Why did HLT's EPS fluctuate in 2024?

The fluctuation in Hilton Worldwide's (HLT) EPS in 2024 can be attributed to several factors:

1. **Revenue Growth and Profit Margin**: Hilton Worldwide experienced a significant revenue surge, with a reported increase of 175% from the first quarter of 2023, reaching $2.57 billion. However, despite the revenue outperformance, the profit margin decreased from 22% in the first quarter of 2023 to 10%. This decline in profit margin, primarily due to higher expenses, directly impacted the EPS, as the net income increase of 29% was not matched by a proportional decrease in expenses.
2. **Strategic Developments and Investments**: The company's expansion efforts, including the approval of 29,800 new rooms and the addition of 16,800 rooms to its system, contributed to a record 472,300 rooms in its development pipeline. Such strategic investments often lead to increased expenses, which can temporarily strain financial performance and impact EPS.
3. **Leisure Travel Trends**: Hilton Worldwide anticipated softer demand for leisure travel in the United States, leading to a forecasted lower 2024 profit due to higher expenses. This shift in demand, particularly in the leisure segment, might have affected occupancy rates and average daily rates, thereby influencing revenue and, subsequently, EPS.
4. **Quarterly Variations in Business**: The hospitality industry is subject to seasonal fluctuations, with higher demand during certain periods. The fluctuation in EPS might also be attributed to uneven revenue distribution across quarters, where performance in peak seasons (like Q3) might offset slower periods (like Q4).

In summary, Hilton Worldwide's EPS fluctuation in 2024 was primarily driven by revenue growth, profit margin adjustments due to increased expenses, strategic developments, changes in leisure travel demand, and seasonal variations in business.