Hilton Worldwide 2025 Q1 Earnings Mixed Results as Net Income Rises 11.9%

Hilton Worldwide (HLT) reported its fiscal 2025 Q1 earnings on April 29th, 2025. The company exceeded expectations for EPS, posting $1.72 per share against the anticipated $1.61, though revenue of $2.69 billion slightly missed the consensus estimate of $2.72 billion. Net income increased by 11.9% to $300 million. Hilton also raised its full-year adjusted EPS guidance to $7.76-$7.94, reflecting its confidence in future performance despite ongoing macroeconomic challenges.

Revenue
Hilton Worldwide's total revenue for Q1 2025 rose by 1.2% to $2.69 billion, up from $2.57 billion in the previous year. Franchise and licensing fees generated $625 million, while base and other management fees brought in $88 million. Incentive management fees contributed $72 million, with ownership revenue at $234 million. Other revenues added $46 million, and cost reimbursement revenues reached $1.63 billion.

Earnings/Net Income
Hilton's EPS for Q1 2025 increased by 19.0% to $1.25, up from $1.05 in Q1 2024, highlighting positive earnings growth. The company's net income of $300 million marked an 11.9% increase from $268 million in the previous year. This indicates a strong financial performance for the quarter.

Post-Earnings Price Action Review
Following the Q1 2025 earnings release, Hilton Worldwide's stock showed varied performance across different time frames. The 3-day win rate for revenue stood at 52.38%, with a 10-day rate of 57.14% and a 30-day rate of 61.90%, suggesting favorable short- to medium-term performance post-revenue disclosure. Similarly, net income and EPS disclosures reflected win rates of 57.14% over 10 days and 61.90% over 30 days. These metrics indicate that the stock tends to perform well in the aftermath of earnings releases, with the potential for price appreciation and maximum returns observed at 10.85% over 30 days. Investors may find these metrics useful for assessing the stock's performance following earnings announcements.

CEO Commentary
Christopher Nassetta, Hilton's CEO, praised the company's Q1 performance, noting that adjusted EBITDA and EPS exceeded expectations amidst challenging economic conditions. He pointed out a 2.5% growth in system-wide RevPAR, driven by group performance, though demand dipped in March due to economic uncertainty. Nassetta expressed optimism about Hilton's development pipeline and asset-light business model, which he believes will sustain stability amid legislative changes.

Guidance
For Q2 2025, Hilton projects flat system-wide RevPAR growth year-over-year. Adjusted EBITDA is estimated between $940 million and $960 million, with adjusted EPS expected between $1.97 and $2.02. For the full year, RevPAR growth is forecasted at 0% to 2%, with adjusted EBITDA between $3.65 billion and $3.71 billion, and adjusted EPS from $7.76 to $7.94.

Additional News
In recent developments, Hilton Worldwide has focused on expanding its brand presence. The company opened 186 new hotels in Q1 2025, adding 20,100 rooms. Notably, Hilton launched the Tempo by Hilton brand in the U.K., its first outside the U.S., along with the Tapestry Collection and Curio Collection in Greece, and Canopy by Hilton in Utah. Additionally, Hilton repurchased 3.7 million shares of its stock in the first quarter, returning $927 million to shareholders, including dividends, as part of its ongoing capital return strategy.