5 Must-Read Analyst Questions From Hilton's Q3 Earnings Call

Hilton’s third quarter was marked by strong revenue and profit figures that exceeded Wall Street expectations, prompting a positive market reaction. Management credited disciplined cost controls and an accelerated pace of hotel openings for offsetting softer revenue per available room (RevPAR), which was pressured by unfavorable holiday shifts, weaker U.S. government travel, and ongoing renovations. CEO Christopher Nassetta noted, “Our capital-light business model delivered solid bottom-line performance even as industry RevPAR softened.” Hilton’s ability to grow net units and maintain operating margin improvement was central to its performance this quarter.

Is now the time to buy HLT? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Hilton’s Q3 Earnings Call

• Shaun Clisby Kelley (Bank of America) asked how Hilton can maintain cost discipline if top-line growth remains soft. CEO Christopher Nassetta explained that AI and process redesigns offer new avenues for efficiency, ensuring Hilton can deliver operating leverage even with modest revenue growth.
• Stephen Grambling (Morgan Stanley) inquired about Hilton's AI partnerships and internal use cases. Nassetta outlined three primary areas: process efficiency, marketing/distribution improvements, and customer experience enhancements, noting that Hilton is testing 41 AI use cases.
• Daniel Brian Politzer (JPMorgan) requested a breakdown of net unit growth between conversions and new brands. CFO Kevin Jacobs responded that conversion momentum is expected to remain strong and will account for nearly 40% of new hotel openings in 2025.
• David Brian Katz (Jefferies) questioned Hilton’s strategy in the luxury segment given increasing costs. Nassetta highlighted the “halo effect” of luxury brands, emphasizing disciplined investment and confidence in ongoing profitability, especially following the SLH deal.
• Robin Margaret Farley (UBS) probed whether growth in emerging markets and economy brands would dilute fee revenue per room. Jacobs reassured that fee rates are stable or rising as Hilton expands, particularly with higher-fee midmarket and premium brands in new regions.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will be monitoring (1) whether Hilton can sustain its accelerated pace of hotel openings and conversions amid a complex macroeconomic backdrop, (2) the extent to which AI-driven efficiencies materialize in both cost structure and guest satisfaction, and (3) the impact of large-scale events and easier year-over-year comparisons on RevPAR trends. Execution on technology initiatives and continued pipeline growth will also be critical signposts.

Hilton currently trades at $260, down from $266.33 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.