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Hilton reported Q1 EPS beat estimates while revenues missed, with both rising year over year.
HLT saw RevPAR rise 3.6%, added hotels and expanded pipeline to 527,000 rooms globally.
Hilton raised its 2026 RevPAR outlook to 2-3% and projects EPS of $8.79 to $8.91.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported first-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same. The top and bottom lines increased on a year-over-year basis. Following the announcement, the company’s shares declined 1.9% in the pre-market trading session.
Hilton’s first-quarter 2026 results were supported by steady demand trends, year-over-year RevPAR growth and continued expansion of its global footprint. The company added new hotels during the quarter and delivered solid net unit growth while maintaining a robust development pipeline that provides strong long-term visibility. Continued expansion of its brand portfolio, along with the launch of Select by Hilton, also contributed positively to overall performance.
Hilton’s Q1 Results in Detail
Hilton reported adjusted earnings per share (EPS) of $2.01, which beat the Zacks Consensus Estimate of $1.96 by 2.6%. In the year-ago quarter, it reported an adjusted EPS of $1.72.
Total revenues of $2.94 billion missed the consensus mark of $2.98 billion by 1.3% and increased 9.0% on a year-over-year basis.
The quarter’s franchise and licensing fees improved year over year to $696 million from $625 million reported in the prior-year quarter. Our estimate for the metric was $630.6 million.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
Base and other management fees increased year over year to $95 million from $88 million reported in the prior-year quarter. Incentive management fees were up 5.6% year over year to $76 million. Our model projected base and other management and incentive management fees to be $91.1 million and $93.9 million, respectively.
Ownership revenues were $249 million compared with the year-ago quarter’s level of $234 million. We expected the metric to be $231.5 million.
HLT’s RevPAR & Adjusted EBITDA
In the first quarter, the system-wide comparable RevPAR increased 3.6% year over year (on a currency-neutral basis).
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $901 million, up 13.3% year over year from $795 million reported in the prior-year quarter. Our estimate for adjusted EBITDA was $887.2 million.
Hilton’s Balance Sheet & Capital Return
As of March 31, 2026, Hilton’s total cash and cash equivalents were $619 million compared with $970 million as of Dec. 31, 2025. Hilton carried $12.5 billion in total debt, with a weighted average interest rate of about 5%. Excluding finance lease obligations, total debt stood at $12.1 billion, also at a 5.01% average rate, with no significant maturities before April 2027. The company noted it has sufficient liquidity and access to capital markets to comfortably meet upcoming debt obligations.
In first-quarter 2026, HLT repurchased 2.7 million of its common stock, bringing total capital return, including dividends, to $860 million for the quarter and $1.08 billion year to date through April.
Hilton’s Unit Growth and Brand Expansion
In the first quarter of 2026, Hilton added 131 hotels totaling 16,300 rooms and achieved net room growth of about 10,900 rooms. During the quarter, the company continued to expand its global presence through notable openings and signings across key markets.
In the quarter, Hilton grew its development pipeline by 26,200 rooms. As of March 31, 2026, the pipeline included 3,768 hotels with about 527,000 rooms across 129 countries and territories. Nearly half of these rooms are already under construction and more than half are located outside the United States, supporting long-term growth visibility.
During the quarter, Hilton announced the launch of a new brand, Select by Hilton, which integrates independent lifestyle brands into the system, expanding its presence in the segment.
HLT’s Q2 Outlook
For the second quarter of 2026, management forecasts system-wide comparable RevPAR (on a currency-neutral basis) to increase in the range of 2% to 3% on a year-over-year basis.
Hilton anticipates net income to be in the range of $491-$505 million. Adjusted EBITDA is expected to be between $1,015 million and $1,035 million. It predicts adjusted EPS between $2.18 and $2.24.
HLT Raises 2026 Outlook
Hilton raised its full-year 2026 outlook, reflecting improving demand trends and stronger-than-expected performance. The company now expects system-wide comparable RevPAR (on a currency-neutral basis) growth in the range of 2% to 3%. This compares favorably with its previous expectation of 1% to 2% growth, indicating a notable upward revision driven by sustained momentum across key markets.
Net income is projected to be in the range of $1.91-$1.94 billion compared with the earlier expectation of $1.98-$2.01 billion. Adjusted EBITDA is expected between $4.02 billion and $4.06 billion compared with the prior range of $4.00 billion to $4.04 billion.
Full-year adjusted EPS is projected to be in the range of $8.79-$8.91 compared with the earlier expectation of $8.65-$8.77. Capital return is anticipated to be approximately $3.5 billion.
The company delivered a trailing four-quarter earnings surprise of 262.7%, on average. The consensus estimate for GDEV’s 2026 sales and EPS implies growth of 6.4% and 23.8%, respectively, from the year-ago levels.
Accel Entertainment carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 23.4%, on average.
The consensus estimate for Accel Entertainment’s 2026 sales and EPS implies growth of 5.1% and 15%, respectively, from the year-ago levels.
Take-Two Interactive holds a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 58.9%, on average.
The Zacks Consensus Estimate for Take-Two Interactive’s 2026 sales and EPS indicates growth of 18.2% and 90.7%, respectively, from the year-ago levels.
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Hilton Q1 Earnings Beat Estimates on RevPAR Growth, 2026 View Raised
Key Takeaways
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported first-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same. The top and bottom lines increased on a year-over-year basis. Following the announcement, the company’s shares declined 1.9% in the pre-market trading session.
Hilton’s first-quarter 2026 results were supported by steady demand trends, year-over-year RevPAR growth and continued expansion of its global footprint. The company added new hotels during the quarter and delivered solid net unit growth while maintaining a robust development pipeline that provides strong long-term visibility. Continued expansion of its brand portfolio, along with the launch of Select by Hilton, also contributed positively to overall performance.
Hilton’s Q1 Results in Detail
Hilton reported adjusted earnings per share (EPS) of $2.01, which beat the Zacks Consensus Estimate of $1.96 by 2.6%. In the year-ago quarter, it reported an adjusted EPS of $1.72.
Total revenues of $2.94 billion missed the consensus mark of $2.98 billion by 1.3% and increased 9.0% on a year-over-year basis.
The quarter’s franchise and licensing fees improved year over year to $696 million from $625 million reported in the prior-year quarter. Our estimate for the metric was $630.6 million.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
Hilton Worldwide Holdings Inc. price-consensus-eps-surprise-chart | Hilton Worldwide Holdings Inc. Quote
Base and other management fees increased year over year to $95 million from $88 million reported in the prior-year quarter. Incentive management fees were up 5.6% year over year to $76 million. Our model projected base and other management and incentive management fees to be $91.1 million and $93.9 million, respectively.
Ownership revenues were $249 million compared with the year-ago quarter’s level of $234 million. We expected the metric to be $231.5 million.
HLT’s RevPAR & Adjusted EBITDA
In the first quarter, the system-wide comparable RevPAR increased 3.6% year over year (on a currency-neutral basis).
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $901 million, up 13.3% year over year from $795 million reported in the prior-year quarter. Our estimate for adjusted EBITDA was $887.2 million.
Hilton’s Balance Sheet & Capital Return
As of March 31, 2026, Hilton’s total cash and cash equivalents were $619 million compared with $970 million as of Dec. 31, 2025. Hilton carried $12.5 billion in total debt, with a weighted average interest rate of about 5%. Excluding finance lease obligations, total debt stood at $12.1 billion, also at a 5.01% average rate, with no significant maturities before April 2027. The company noted it has sufficient liquidity and access to capital markets to comfortably meet upcoming debt obligations.
In first-quarter 2026, HLT repurchased 2.7 million of its common stock, bringing total capital return, including dividends, to $860 million for the quarter and $1.08 billion year to date through April.
Hilton’s Unit Growth and Brand Expansion
In the first quarter of 2026, Hilton added 131 hotels totaling 16,300 rooms and achieved net room growth of about 10,900 rooms. During the quarter, the company continued to expand its global presence through notable openings and signings across key markets.
In the quarter, Hilton grew its development pipeline by 26,200 rooms. As of March 31, 2026, the pipeline included 3,768 hotels with about 527,000 rooms across 129 countries and territories. Nearly half of these rooms are already under construction and more than half are located outside the United States, supporting long-term growth visibility.
During the quarter, Hilton announced the launch of a new brand, Select by Hilton, which integrates independent lifestyle brands into the system, expanding its presence in the segment.
HLT’s Q2 Outlook
For the second quarter of 2026, management forecasts system-wide comparable RevPAR (on a currency-neutral basis) to increase in the range of 2% to 3% on a year-over-year basis.
Hilton anticipates net income to be in the range of $491-$505 million. Adjusted EBITDA is expected to be between $1,015 million and $1,035 million. It predicts adjusted EPS between $2.18 and $2.24.
HLT Raises 2026 Outlook
Hilton raised its full-year 2026 outlook, reflecting improving demand trends and stronger-than-expected performance. The company now expects system-wide comparable RevPAR (on a currency-neutral basis) growth in the range of 2% to 3%. This compares favorably with its previous expectation of 1% to 2% growth, indicating a notable upward revision driven by sustained momentum across key markets.
Net income is projected to be in the range of $1.91-$1.94 billion compared with the earlier expectation of $1.98-$2.01 billion. Adjusted EBITDA is expected between $4.02 billion and $4.06 billion compared with the prior range of $4.00 billion to $4.04 billion.
Full-year adjusted EPS is projected to be in the range of $8.79-$8.91 compared with the earlier expectation of $8.65-$8.77. Capital return is anticipated to be approximately $3.5 billion.
HLT’s Zacks Rank & Stocks to Consider
Hilton currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are GDEV Inc. (GDEV - Free Report) , Accel Entertainment, Inc. (ACEL - Free Report) and Take-Two Interactive Software, Inc. (TTWO - Free Report) .
GDEV presently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter earnings surprise of 262.7%, on average. The consensus estimate for GDEV’s 2026 sales and EPS implies growth of 6.4% and 23.8%, respectively, from the year-ago levels.
Accel Entertainment carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 23.4%, on average.
The consensus estimate for Accel Entertainment’s 2026 sales and EPS implies growth of 5.1% and 15%, respectively, from the year-ago levels.
Take-Two Interactive holds a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 58.9%, on average.
The Zacks Consensus Estimate for Take-Two Interactive’s 2026 sales and EPS indicates growth of 18.2% and 90.7%, respectively, from the year-ago levels.