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Hilton posted Q2 adjusted EPS of $2.20 and revenues of $3.14B, beating consensus estimates on both fronts.
Q2 RevPAR dipped 0.5% Y/Y, but adjusted EBITDA rose 9.9% to $1B on solid fee-based growth.
Hilton added 221 hotels in Q2 and expects 2025 net unit growth of 6-7% with a 510,600-room global pipeline.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Hilton delivered strong bottom-line performance in the quarter, underscoring the strength and resilience of its business model. However, top-line results were modestly impacted by unfavorable holiday and calendar shifts, reduced government spending, softer international inbound travel and broader economic uncertainty. Despite these temporary headwinds, the company remains optimistic about the economic outlook. With improving travel demand and limited industry supply growth, Hilton expects stronger RevPAR performance in the upcoming periods.
Hilton’s Q2 Results in Detail
Hilton reported adjusted earnings per share (EPS) of $2.20, which beat the Zacks Consensus Estimate of $2.04. In the year-ago quarter, it reported an adjusted EPS of $1.91.
Total revenues of $3.14 billion beat the consensus mark of $3.08 billion, and increased 6.3% on a year-over-year basis.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
The quarter’s franchise and licensing fees improved year over year to $745 million from $689 million reported in the prior-year quarter. Our estimate for the metric was $745 million.
Base and other management fees increased year over year to $97 million from $93 million reported in the prior-year quarter. Incentive management fees were up 10.3% year over year to $75 million. Our model projected base and other management and incentive management fees to be $92.8 million and $67.8 million, respectively.
Ownership revenues were $332 million compared with the year-ago quarter’s level of $337 million. We expected the metric to be $329.5 million.
HLT’s RevPAR & Adjusted EBITDA
In the second quarter, the system-wide comparable RevPAR declined 0.5% year over year (on a currency-neutral basis), owing to occupancy declines.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $1 billion, up 9.9% year over year. Our estimate for adjusted EBITDA was $958.7 million.
Balance Sheet of HLT
As of June 30, 2025, Hilton’s total cash and cash equivalents were $448 million compared with $807 million as of March 31, 2025. As of the second quarter, the long-term debt outstanding (including current maturities) was $10.9 billion, compared with $11.15 billion as of Dec. 31, 2024.
In second-quarter 2025, the company repurchased 3.2 million of its common stock for $235.36 per share. It paid dividends worth $36 million during the quarter.
Management declared a quarterly cash dividend of 15 cents per share, which will be payable on Aug. 29, 2025, to its shareholders of record as of Sept. 30.
Hilton’s Business Updates
In the second quarter of 2025, Hilton added 221 hotels, comprising 26,100 rooms and achieved net room growth of 22,600. The company continued to expand its portfolio of luxury and lifestyle brands. Key openings included the Sax Paris, LXR Hotels & Resorts — marking the brand’s debut in central Paris — the Marcus Portrush under the Tapestry Collection by Hilton in Northern Ireland, and Hotel Astoria Vienna, Curio Collection by Hilton.
Hilton also expanded its luxury and lifestyle pipeline with new signings such as NoMad Detroit and NoMad Singapore. In July, the company opened its first LivSmart Studios by Hilton in Tullahoma, TN, and celebrated the much-anticipated reopening of the iconic Waldorf Astoria New York.
As of June 30, 2025, Hilton's development pipeline comprised 3,636 hotels representing 510,600 rooms across 128 countries and territories, including 29 countries and territories where it had no existing hotels. For 2025, the company expects net unit growth to be in the range of 6-7%.
HLT’s Q3 & 2025 Outlook
For third-quarter 2025, Hilton anticipates net income to be in the range of $453-$467 million. Adjusted EBITDA is expected to be between $935 million and $955 million. It predicts adjusted EPS between $1.98 and $2.04.
For the third quarter of 2025, management forecasts system-wide RevPAR (on a currency-neutral basis) to remain flat on a year-over-year basis.
For 2025, HLT estimates net income to be in the range of $1.64-$1.68 billion compared with the previous expectation of $1.70 billion and $1.75 billion. Adjusted EBITDA is expected to be between $3.65 billion and $3.71 billion. It predicts general and administrative expenses to be in the range of $420-$430 million.
Full-year adjusted EPS is projected to be in the range of $7.83-$8.00 compared with the prior estimate of $7.76-$7.94. The capital return is anticipated to be about $3.3 billion.
Management anticipates 2025 system-wide RevPAR (on a currency-neutral basis) to be flat to up 2% year over year.
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 19.9% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.8% and 40.1%, respectively, from the year-ago levels.
Monarch Casino presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 35.2% in the year-to-date period.
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.
Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has declined 14.9% in the year-to-date period.
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.4% and 12.4%, respectively, from the year-ago period’s levels.
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Hilton's Q2 Earnings Surpass Estimates, Revenues Rise Y/Y
Key Takeaways
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Hilton delivered strong bottom-line performance in the quarter, underscoring the strength and resilience of its business model. However, top-line results were modestly impacted by unfavorable holiday and calendar shifts, reduced government spending, softer international inbound travel and broader economic uncertainty. Despite these temporary headwinds, the company remains optimistic about the economic outlook. With improving travel demand and limited industry supply growth, Hilton expects stronger RevPAR performance in the upcoming periods.
Hilton’s Q2 Results in Detail
Hilton reported adjusted earnings per share (EPS) of $2.20, which beat the Zacks Consensus Estimate of $2.04. In the year-ago quarter, it reported an adjusted EPS of $1.91.
Total revenues of $3.14 billion beat the consensus mark of $3.08 billion, and increased 6.3% on a year-over-year basis.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
Hilton Worldwide Holdings Inc. price-consensus-eps-surprise-chart | Hilton Worldwide Holdings Inc. Quote
The quarter’s franchise and licensing fees improved year over year to $745 million from $689 million reported in the prior-year quarter. Our estimate for the metric was $745 million.
Base and other management fees increased year over year to $97 million from $93 million reported in the prior-year quarter. Incentive management fees were up 10.3% year over year to $75 million. Our model projected base and other management and incentive management fees to be $92.8 million and $67.8 million, respectively.
Ownership revenues were $332 million compared with the year-ago quarter’s level of $337 million. We expected the metric to be $329.5 million.
HLT’s RevPAR & Adjusted EBITDA
In the second quarter, the system-wide comparable RevPAR declined 0.5% year over year (on a currency-neutral basis), owing to occupancy declines.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $1 billion, up 9.9% year over year. Our estimate for adjusted EBITDA was $958.7 million.
Balance Sheet of HLT
As of June 30, 2025, Hilton’s total cash and cash equivalents were $448 million compared with $807 million as of March 31, 2025. As of the second quarter, the long-term debt outstanding (including current maturities) was $10.9 billion, compared with $11.15 billion as of Dec. 31, 2024.
In second-quarter 2025, the company repurchased 3.2 million of its common stock for $235.36 per share. It paid dividends worth $36 million during the quarter.
Management declared a quarterly cash dividend of 15 cents per share, which will be payable on Aug. 29, 2025, to its shareholders of record as of Sept. 30.
Hilton’s Business Updates
In the second quarter of 2025, Hilton added 221 hotels, comprising 26,100 rooms and achieved net room growth of 22,600. The company continued to expand its portfolio of luxury and lifestyle brands. Key openings included the Sax Paris, LXR Hotels & Resorts — marking the brand’s debut in central Paris — the Marcus Portrush under the Tapestry Collection by Hilton in Northern Ireland, and Hotel Astoria Vienna, Curio Collection by Hilton.
Hilton also expanded its luxury and lifestyle pipeline with new signings such as NoMad Detroit and NoMad Singapore. In July, the company opened its first LivSmart Studios by Hilton in Tullahoma, TN, and celebrated the much-anticipated reopening of the iconic Waldorf Astoria New York.
As of June 30, 2025, Hilton's development pipeline comprised 3,636 hotels representing 510,600 rooms across 128 countries and territories, including 29 countries and territories where it had no existing hotels. For 2025, the company expects net unit growth to be in the range of 6-7%.
HLT’s Q3 & 2025 Outlook
For third-quarter 2025, Hilton anticipates net income to be in the range of $453-$467 million. Adjusted EBITDA is expected to be between $935 million and $955 million. It predicts adjusted EPS between $1.98 and $2.04.
For the third quarter of 2025, management forecasts system-wide RevPAR (on a currency-neutral basis) to remain flat on a year-over-year basis.
For 2025, HLT estimates net income to be in the range of $1.64-$1.68 billion compared with the previous expectation of $1.70 billion and $1.75 billion. Adjusted EBITDA is expected to be between $3.65 billion and $3.71 billion. It predicts general and administrative expenses to be in the range of $420-$430 million.
Full-year adjusted EPS is projected to be in the range of $7.83-$8.00 compared with the prior estimate of $7.76-$7.94. The capital return is anticipated to be about $3.3 billion.
Management anticipates 2025 system-wide RevPAR (on a currency-neutral basis) to be flat to up 2% year over year.
HLT’s Zacks Rank & Key Picks
Hilton currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc (CCL - Free Report) , Monarch Casino & Resort, Inc. (MCRI - Free Report) and Planet Fitness, Inc. (PLNT - Free Report) .
Carnival presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 19.9% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.8% and 40.1%, respectively, from the year-ago levels.
Monarch Casino presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 35.2% in the year-to-date period.
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.
Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has declined 14.9% in the year-to-date period.
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.4% and 12.4%, respectively, from the year-ago period’s levels.