Hilton Worldwide Holdings Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-08-08
Hilton Worldwide Holdings Inc. Reports Second Quarter 2024 Financial Results
Hilton Worldwide Holdings Inc. ("Hilton") released its financial results for the second quarter of 2024.
Key Financial Metrics
| Financial Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $2.93B | $2.78B | +5.4% | $2.93B |
| Diluted EPS | $1.67 | $1.55 | +7.7% | $1.86 |
| Adjusted EPS | $1.91 | $1.63 | +17.2% | - |
| Net Income | $422M | $413M | +2.2% | - |
| Adjusted EBITDA | $917M | $811M | +13.1% | - |
Interpretation : Hilton delivered strong financial performance in the second quarter of 2024, with a notable year-over-year increase in adjusted EBITDA of 13.1% and adjusted EPS growth of 17.2%. However, diluted EPS fell short of the consensus estimate of $1.86 despite a significant YoY growth.
Revenue Performance Across Major Segments
| Segment | Q2 2024 Revenue ($M) | YoY Change |
|---|---|---|
| Management & Franchise | - | +10.0% |
| Comparable RevPAR | - | +3.5% |
Interpretation : Revenue growth in Hilton's management and franchise segment was robust at 10%, supported by a 3.5% year-over-year increase in system-wide comparable RevPAR. This indicates strong operational performance across its portfolio.
Key Operational Data
| Operational Data | Q2 2024 | YoY Change |
|---|---|---|
| New Rooms Approved | 62,700 | +15% |
| New Rooms Added | 22,400 | - |
| Net Additional Rooms | 18,000 | - |
| Development Pipeline | 508,300 rooms | +15% |
| Net Unit Growth | - | +6.2% |
Comments from Company Officers
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, remarked, "We are pleased to report a solid second quarter, with an increase in RevPAR of 3.5%, driven by growth in all segments, with particularly strong group performance. On the development side, we ended the quarter with a record development pipeline, up 15% from the prior year and up 8% sequentially from the first quarter, including strategic partner hotels."
Dividends and Share Repurchase Program
Hilton declared a quarterly cash dividend of $0.15 per share, to be paid on September 27, 2024. Additionally, during the second quarter, Hilton repurchased 3.5 million shares, returning approximately $724 million to shareholders.
Forward Guidance
For the full year 2024, Hilton projects: - System-wide comparable RevPAR to increase between 2.0% and 3.0% on a currency-neutral basis - Diluted EPS between $6.06 and $6.15 - Adjusted EPS between $6.93 and $7.03 - Net income between $1,532 million and $1,555 million - Adjusted EBITDA between $3,375 million and $3,405 million - Net unit growth between 7.0% and 7.5%
Stock Price Movement
Hilton’s stock experienced a modest decline of -0.84% following the earnings release.
Hilton's comprehensive performance in the second quarter of 2024 underscores its strategic initiatives and operational prowess despite falling slightly short on EPS consensus estimates.
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