240930.htm:8]** |
| Deferred Revenues - Fees ($ million) | $674 **[0001585689-23-000036_hlt-20221231.htm:131]** | $684 **[0001585689-23-000100_hlt-20230331.htm:4]** | $697 **[0001585689-23-000156_hlt-20230630.htm:4]** | $713 **[0001585689-23-000193_hlt-20230930.htm:4]** | $733 **[0001585689-24-000027_hlt-20231231.htm:133]** | $744 **[0001585689-24-000101_hlt-20240331.htm:4]** | $755 **[0001585689-24-000162_hlt-20240630.htm:7]** | $768 **[0001585689-24-000191_hlt-20240930.htm:8]** |
| Deferred Revenues - Other ($ million) | $26 **[0001585689-23-000036_hlt-20221231.htm:131]** | $23 **[0001585689-23-000100_hlt-20230331.htm:4]** | $20 **[0001585689-23-000156_hlt-20230630.htm:4]** | $19 **[0001585689-23-000193_hlt-20230930.htm:4]** | $19 **[0001585689-24-000027_hlt-20231231.htm:133]** | $18 **[0001585689-24-000101_hlt-20240331.htm:4]** | $18 **[0001585689-24-000162_hlt-20240630.htm:7]** | $17 **[0001585689-24-000191_hlt-20240930.htm:8]** |

303f29dd2fc05db26cb6cc3ee9df1126108cbe0808b2538bc99a427e1477673d

e2a191a668c45eb30dca4b953a1657e3c89c631fbf0b4cabc82a93914927c17b

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Management and Franchise Segment | N/A     | **667**  **[0001585689-23-000100_hlt-20230331.htm:12]**  | **791**  **[0001585689-23-000156_hlt-20230630.htm:14]**  | **804**  **[0001585689-23-000193_hlt-20230930.htm:15]**  | N/A     | **765**  **[0001585689-24-000101_hlt-20240331.htm:12]**  | **870**  **[0001585689-24-000162_hlt-20240630.htm:17]**  | **873**  **[0001585689-24-000191_hlt-20240930.htm:17]**  |
| Ownership Segment    | N/A     | **248**  **[0001585689-23-000100_hlt-20230331.htm:12]**  | **341**  **[0001585689-23-000156_hlt-20230630.htm:14]**  | **335**  **[0001585689-23-000193_hlt-20230930.htm:15]**  | N/A     | **255**  **[0001585689-24-000101_hlt-20240331.htm:12]**  | **337**  **[0001585689-24-000162_hlt-20240630.htm:17]**  | **330**  **[0001585689-24-000191_hlt-20240930.htm:17]**  |
| Total Segment Revenues | N/A   | **915**  **[0001585689-23-000100_hlt-20230331.htm:12]**  | **1,132**  **[0001585689-23-000156_hlt-20230630.htm:14]**  | **1,139**  **[0001585689-23-000193_hlt-20230930.htm:15]**  | N/A   | **1,020**  **[0001585689-24-000101_hlt-20240331.htm:12]**  | **1,207**  **[0001585689-24-000162_hlt-20240630.htm:17]**  | **1,203**  **[0001585689-24-000191_hlt-20240930.htm:17]**  |

37ef71c998fc982229e50b5bb731148b218231e7cfeb7b499e93d40003f1b4dd

Hilton Worldwide Holdings Inc. is a leading global hospitality company with a diverse portfolio of 24 world-class brands, operating over 8,300 properties and more than 1.25 million rooms across 138 countries and territories **[0001585689-24-000189_q32024earningsrelease.htm:5]**. The company primarily engages in managing and franchising hotels, as well as owning and leasing hotel properties. Hilton generates revenue through management and franchise fees, licensing fees, and sales from its owned and leased hotels **[0001585689-24-000191_hlt-20240930.htm:20]** **[0001585689-24-000191_hlt-20240930.htm:16]** **[0001585689-24-000027_hlt-20231231.htm:149]**. The company is focused on expanding its global hotel network and enhancing guest experiences through technology and its loyalty program, Hilton Honors, which boasts over 200 million members **[0001585689-24-000189_q32024earningsrelease.htm:5]**.

1. **Management and Franchise** - Manages hotels for third-party owners and licenses Hilton's intellectual property to franchised hotels, generating revenue from management and franchise fees, as well as licensing fees from strategic partners **[0001585689-24-000191_hlt-20240930.htm:20]** **[0001585689-24-000191_hlt-20240930.htm:16]** **[0001585689-24-000027_hlt-20231231.htm:149]**.
2. **Ownership** - Operates consolidated owned and leased hotels, deriving revenue from nightly hotel room sales, food and beverage sales, and other services **[0001585689-24-000191_hlt-20240930.htm:20]** **[0001585689-24-000191_hlt-20240930.htm:16]** **[0001585689-24-000027_hlt-20231231.htm:149]**.

a0e40a57987cc94346de7a31a4e5272766b1c4b1b59a2d99c1225ccc964f102a

1. Given that RevPAR growth came in below your guidance due to softer ramp in September and ongoing macro uncertainties, how confident are you in achieving your 2025 EBITDA target without exceeding the 1%-2% RevPAR growth range many in the industry are forecasting?

2. You mentioned that conversions accounted for a significant portion of your net unit growth; can you elaborate on the sustainability of this trend and how you plan to maintain such high levels of conversions in the face of increasing competition?

3. With over 80% of your pipeline under construction being outside the U.S., particularly in markets like China that have faced economic slowdowns and real estate issues, what risks do you see to your net unit growth targets if these markets don't recover as expected?

4. As you expand aggressively internationally, how are you adapting your brands to different markets, and what challenges have you faced in maintaining brand standards and performance across diverse regions?

5. Regarding your recent tuck-in brand acquisitions like Graduate Hotels and the partnership with Small Luxury Hotels of the World, can you quantify the initial impact on earnings and discuss how these investments align with your ROI targets compared to developing brands internally?

d92c1ffe99002621cd992a7b6bcd7bf0c4d5b6f9a93e829db279c12e74db3151

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

c9ddfabdd35b060de74c5a096925e4761a9c452939909b162de2ceec5358b691

0be6d00155e8546e19a2332b27dc4ce66b1da278376bfecddb05a5b886956e68

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  - **Q4 2024 Guidance**:
    - **System-wide RevPAR Growth**: 1% to 2%
    - **Adjusted EBITDA**: $804 million to $834 million
    - **Diluted EPS Adjusted for Special Items**: $1.57 to $1.67
  - **FY 2024 Guidance**:
    - **RevPAR Growth**: 2% to 2.5%
    - **Adjusted EBITDA**: $3.375 billion to $3.405 billion
    - **Diluted EPS Adjusted for Special Items**: $6.93 to $7.03
    - **Net Unit Growth**: 7% to 7.5%
    - **Capital Return**: Approximately $3 billion to shareholders  **[HLT_3403372_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  - **Q3 2024 Guidance**:
    - **System-wide RevPAR Growth**: 2% to 3%
    - **Adjusted EBITDA**: $875 million to $890 million
    - **Diluted EPS Adjusted for Special Items**: $1.80 to $1.85
  - **FY 2024 Guidance**:
    - **RevPAR Growth**: 2% to 3%
    - **Adjusted EBITDA**: $3.375 billion to $3.405 billion
    - **Diluted EPS Adjusted for Special Items**: $6.93 to $7.03
    - **Net Unit Growth**: 7% to 7.5%
    - **Capital Return**: Approximately $3 billion to shareholders  **[HLT_3396987_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  - **Q2 2024 Guidance**:
    - **System-wide RevPAR Growth**: 2% to 4%
    - **Adjusted EBITDA**: $890 million to $910 million
    - **Diluted EPS Adjusted for Special Items**: $1.80 to $1.86
  - **FY 2024 Guidance**:
    - **RevPAR Growth**: 2% to 4%
    - **Adjusted EBITDA**: $3.375 billion to $3.425 billion
    - **Diluted EPS Adjusted for Special Items**: $6.89 to $7.03
    - **Net Unit Growth**: 6% to 6.5% (excluding planned acquisition of Graduate Hotels)
    - **Capital Return**: Approximately $3 billion to shareholders  **[HLT_3380448_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  - **Q1 2024 Guidance**:
    - **System-wide RevPAR Growth**: 2% to 4%
    - **Adjusted EBITDA**: $690 million to $710 million
    - **Diluted EPS Adjusted for Special Items**: $1.36 to $1.44
  - **FY 2024 Guidance**:
    - **RevPAR Growth**: 2% to 4%
    - **Adjusted EBITDA**: $3.33 billion to $3.38 billion
    - **Diluted EPS Adjusted for Special Items**: $6.80 to $6.94
    - **Net Unit Growth**: Expected to accelerate to the higher end of 5.5% to 6% with potential upside of 25 to 50 basis points from partnership with Small Luxury Hotels of the World
    - **Capital Return**: Approximately $3 billion to shareholders  **[HLT_3372187_3]** **[HLT_3372187_2]** .

57c80c60b55a2a529e1c998cab951c654d46d9c4a90cc4c7a276f67ecb75c24c

- Accor S.A. - Mentioned as a primary global competitor in the hospitality industry  **[0001585689-24-000027_hlt-20231231.htm:27]** .
- Choice Hotels International - Mentioned as a primary global competitor in the hospitality industry  **[0001585689-24-000027_hlt-20231231.htm:27]** .
- Hongkong and Shanghai Hotels - Mentioned as a primary global competitor in the hospitality industry  **[0001585689-24-000027_hlt-20231231.htm:27]** .
- Hyatt Hotels Corporation - Mentioned as a primary global competitor in the hospitality industry  **[0001585689-24-000027_hlt-20231231.htm:27]** .
- Intercontinental Hotel Group - Mentioned as a primary global competitor in the hospitality industry  **[0001585689-24-000027_hlt-20231231.htm:27]** .
- Marriott International - Mentioned as a primary global competitor in the hospitality industry  **[0001585689-24-000027_hlt-20231231.htm:27]** .
- Radisson Hotel Group - Mentioned as a primary global competitor in the hospitality industry  **[0001585689-24-000027_hlt-20231231.htm:27]** .
- Wyndham Hotels & Resorts - Mentioned as a primary global competitor in the hospitality industry  **[0001585689-24-000027_hlt-20231231.htm:27]** .

bbc5380ab02a25f8b952108cca5984c173d47a48cd004dea2c41961c42b8406c

RevPAR Increase (%)

Management Contract Intangible Assets ($ million)

Number of Properties

Number of Rooms

Number of Countries and Territories

Hilton Honors Members (million)

Deferred Revenues - Honors ($ million)

Deferred Revenues - Fees ($ million)

Deferred Revenues - Other ($ million)

8ed665d9c67c642be0f6bd17caa278cc3e4f2d3c1bad26d10e8774b4975a62ca

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                        | Position                                                   | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------|------------------------------------------------------------|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Christopher J. Nassetta     | President, Chief Executive Officer, and Director           | December 2007    | **Christopher J. Nassetta**, aged 61, joined Hilton as President and Chief Executive Officer in December 2007 and has served as a director since then. Previously, he was President and CEO of Host Hotels and Resorts, Inc. from May 2000 to October 2007. He co-founded Bailey Capital Corporation and worked at The Oliver Carr Company  **[0001585689-24-000088_hlt-20240403.htm:7]** .                                      |
| Jonathan D. Gray            | Chairman of the Board of Directors                         | 2007             | **Jonathan D. Gray**, 54, has been Chairman of the Board of Directors at Hilton since 2007. He is also the President and COO of Blackstone Inc. and has been on Blackstone's board since February 2012. He was the global head of real estate for Blackstone from January 2012 to February 2018. He holds degrees from the University of Pennsylvania  **[0001585689-24-000088_hlt-20240403.htm:7]** .                  |
| Anne-Marie W. D'Angelo      | Executive Vice President, General Counsel, and Secretary   | September 2023   | **Anne-Marie W. D'Angelo**, 47, has been the Executive Vice President, General Counsel, and Secretary at Hilton since September 2023. Previously, she was Chief Legal and Government Affairs Officer at Molson Coors from 2021 to 2023, and held similar roles at NiSource and Global Brass and Copper Holdings  **[0001585689-24-000088_hlt-20240403.htm:30]** .                                               |
| Laura A. Fuentes            | Executive Vice President and Chief Human Resources Officer | October 2020     | **Laura A. Fuentes** has been serving as the Executive Vice President and Chief Human Resources Officer at Hilton since October 2020. She joined Hilton in 2013 and has led various HR functions. Before Hilton, she worked at Capital One Financial Corporation and McKinsey & Company. She holds degrees from the University of Virginia, University of Texas, and Columbia University  **[0001585689-24-000088_hlt-20240403.htm:30]** **[0001585689-23-000088_hlt-20230405.htm:30]** . |
| Kevin J. Jacobs             | Chief Financial Officer and President, Global Development  | 2008             | **Kevin J. Jacobs** is the Chief Financial Officer and President, Global Development at Hilton. He joined in 2008 as Senior Vice President, Corporate Strategy, became Treasurer in 2009, Executive Vice President and Chief of Staff in 2012, and CFO in 2013. In 2020, he added the role of President, Global Development  **[0001585689-24-000088_hlt-20240403.htm:31]** **[0001585689-23-000088_hlt-20230405.htm:31]** .                                |
| Christopher W. Silcock     | President, Global Brand and Commercial Services             | January 2024     | **Christopher W. Silcock**, 52, has served as Hilton's President, Global Brand and Commercial Services since January 2024. He leads Hilton's brand positioning and commercial services. Previously, he was Executive Vice President and Chief Commercial Officer. He has been with Hilton for nearly 30 years, starting as a waiter at Hilton Watford  **[0001585689-24-000088_hlt-20240403.htm:32]** .                  |

27e19682298bd853bf7c067cd558ffa6ca49f4e3fd6e6c3e8e5d71d9322e0aa0

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | February 2017   |
| End Date/Duration        | N/A             |
| Total additional amount  | **$11 billion**  **[0001585689-24-000191_hlt-20240930.htm:43]**  |
| Remaining authorization amount | **$1.7 billion**  **[0001585689-24-000191_hlt-20240930.htm:34]**  |
| Details                  | The program allows for the repurchase of up to a total of $11 billion of common stock. It does not have an expiration date and may be suspended or discontinued at any time.  **[0001585689-24-000191_hlt-20240930.htm:43]**  |

9a85126cf44703524c028b8cc1f65547bd1c8c127a6a842d37ae6e835f068221

United States

United Kingdom

All Other Countries

- Americas (excluding U.S.)

- Europe

- MEA

- Asia Pacific

Total Revenue

7bcdf8b25977bf42fc7742285ce3c3831289bec835390dee8bb24384356bbd1d

**Quarterly guidance for Q4 2024:**
- **System-wide RevPAR Growth**: 1% to 2%  **[HLT_3403372_3]**  (lowered from 2% to 3%  **[HLT_3396987_4]** )  
- **Adjusted EBITDA**: $804 million to $834 million  **[HLT_3403372_3]**  (lowered from $875 million to $890 million  **[HLT_3396987_4]** )  
- **Diluted EPS Adjusted for Special Items**: $1.57 to $1.67  **[HLT_3403372_3]**  (lowered from $1.80 to $1.85  **[HLT_3396987_4]** )  

**Annual guidance for FY 2024:**
- **RevPAR Growth**: 2% to 2.5%  **[HLT_3403372_3]**  (lowered from 2% to 3%  **[HLT_3396987_4]** )  
- **Adjusted EBITDA**: $3.375 billion to $3.405 billion  **[HLT_3403372_3]**  (no change from prior guidance  **[HLT_3396987_4]** )  
- **Diluted EPS Adjusted for Special Items**: $6.93 to $7.03  **[HLT_3403372_3]**  (no change from prior guidance  **[HLT_3396987_4]** )  
- **Net Unit Growth**: 7% to 7.5%  **[HLT_3403372_3]**  (no change from prior guidance  **[HLT_3396987_4]** )  
- **Capital Return**: Approximately $3 billion to shareholders  **[HLT_3403372_3]**  (no change from prior guidance  **[HLT_3396987_4]** )  

cf627369bb7a3ea2a3621e93d5b814fe39b255b0a138559c241e2fcc0b75807c

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0001585689-24-000027_hlt-20231231.htm:105]**    | Present  | Current auditor   |

9e651507ffdfe065de4ade1712041227c03728d424d6dda59c2d99ae6a7fbd5d

- Total Revenue: $2.867 billion (+7% YoY)  **[0001585689-24-000191_hlt-20240930.htm:17]** **[0001585689-24-000191_hlt-20240930.htm:2]**   
- Management and Franchise: $873 million (+9% YoY)  **[0001585689-24-000191_hlt-20240930.htm:17]** **[0001585689-23-000193_hlt-20230930.htm:15]**   
- Base & Other Management Fees: $103 million (+10% YoY)  **[0001585689-24-000191_hlt-20240930.htm:17]** **[0001585689-23-000193_hlt-20230930.htm:15]**   
- Other Revenues: $58 million (**+29%** YoY)  **[0001585689-24-000191_hlt-20240930.htm:17]** **[0001585689-23-000193_hlt-20230930.htm:15]**   
- Net Income: $344 million (-8% YoY)  **[0001585689-24-000191_hlt-20240930.htm:2]** **[0001585689-24-000191_hlt-20240930.htm:17]** **[0001585689-23-000193_hlt-20230930.htm:2]**   

ae1d9022e733ccb51888a7abab991d482b22e85dc8af2990478b28ecffa4efca

7493737bf9f95b02863ae1802f4c84d196cee3fb839cd4621fc28535943c8f72

09a436980d5068aad03e69517bbfedee88db29f4acf2ab8acb20da43794b31f4

1a5a73601748c9d4d636a71950119551fce03487bcb97d1080c0b79c3e61fe93

| Year  | Amount Due (in millions) | Debt Type                                      | Interest Rate | % of Total Debt |
|-------|--------------------------|------------------------------------------------|---------------|-----------------|
| 2024  | 6 **[0001585689-24-000191_hlt-20240930.htm:9]**                | Other debt of consolidated VIEs                | 1.58% **[0001585689-24-000191_hlt-20240930.htm:9]** | 0.1% = (6 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |
| 2025  | 500 **[0001585689-24-000191_hlt-20240930.htm:9]**              | Senior notes                                   | 5.375% **[0001585689-24-000191_hlt-20240930.htm:9]**| 4.4% = (500 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |
| 2027  | 600 **[0001585689-24-000191_hlt-20240930.htm:9]**              | Senior notes                                   | 4.875% **[0001585689-24-000191_hlt-20240930.htm:9]**| 5.3% = (600 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |
| 2028  | 500 **[0001585689-24-000191_hlt-20240930.htm:9]**              | Senior notes                                   | 5.750% **[0001585689-24-000191_hlt-20240930.htm:9]**| 4.4% = (500 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |
| 2029  | 1,350 **[0001585689-24-000191_hlt-20240930.htm:9]**            | Senior notes                                   | 5.875% & 3.750% **[0001585689-24-000191_hlt-20240930.htm:9]**| 11.9% = (1350 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |
| 2030  | 4,119 **[0001585689-24-000191_hlt-20240930.htm:9]**            | Senior secured term loan facility & Senior notes | 6.60% & 4.875% **[0001585689-24-000191_hlt-20240930.htm:9]**| 36.4% = (4119 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |
| 2031  | 1,100 **[0001585689-24-000191_hlt-20240930.htm:9]**            | Senior notes                                   | 4.000% **[0001585689-24-000191_hlt-20240930.htm:9]**| 9.7% = (1100 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |
| 2032  | 1,950 **[0001585689-24-000191_hlt-20240930.htm:9]**            | Senior notes                                   | 3.625% & 6.125% **[0001585689-24-000191_hlt-20240930.htm:9]**| 17.3% = (1950 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |
| 2033  | 1,000 **[0001585689-24-000191_hlt-20240930.htm:9]**            | Senior notes                                   | 5.875% **[0001585689-24-000191_hlt-20240930.htm:9]**| 8.8% = (1000 / 11300) * 100 **[0001585689-24-000191_hlt-20240930.htm:37]** **[0001585689-24-000191_hlt-20240930.htm:9]** |

800a65302b15e7c89f672f6e607b97964ae96f5e72c933be812d002d66878bdf

- **Challenging borrowing environment with high interest rates**: Hilton's management acknowledged that the borrowing environment has been **a little bit challenged**, and they haven't liked where **rates have been**, indicating potential difficulties in financing growth.  **[HLT_3372187_24]**
- **Potential increase in hotel supply leading to competition**: There is concern that the **development pipeline continues to build** and at some point, **supply growth will take off**, which could increase competition and impact Hilton's market share.  **[HLT_3372187_22]**
- **Revenue decline due to loss of government subsidies**: Despite experiencing **15% RevPAR growth** in the owned and leased segment, Hilton faced an **8% revenue decline**, attributed to the **impact of government subsidies last year** that are no longer present. This suggests that revenue growth may not be as strong without such subsidies.  **[HLT_3372187_20]**

10398ce80a311dfe67947d4e2ffd50e19c3c097837c929e772d29631471b5d6e

- **Management acknowledges softening in certain international markets and a weakening macro environment**, leading to a **downward adjustment of RevPAR and EBITDA guidance**.  **[HLT_3396987_13]**
- **Foreign exchange headwinds are negatively impacting the company's full-year guidance**, becoming **more of a headwind over the course of the quarter**.  **[HLT_3396987_23]** ,  **[HLT_3396987_20]**
- **Organic net unit growth is slightly less than prior guidance**, with some openings moving from the fourth quarter into the first quarter of next year, indicating potential **delays in project completion**.  **[HLT_3396987_5]**

3196f47e4dc57de20adc4d276e7d5a1bf43549bc56d2f522a416a7a8aa2c556f

- **Strong Development Pipeline Driving Net Unit Growth**: Hilton expects net unit growth of **6% to 7% over the next few years**, with plans to **sign more deals than ever** and have more hotels under construction than before. Both new development and conversions are up in the **low teens**, indicating robust expansion.  **[HLT_3380448_5]**
- **Growth in High-Margin Fee Revenues Enhancing Profitability**: The company's fee-based revenue is growing strongly, with **base and other fees up about 32% year-over-year**. High-margin revenues from management fees, incentive management fees, license fees, and a strong purchasing business are contributing to better flow-through and margin growth.  **[HLT_3380448_21]** **[HLT_3380448_9]**
- **Resilient International Performance and Expanding Loyalty Program**: Europe remains resilient with RevPAR up **10% in the quarter**, benefiting from strong demand across all segments. The Hilton Honors loyalty program reached a historical high occupancy of **64%**, up over **300 basis points year-over-year**, with aspirations to reach **75%**, enhancing customer engagement and driving market share gains.  **[HLT_3380448_20]** **[HLT_3380448_16]** **[HLT_3380448_8]**

b7ec66e85e329ab1e6f1792e77a3d7d2cef6a083495f42215ad2e22186cf2747

- **RevPAR growth in the first quarter was at the low end of expectations due to renovations, weather impacts, and holiday shifts, which weighed on results more than anticipated.**  **[HLT_3380448_5]**
- **Hilton's performance is dependent on macroeconomic conditions, and any economic slowdown or higher interest rates could negatively impact demand, especially in the U.S., where RevPAR growth is expected to be at the lower end of the range.**  **[HLT_3380448_17]** ,  **[HLT_3380448_8]**
- **Growth in China is expected to be flat for the year as domestic travelers begin traveling abroad, impacting occupancy in secondary and tertiary markets.**  **[HLT_3380448_8]**

90db6e387f3792c7ed42ed7b88087703659754d295c5fde4d20d03969e36646e

1. **SLH Strategic Partnership**  
   **Q:** Details on the SLH deal and its impact?  
   **A:** Hilton announced a strategic partnership with Small Luxury Hotels (SLH), adding over **500 unique, small luxury hotels** to their portfolio.  **[HLT_3372187_7]**  This move expands Hilton's offerings in niche markets without overlapping existing brands. The deal is capital-light, with license fees similar to direct brands, and Hilton will earn fees on the business it generates.  **[HLT_3372187_7]**  This partnership enhances the network effect and provides customers with more options while being accretive to shareholders.

2. **2024 Unit Growth and SLH Inclusion**  
   **Q:** Does 2024 guidance include SLH and M&A?  
   **A:** No, the **5.5% to 6%** net unit growth guidance is purely organic.  **[HLT_3372187_6]**  SLH is expected to add **25 to 50 basis points** on top of that, depending on how quickly hotels integrate into Hilton's system.  **[HLT_3372187_6]**  Any future acquisitions would also be incremental to this guidance.

3. **Segment Outlook for 2024**  
   **Q:** Outlook for business, group, and leisure segments?  
   **A:** Business transient demand is recovering and expected to normalize by year-end, assuming a soft landing in the economy.  **[HLT_3372187_5]**  Group demand is **"off the hook,"** with bookings reaching new highs and strong pricing power due to limited supply.  **[HLT_3372187_5]**  Leisure travel will grow more in **rate than volume**, with continued strong consumer demand despite potential economic headwinds.  **[HLT_3372187_5]** 

4. **Supply Growth and Pipeline Concerns**  
   **Q:** Is supply growth expected to increase soon?  
   **A:** Supply growth remains constrained at around **1%** due to high construction costs and limited financing availability.  **[HLT_3372187_22]**  While project starts are up, significant new supply additions are unlikely for a couple of years, benefiting Hilton due to low supply and strong demand.  **[HLT_3372187_22]** 

5. **Acquisition Strategy and M&A Outlook**  
   **Q:** Is Hilton considering more brand acquisitions?  
   **A:** Hilton maintains a rigorous filtration system for M&A, seeking opportunities that are additive to their brand portfolio and accretive to company value.  **[HLT_3372187_4]**  While the current environment presents more opportunities due to market stress, there are no specific acquisitions to announce at this time.  **[HLT_3372187_4]** 

6. **Inbound vs. Outbound Travel Recovery**  
   **Q:** Expectations for inbound vs. outbound travel?  
   **A:** Hilton anticipates a much stronger **inbound international travel** year, which will benefit urban markets.  **[HLT_3372187_21]**  Outbound travel will remain robust but may not dominate as it did previously. Recovery in inbound travel, excluding China, is expected to continue throughout the year.  **[HLT_3372187_21]** 

7. **Progress on Spark Brand**  
   **Q:** How is the Spark brand progressing?  
   **A:** Spark is performing well, with nearly **150 hotels** in the pipeline and another **250 deals** in progress.  **[HLT_3372187_16]**  There are **8 to 10 hotels** already open, showing strong market share premiums and loyalty contributions.  **[HLT_3372187_16]**  The brand is expected to continue growing, bringing new customers into the Hilton system.

8. **Fee Growth Expectations**  
   **Q:** Outlook for fee growth in 2024?  
   **A:** Fee growth is expected to be **above algorithm**, as usual, despite some headwinds from foreign exchange.  **[HLT_3372187_23]**  The growth will be driven by strong performance across all segments and continued expansion of Hilton's brand portfolio.

9. **Plans to Return to Target Leverage**  
   **Q:** Plans to get back to 3–3.5x leverage?  
   **A:** Hilton expects to approach the bottom end of the **3 to 3.5 times** leverage range by year-end, based on current guidance.  **[HLT_3372187_24]**  The company views this range as appropriate and is committed to returning to it, with capital returns increasing as leverage decreases.  **[HLT_3372187_24]** 

10. **Luxury Lifestyle Brand Launch**  
    **Q:** Is SLH the new luxury lifestyle brand?  
    **A:** No, the partnership with SLH is separate. Hilton plans to enter the **luxury lifestyle space** later this year with a brand new offering.  **[HLT_3372187_19]**  This initiative is part of Hilton's ongoing strategy to expand into new segments without conflicting with existing brands or the SLH partnership.

109da4b14234c5caddc73af04eb14ca38da6d777be9b98d767e38a24399384b1

- **Hilton achieved record net unit growth of 7.8%**, opening **more hotel rooms than any other quarter in the company's history**, driven by strong international expansion, particularly in China where **approvals, starts, and opens are expected to be up this year**  **[HLT_3403372_11]** .
- The company's brands are performing exceptionally well, leading to **an outsized amount of conversions** and increased market share, which is now **significantly higher than competitors**. Owners are confident in Hilton's ability to deliver strong returns over long-term relationships  **[HLT_3403372_8]** .
- Recent strategic acquisitions, such as the Graduate Hotels and the integration of Small Luxury Hotels of the World properties, have been **immediately accretive to earnings** and are enhancing customer engagement, providing unique luxury experiences, and expanding Hilton's offerings globally  **[HLT_3403372_16]** **[HLT_3403372_12]** .

20894f74375fda20e450559ac2d064b17819e5e19990eb41ebc0ee2415181b3f

1. **2025 EBITDA Target and RevPAR Outlook**  
   **Q:** Is the $3.69B 2025 EBITDA target still achievable?  
   **A:** Yes, Hilton's CEO, Christopher Nassetta, expressed confidence that the **$3.69 billion** EBITDA target for 2025 is achievable despite industry RevPAR growth estimates of **1–2%**. He believes that 2025 will look a lot like 2024, with solid economic growth and resilient macro conditions leading to similar RevPAR growth. He expects a balance of same-store growth and unit growth to drive results, stating, "I am very confident that algorithm will be alive and well for 2025."  **[HLT_3403372_4]** 

2. **Net Unit Growth Guidance and Assumptions**  
   **Q:** Can you walk us through the assumptions behind the 6–7% NUG guidance?  
   **A:** Hilton expects **6–7%** net unit growth for next year, driven organically with about one-third from conversions. They feel good about this range as they have significant visibility into projects under construction and conversions in the pipeline. Any variation would likely come from the conversion space, depending on the number of additional conversion opportunities they secure.  **[HLT_3403372_5]** 

3. **Visibility on Business Transient and Leisure Demand**  
   **Q:** How does your visibility on business and leisure demand compare to 2019?  
   **A:** Hilton's visibility on business transient and leisure demand remains limited to **60–90 days out**, similar to 2019 levels. While they have better listening posts and data from customers, actual booking visibility hasn't materially changed. Their outlook relies on macroeconomic consensus and anecdotal evidence from customers, with group bookings providing the most visibility due to their stickiness.  **[HLT_3403372_9]** 

4. **Outsized Conversion Growth**  
   **Q:** How is Hilton achieving an outsized amount of conversions?  
   **A:** Hilton attributes its success in conversions to being scrappy and gritty, building strong relationships, and most importantly, delivering superior performance. Their brands are performing well, and market share is at its highest, which instills confidence in owners investing in long-term relationships. They focus on generating returns for owners, which drives their outsized share of conversions.  **[HLT_3403372_8]** 

5. **Impact of Macro Environment on Development and RevPAR Index**  
   **Q:** Is a slower RevPAR backdrop better for your business?  
   **A:** While Hilton prefers higher RevPAR, a slower RevPAR environment has benefits. In challenging conditions with less financing available, Hilton disproportionately gains more conversions and new construction due to its strong brands. They continue to deliver better market share and resilience, expecting to achieve circa **10%** EBITDA growth even in the current environment. This resilience is a testament to their model's strength.  **[HLT_3403372_13]** 

6. **International Unit Growth and China**  
   **Q:** Where are the key opportunities for international expansion, especially in China?  
   **A:** Hilton's pipeline is about **55%** outside the U.S., with around **80%** of projects under construction internationally. They see significant growth opportunities in Asia Pacific, particularly in China, India, and the Middle East. In China, despite macroeconomic slowdowns, Hilton expects approvals, starts, and openings to be up, leveraging adaptive reuse projects. They adapt their brands to local markets while maintaining their essence and positioning.  **[HLT_3403372_11]** 

7. **Group Business Dynamics**  
   **Q:** What's driving the continued strength in group bookings?  
   **A:** The strength in group bookings is broad-based, including increased citywide conventions, strong social group business, and robust corporate meetings demand. Big citywide events are picking up after a period of limited activity, and companies are scheduling more meetings to foster innovation and culture in a post-remote work environment. This diverse demand supports sustained group booking growth.  **[HLT_3403372_10]** 

8. **SLH Partnership Impact**  
   **Q:** How is the SLH partnership performing?  
   **A:** Though still early, the SLH partnership is showing promising results. Customers are engaging with the new luxury properties added to Hilton's system, with strong interest and healthy redemption usage. As many SLH properties are resorts booking well in advance, Hilton expects to see more significant benefits in the upcoming spring and summer seasons, enhancing offerings for high-end leisure customers.  **[HLT_3403372_12]** 

9. **Key Money Guidance**  
   **Q:** Has there been a change in key money usage or guidance?  
   **A:** There is no change in Hilton's approach to key money. They continue to use it on less than **10%** of deals, primarily when necessary due to competition. The reduction in key money guidance this quarter is due to timing, with some projects likely shifting to next year. Last year was heavier due to strategic projects, and this year's spend will be lighter.  **[HLT_3403372_15]** 

10. **Occupancy and Rate Strategy**  
    **Q:** Has your approach to pushing rate over occupancy shifted recently?  
    **A:** Hilton's approach has not materially changed in recent months. Despite inflation moderating, it remains above target levels, providing continued pricing power. Hilton expects to maintain strong rate integrity across most segments, leveraging their revenue management systems to optimize pricing. They anticipate solid pricing pressure to persist due to macroeconomic conditions.  **[HLT_3403372_14]** 

11. **Fees per Room Mix Stability**  
    **Q:** Has the fee per room mix changed with the development pipeline?  
    **A:** Hilton is not seeing any change in fees per room. The overall mix remains consistent, with the majority of development occurring in brands that command the highest fees. They continue to see strong long-term growth in fees per room, supported by RevPAR growth, contract renewals, and licensing fee increases.  **[HLT_3403372_6]** 

12. **ROI Targets for Brand Development vs. Acquisitions**  
    **Q:** What are your ROI targets for developing brands internally versus acquiring them?  
    **A:** Hilton typically achieves near-infinite ROI when developing brands internally, making it the preferred approach. However, recent tuck-in acquisitions were strategically targeted and acquired under favorable conditions, making them immediately accretive to earnings. These acquisitions were specific to Hilton's strategic needs and allowed them to capitalize on market opportunities.  **[HLT_3403372_16]** 

14d3b27628bc0bbd64e4168efdd2685a3075f7959ac03c1db80e759684dd4de8

- **RevPAR growth is slowing and has underperformed expectations**: In the third quarter, system-wide RevPAR increased only **1.4% year-over-year, below Hilton's guidance range** due to factors like slower ramp in September, weather impacts, and ongoing labor disputes in the U.S.  **[HLT_3403372_1]**  Adjusted RevPAR growth was **2.3%**, slightly softer than the second quarter.  **[HLT_3403372_1]**
- **Significant decline in RevPAR in China impacting Asia Pacific performance**: Third quarter RevPAR in Asia Pacific decreased by **3% year-over-year**, with **China's RevPAR declining 9% due to difficult domestic travel comparisons and disruptions**.  **[HLT_3403372_3]**
- **Leisure demand is normalizing with potential downward pressure on rates and occupancy**: Leisure trends continued to normalize, **with RevPAR declining modestly from post-pandemic peaks**.  **[HLT_3403372_1]**  There may be less pricing pressure in leisure segments, particularly on weekends, as demand might be flat or decreasing.  **[HLT_3403372_14]**

bb302188f6da67d40ac3eb339ba6a4f9500e8092a33eff9016fdaccc3fbbd1af

1. **Net Unit Growth and Acquisitions**  
   **Q:** Can you detail what's contributing to the increased net unit growth and what's changed from the previous quarter?  
   **A:** The increase to **7%–7.5%** net unit growth is primarily due to the addition of Graduate Hotels, contributing about **0.5 point**, and better-than-expected performance from our SLH partnership, adding about **1.5 points**. Organically, growth is slightly less due to some projects shifting from Q4 into next year, but we're hitting historic highs in signings and starts, excluding partnerships or acquisitions. We feel confident about maintaining organic growth within our **6%–7%** algorithm next year, given our strong pipeline.  **[HLT_3396987_5]** 

2. **Contract Acquisition Spend**  
   **Q:** Should we expect contract acquisition spend to remain at current levels over the next few years?  
   **A:** Last year's spend was elevated due to specific high-end deals. This year, it will moderate and be lower than last year. Going forward, we expect contract acquisition spend to be comparable to this year's level. In Q2, key money was involved in **7%–8%** of deals, with overall key money still less than **10%**. We haven't seen significant changes in these figures and expect them to remain stable over the next 2–3 years.  **[HLT_3396987_6]** 

3. **Macroeconomic Trends and Consumer Behavior**  
   **Q:** How are macro trends and consumer behavior impacting your business?  
   **A:** In China, despite economic slowdown, travel remains robust but is offset by increased outbound travel and insufficient inbound traffic, ending the year likely down **5%**. APAC ex-China is strong, led by Korea, Japan, and India. In Europe, leisure demand has slightly softened but remains high. In the U.S., group and business transient segments are strong, while leisure transient is normalizing. Lower-income consumers are spending less due to depleted savings, but higher-income consumers remain active. Overall, we're seeing normalization in leisure travel but growth in other segments.  **[HLT_3396987_8]** 

4. **Non-RevPAR Fee Growth and Outlook**  
   **Q:** What's driving the growth in non-RevPAR-related fees, and can this continue?  
   **A:** Non-RevPAR fees outperformed in the first half due to timing and some one-time items. Longer-term, we expect these fees to grow at or above our algorithm. We're actively influencing this growth through strategies like enhancing our co-brand credit card offerings and partnering with Hilton Grand Vacations, including involvement in their acquisitions. We have dedicated teams working on maximizing these opportunities, and we anticipate ongoing positive contributions from these efforts.  **[HLT_3396987_9]** **[HLT_3396987_11]** 

5. **EBITDA Margin Expansion Outlook**  
   **Q:** How much more room is there for EBITDA margin growth in the coming years?  
   **A:** We anticipate **50–100 basis points** of embedded margin growth annually as we focus on our fee-based segments and maintain disciplined cost control. Our margins are now **1,000 basis points** higher than pre-COVID levels. This year, we expect to exceed **100 basis points** in EBITDA margin growth, and while results may vary year to year, we believe consistent margin expansion is achievable over time.  **[HLT_3396987_17]** **[HLT_3396987_18]** 

6. **RevPAR Outlook and Drivers**  
   **Q:** What factors could drive you toward the higher end of your RevPAR outlook in the second half?  
   **A:** The implied RevPAR growth of **2%–3%** per quarter reflects current trends. The third quarter has been slightly softer, but we expect an acceleration in the fourth quarter as business travel and group bookings pick up, especially in October and November. Our strong group position and anticipated strengthening in larger urban markets could contribute to higher RevPAR growth, with U.S. economic performance being a key driver.  **[HLT_3396987_14]** **[HLT_3396987_16]** 

7. **Conversions and Net Unit Growth Outlook**  
   **Q:** Can you discuss the role of conversions in your net unit growth and expectations for acceleration?  
   **A:** Conversions are accelerating and will account for over **50%** of net unit growth this year, partly due to partnerships and acquisitions. Excluding those, conversions are increasing from **30% to just under 40%**. We're capturing a disproportionate share of conversions thanks to our strong brands and commercial engines. We expect to maintain organic growth solidly within the **6%–7%** range next year, supported by our strategic focus on conversions.  **[HLT_3396987_12]** 

8. **SLH Hotels and Fee Contribution**  
   **Q:** How do SLH hotels contribute to your fees, and what are you expecting from them?  
   **A:** Some of the resilience in our EBITDA guidance, despite lower RevPAR expectations, is due to better-than-expected fees from SLH hotels. We earn normal franchise-like fees based on the business we generate for these hotels, which have average rates **5–7 times** higher than our system-wide average. This contributes positively to our fee income as SLH performs well.  **[HLT_3396987_15]** 

9. **Impact of Bundling Resort Fees on ADR and Demand**  
   **Q:** Have you seen any impact on ADR growth or customer demand from bundling resort fees into a single rate?  
   **A:** No, we haven't observed any impact on ADR or customer demand from this change. It's still early, but we view bundling as enhancing transparency for guests. We do not expect this to affect our pricing power or demand moving forward.  **[HLT_3396987_16]** **[HLT_3396987_17]** 

10. **Outlook for High-Growth Regions**  
    **Q:** Can high-growth regions like Middle East, Africa, and Asia ex-China maintain their momentum?  
    **A:** Yes, we feel good about the second half prospects in these regions. APAC ex-China is expected to perform very well, driven by strong markets like Korea and Japan. Similarly, the Middle East and Africa are maintaining robust growth. We don't anticipate convergence around lower global RevPAR guidance in these high-performing areas.  **[HLT_3396987_21]** 

9c9b3f06db5b1dfc396eeffdb25058fbd37116cd712cc211c79c0d9e6805123b

1. **Guidance and Outlook**  
   **Q:** What's changed in outlook considering Q1 and RevPAR?  
   **A:** Despite a slightly lighter RevPAR in Q1 due to more under-construction properties and weather impacts, we maintained our guidance for the year. The broader economy remains **reasonably strong** and **resilient**, with strong employment and corporate profits. Group business demand is **incredibly strong**, and we expect modest growth, mostly from rate increases, as we continue to have pricing power.  **[HLT_3380448_5]** 

2. **U.S. RevPAR Growth and China Performance**  
   **Q:** U.S. at lower end of range; thoughts on China impact?  
   **A:** In the U.S., April is in line with expectations, and we expect the U.S. to be at the lower end of our **2% to 4% RevPAR growth**. Europe remains resilient, up **10%** in the quarter. China was **flattish** and expected to be the same for the year as domestic travel stabilizes and outbound travel increases. Increased inbound travel and more flights will help China. We are benefiting from Chinese travelers in Southeast Asia and Japan.  **[HLT_3380448_8]** 

3. **Group and BT vs. 2019 Levels**  
   **Q:** Where are Group and business transient versus 2019?  
   **A:** Both Group and business transient revenues are exceeding 2019 levels, but from a demand standpoint, they are slightly below. Group demand is expected to return to 2019 levels by year-end, with strong growth. Business transient is modestly below 2019 but improving, particularly with large corporates traveling more. We expect occupancy to build throughout the year, maintaining pricing power.  **[HLT_3380448_7]** 

4. **Lower-End Chain Scale Outlook**  
   **Q:** Will lower-end segments be positive year-over-year?  
   **A:** Yes, modestly. We expect the lower-end chain scales to be positive but lower in performance compared to higher chain scales. They were impacted more in Q1 due to factors like more properties under construction and difficult comps, but we anticipate improvement in the second half of the year.  **[HLT_3380448_6]** 

5. **Fee Growth and Seasonality**  
   **Q:** Can we sustain fee rate improvement seen in Q1?  
   **A:** While there were some timing items in fees, much of the improvement is due to strength in parts of the world where our managed business is bigger. We expect incentive management fees to continue as a strong contributor throughout the year, with no anomalies affecting this trend.  **[HLT_3380448_14]** 

6. **Net Unit Growth and Acquisitions**  
   **Q:** How will acquisitions impact net unit growth?  
   **A:** We incorporated SLH into our **6% to 6.5%** NUG guidance. Graduate Hotels will be added once closed. SLH properties will come into our system over the next couple of years, contributing an estimated **0.25% to 0.5%** to NUG. We expect to maintain **6% to 7% NUG** over the next few years, primarily through organic growth.  **[HLT_3380448_10]** 

7. **Pipeline Under Construction and Development Environment**  
   **Q:** What's driving the increase in pipeline under construction?  
   **A:** The increase is from both the U.S. and international markets, with conversions moving to construction more quickly. While labor and material costs have leveled off, capital remains more expensive but slightly less so than last year. Better developers and projects are getting financed, and we are taking share despite fewer projects overall.  **[HLT_3380448_11]** 

8. **Group Business Beyond 2024**  
   **Q:** Is Group business building for 2025 and beyond?  
   **A:** Yes, bookings for 2025 and 2026 are up **13%** and **15%**, indicating strong demand and growth in Group business commitments for the future.  **[HLT_3380448_13]** 

9. **Honors Loyalty Program Engagement**  
   **Q:** How are you increasing Honors engagement?  
   **A:** Honors occupancy reached a historical high of **64%**, up **300 basis points** year-over-year. We're enhancing engagement through partnerships like SLH and AutoCamp, and aiming for **75%** Honors occupancy over time. We focus on providing customers with more options and experiences to drive loyalty.  **[HLT_3380448_16]** 

10. **Competition for Conversions**  
    **Q:** Where is competition for conversions most intense?  
    **A:** Competition varies by deal and market. In luxury, there's more competition due to more brands. In middle tiers, we often lead. Last year, we captured **40%** of all U.S. conversion deals. Our new brand, Spark, will be disruptive in segments we haven't been in before, and we're successful globally in conversions.  **[HLT_3380448_19]** 

11. **NoMad Brand Plans**  
    **Q:** What are your plans for the NoMad brand?  
    **A:** NoMad is a strong luxury lifestyle brand. We believe it can reach upwards of **100 hotels** over time, mostly through new builds and some conversions. It's a longer-term growth opportunity that will fit nicely into our portfolio and contribute positively to NUG.  **[HLT_3380448_15]** 

12. **Impact of Olympics and Economic Risks**  
    **Q:** How will the Olympics and economy affect results?  
    **A:** The Olympics will positively impact Europe and Paris but won't dramatically affect our numbers as France is a smaller part of our portfolio. Regarding economic risks, our outlook assumes a **soft landing** with continued growth and strong employment. Our core customers have a **median income of $150,000**, indicating resilience against economic pressures.  **[HLT_3380448_17]** 

13. **Europe Demand Dynamics**  
    **Q:** Where is demand in Europe coming from?  
    **A:** Demand in Europe is strong across the board, with robust Group, business, and leisure travel. The strength of the dollar enhances purchasing power for leisure travelers, contributing to increased demand in the region.  **[HLT_3380448_20]** 

14. **Flow-Through on Revenue to EBITDA**  
    **Q:** What's driving strong EBITDA flow-through in Q1?  
    **A:** Strong discipline and focus on our high-margin fee business led to good flow-through. Incremental dollars from fees and incentive management fees drop straight to the bottom line, resulting in better margins even when top-line revenue is lighter than expected.  **[HLT_3380448_21]** 

15. **Timing Items and Guidance Increase**  
    **Q:** Explain timing items and guidance adjustments.  
    **A:** Timing items of about **$5 million to $10 million** in Q1 will largely reverse in Q2. We increased our guidance midpoint by **$45 million**, considering an incremental FX headwind of about **$10 million to $15 million** over the year.  **[HLT_3380448_12]** 

16. **Occupancy Below 2019 Levels**  
    **Q:** Is occupancy lagging due to structural shifts?  
    **A:** The lower occupancy compared to 2019 is mainly due to seasonality and the holiday shift affecting leisure travel. We expect occupancy levels to normalize, as we were close to 2019 levels by Q4 last year.  **[HLT_3380448_18]** 

17. **China Operations and Impact**  
    **Q:** What's needed to improve China performance?  
    **A:** Inbound travel to China needs to increase, along with more flights from major destinations. While domestic travel has stabilized, increased international travel will drive growth. We're starting to see more flights scheduled and expect that to benefit us in the second and third quarters.  **[HLT_3380448_8]** 

505dc69a376e0adc759a1420393d753614527ffa90344ed8dc7f0f4fc2eac01b

- **Hilton's development pipeline reached an all-time high, with signings up 45% year-over-year, indicating strong future growth prospects.**  **[HLT_3372187_18]**
- **Hilton expects organic net unit growth in 2024 at the high end of 5.5% to 6%, with potential upside from the Small Luxury Hotels of the World (SLH) partnership adding 25 to 50 basis points.**  **[HLT_3372187_6]**
- **Hilton is capturing an outsized share of new development, with one in five rooms under construction globally affiliated with Hilton brands, more than any other hotel company.**  **[HLT_3372187_22]**

043be72f49475c82024d87c086182e8ad998381eea72df1715f05125625779c0

Hilton Worldwide Holdings Inc (HLT)

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