We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hilton's Q2 adjusted EPS rose 4.1% Y/Y to $2.29, while revenues increased 6.5% to $3.34B.
HLT's System-wide RevPAR climbed 3.9% as occupancy rose to 74.9% and average daily rate increased 2.5%.
Hilton opened 207 hotels in Q2 and ended the quarter with a record development pipeline of 541,300 rooms.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported second-quarter 2026 results, wherein earnings met the Zacks Consensus Estimate, while revenues missed the same. The top and bottom lines increased on a year-over-year basis.
Hilton delivered solid operating performance during the quarter, driven by improving travel demand, higher system-wide RevPAR and continued expansion of its managed and franchised hotel network. Higher franchise and licensing fees supported results, while declines in ownership revenues and incentive management fees partly offset the gains. Management expects demand momentum to continue through the remainder of 2026 and into 2027.
Hilton’s Q2 Results in Detail
Hilton reported adjusted earnings per share of $2.29, in line with the Zacks Consensus Estimate. In the year-ago quarter, it reported adjusted earnings of $2.20 per share. The metric increased 4.1% year over year.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
Total revenues of $3.34 billion missed the consensus mark of $3.36 billion by 0.6%. Nonetheless, revenues increased 6.5% year over year from $3.14 billion.
The quarter’s franchise and licensing fees improved 8.5% year over year to $808 million from $745 million. Our estimate for the metric was $837.7 million.
Base and other management fees increased 2.1% to $99 million from $97 million. Our estimate for the metric was $113.4 million.
Incentive management fees declined 8% year over year to $69 million. Ownership revenues fell 6.3% to $311 million, while other revenues decreased 6.5% to $72 million. Cost reimbursement revenues increased 9.4% year over year to $1.98 billion from $1.81 billion.
HLT’s Q2 RevPAR & Adjusted EBITDA
In the second quarter, system-wide comparable RevPAR increased 3.9% year over year on a currency-neutral basis, driven by increases in both occupancy and average daily rate. Our model projected system-wide RevPAR growth of 2.1%.
Occupancy improved 1 percentage point year over year to 74.9%. Average daily rate increased 2.5% year over year to $166.97.
RevPAR in the United States increased 5.4% year over year. The metric rose 4.6% in the Americas, excluding the United States, and 4.3% in Europe. Asia-Pacific RevPAR increased 1.2%.
However, RevPAR in the Middle East and Africa declined 29.5% year over year, owing to a 16.1-percentage-point decrease in occupancy and an 8.1% decline in average daily rate.
Adjusted EBITDA were $1.05 billion, up 4.6% year over year. Adjusted EBITDA margin expanded 140 basis points year over year to 76.6%.
Net income in the second quarter increased 9% year over year to $482 million. Operating income advanced 10.3% year over year to $858 million.
HLT’s Q2 Balance Sheet
As of June 30, 2026, Hilton’s total cash and cash equivalents, including restricted cash, were $1.06 billion compared with $970 million as of Dec. 31, 2025.
As of the second quarter, the company had $13.44 billion of debt outstanding, excluding unamortized deferred financing costs and discounts, compared with $12.46 billion at 2025-end. The weighted average interest rate was 5.03%.
In May 2026, Hilton issued $1 billion aggregate principal amount of 5.5% senior notes due 2031. It used a portion of the proceeds to repay $450 million of borrowings under its revolving credit facility.
During the quarter, the company repurchased 2.9 million shares for $932 million. Total capital returns, including dividends, were $966 million during the quarter and $2.03 billion year to date through July.
Hilton’s Business Updates
In the second quarter of 2026, Hilton opened 207 hotels comprising 24,100 rooms, resulting in 21,600 net room additions. Room openings increased 50% sequentially from the first quarter of 2026.
The company achieved net unit growth of 6.1% from June 30, 2025. Hilton also approved 42,900 rooms for development during the quarter, with approvals increasing 50% sequentially.
As of June 30, 2026, Hilton’s development pipeline comprised 3,853 hotels representing 541,300 rooms across 132 countries and territories. The pipeline increased 6% year over year and reached a record level.
During the quarter, Hilton launched Undergraduate by Hilton, an upper-midscale lifestyle brand targeting college and university markets. Notable openings included Conrad Athens The Ilisian and the first three Apartment Collection by Hilton properties.
HLT’s Q3 & 2026 Outlook
For third-quarter 2026, Hilton anticipates net income between $502 million and $516 million. Adjusted EBITDA is expected to be between $1.04 billion and $1.06 billion. It predicts adjusted earnings per share between $2.28 and $2.34.
For the third quarter of 2026, management forecasts system-wide comparable RevPAR growth of approximately 4% year over year on a currency-neutral basis.
For 2026, Hilton estimates net income between $1.88 billion and $1.91 billion. Adjusted EBITDA is expected to be between $4.04 billion and $4.08 billion. It predicts adjusted earnings per share between $8.89 and $9.01.
Management anticipates full-year system-wide comparable RevPAR growth of 3-3.5% year over year. Net unit growth is expected between 6% and 7%, while capital returns are projected to be approximately $3.5 billion.
Life Time Group delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 64.7% in the year-to-date period. The Zacks Consensus Estimate for LTH’s 2026 sales and EPS implies growth of 11.3% and 18.1%, respectively, from the year-ago levels.
AMC Entertainment presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 60.9% in the year-to-date period.
The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 13.3% and 77.1%, respectively, from the year-ago levels.
Marcus currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings miss of 40.4%, on average. The stock has gained 57.9% in the year-to-date period.
The Zacks Consensus Estimate for Marcus’ 2026 sales and EPS indicates growth of 6.2% and 211.8%, respectively, from the year-ago period’s levels.
View the Zacks #1 Rank List
Image: Shutterstock
Hilton Q2 Earnings Meet Estimates, Revenues Increase Y/Y
Key Takeaways
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported second-quarter 2026 results, wherein earnings met the Zacks Consensus Estimate, while revenues missed the same. The top and bottom lines increased on a year-over-year basis.
Hilton delivered solid operating performance during the quarter, driven by improving travel demand, higher system-wide RevPAR and continued expansion of its managed and franchised hotel network. Higher franchise and licensing fees supported results, while declines in ownership revenues and incentive management fees partly offset the gains. Management expects demand momentum to continue through the remainder of 2026 and into 2027.
Hilton’s Q2 Results in Detail
Hilton reported adjusted earnings per share of $2.29, in line with the Zacks Consensus Estimate. In the year-ago quarter, it reported adjusted earnings of $2.20 per share. The metric increased 4.1% year over year.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
Hilton Worldwide Holdings Inc. price-consensus-eps-surprise-chart | Hilton Worldwide Holdings Inc. Quote
Total revenues of $3.34 billion missed the consensus mark of $3.36 billion by 0.6%. Nonetheless, revenues increased 6.5% year over year from $3.14 billion.
The quarter’s franchise and licensing fees improved 8.5% year over year to $808 million from $745 million. Our estimate for the metric was $837.7 million.
Base and other management fees increased 2.1% to $99 million from $97 million. Our estimate for the metric was $113.4 million.
Incentive management fees declined 8% year over year to $69 million. Ownership revenues fell 6.3% to $311 million, while other revenues decreased 6.5% to $72 million. Cost reimbursement revenues increased 9.4% year over year to $1.98 billion from $1.81 billion.
HLT’s Q2 RevPAR & Adjusted EBITDA
In the second quarter, system-wide comparable RevPAR increased 3.9% year over year on a currency-neutral basis, driven by increases in both occupancy and average daily rate. Our model projected system-wide RevPAR growth of 2.1%.
Occupancy improved 1 percentage point year over year to 74.9%. Average daily rate increased 2.5% year over year to $166.97.
RevPAR in the United States increased 5.4% year over year. The metric rose 4.6% in the Americas, excluding the United States, and 4.3% in Europe. Asia-Pacific RevPAR increased 1.2%.
However, RevPAR in the Middle East and Africa declined 29.5% year over year, owing to a 16.1-percentage-point decrease in occupancy and an 8.1% decline in average daily rate.
Adjusted EBITDA were $1.05 billion, up 4.6% year over year. Adjusted EBITDA margin expanded 140 basis points year over year to 76.6%.
Net income in the second quarter increased 9% year over year to $482 million. Operating income advanced 10.3% year over year to $858 million.
HLT’s Q2 Balance Sheet
As of June 30, 2026, Hilton’s total cash and cash equivalents, including restricted cash, were $1.06 billion compared with $970 million as of Dec. 31, 2025.
As of the second quarter, the company had $13.44 billion of debt outstanding, excluding unamortized deferred financing costs and discounts, compared with $12.46 billion at 2025-end. The weighted average interest rate was 5.03%.
In May 2026, Hilton issued $1 billion aggregate principal amount of 5.5% senior notes due 2031. It used a portion of the proceeds to repay $450 million of borrowings under its revolving credit facility.
During the quarter, the company repurchased 2.9 million shares for $932 million. Total capital returns, including dividends, were $966 million during the quarter and $2.03 billion year to date through July.
Hilton’s Business Updates
In the second quarter of 2026, Hilton opened 207 hotels comprising 24,100 rooms, resulting in 21,600 net room additions. Room openings increased 50% sequentially from the first quarter of 2026.
The company achieved net unit growth of 6.1% from June 30, 2025. Hilton also approved 42,900 rooms for development during the quarter, with approvals increasing 50% sequentially.
As of June 30, 2026, Hilton’s development pipeline comprised 3,853 hotels representing 541,300 rooms across 132 countries and territories. The pipeline increased 6% year over year and reached a record level.
During the quarter, Hilton launched Undergraduate by Hilton, an upper-midscale lifestyle brand targeting college and university markets. Notable openings included Conrad Athens The Ilisian and the first three Apartment Collection by Hilton properties.
HLT’s Q3 & 2026 Outlook
For third-quarter 2026, Hilton anticipates net income between $502 million and $516 million. Adjusted EBITDA is expected to be between $1.04 billion and $1.06 billion. It predicts adjusted earnings per share between $2.28 and $2.34.
For the third quarter of 2026, management forecasts system-wide comparable RevPAR growth of approximately 4% year over year on a currency-neutral basis.
For 2026, Hilton estimates net income between $1.88 billion and $1.91 billion. Adjusted EBITDA is expected to be between $4.04 billion and $4.08 billion. It predicts adjusted earnings per share between $8.89 and $9.01.
Management anticipates full-year system-wide comparable RevPAR growth of 3-3.5% year over year. Net unit growth is expected between 6% and 7%, while capital returns are projected to be approximately $3.5 billion.
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 Life Time Group Holdings, Inc. (LTH - Free Report) , AMC Entertainment Holdings, Inc. (AMC - Free Report) and The Marcus Corporation (MCS - Free Report) .
Life Time Group presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Life Time Group delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 64.7% in the year-to-date period. The Zacks Consensus Estimate for LTH’s 2026 sales and EPS implies growth of 11.3% and 18.1%, respectively, from the year-ago levels.
AMC Entertainment presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 60.9% in the year-to-date period.
The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 13.3% and 77.1%, respectively, from the year-ago levels.
Marcus currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings miss of 40.4%, on average. The stock has gained 57.9% in the year-to-date period.
The Zacks Consensus Estimate for Marcus’ 2026 sales and EPS indicates growth of 6.2% and 211.8%, respectively, from the year-ago period’s levels.