Hilton Reports Second Quarter Results

MCLEAN, Va.--(BUSINESS WIRE)--Hilton Worldwide Holdings Inc. ("Hilton," "the Company," "we," "us" or "our") (NYSE: HLT) today reported its second quarter 2026 results. Highlights include:

• Diluted EPS was $2.10 for the second quarter, and diluted EPS, adjusted for special items, was $2.29
• Net income was $482 million for the second quarter
• Adjusted EBITDA was $1,054 million for the second quarter
• System-wide comparable RevPAR increased 3.9 percent, on a currency neutral basis, for the second quarter compared to the same period in 2025
• Approved 42,900 new rooms for development during the second quarter, bringing our development pipeline to 541,300 rooms as of June 30, 2026, representing growth of 6 percent from June 30, 2025
• Added 24,100 rooms to our system, resulting in 21,600 net additional rooms for the second quarter, contributing to net unit growth of 6.1 percent from June 30, 2025
• Announced the launch of a new lifestyle brand, Undergraduate by Hilton, an upper‑midscale offering designed to expand Hilton’s presence in college and university markets, in June 2026
• Issued $1.0 billion aggregate principal amount of 5.500% Senior Notes due 2031 in May 2026
• Repurchased 2.9 million shares of Hilton common stock during the second quarter, bringing total capital return, including dividends, to $966 million for the quarter and $2,034 million year to date through July
• Full year 2026 system-wide RevPAR is projected to increase between 3.0 percent and 3.5 percent on a comparable and currency neutral basis compared to 2025; full year net income is projected to be between $1,883 million and $1,911 million; full year Adjusted EBITDA is projected to be between $4,040 million and $4,080 million
• Full year 2026 capital return is projected to be approximately $3.5 billion

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We delivered strong top and bottom-line results for the second quarter, driven by the continuation of strengthening demand trends and broad-based momentum across our system, which we expect to continue for the remainder of the year and into 2027. Our disciplined development strategy continues to drive strong results, with openings and approvals both increasing 50 percent sequentially from the first quarter and our pipeline ending the quarter at a record level. We remain confident in our ability to deliver net unit growth of 6.0% to 7.0% in 2026 and beyond.”

For the three months ended June 30, 2026, system-wide comparable RevPAR increased 3.9 percent compared to the same period in 2025 due to an increase in both occupancy and ADR. Management and franchise fee revenues increased 6.4 percent compared to the same period in 2025.

For the six months ended June 30, 2026, system-wide comparable RevPAR increased 3.9 percent compared to the same period in 2025 due to an increase in both occupancy and ADR. Management and franchise fee revenues increased 8.3 percent compared to the same period in 2025.

For the three months ended June 30, 2026, diluted EPS was $2.10 and diluted EPS, adjusted for special items, was $2.29, compared to $1.84 and $2.20, respectively, for the three months ended June 30, 2025. Net income and Adjusted EBITDA were $482 million and $1,054 million, respectively, for the three months ended June 30, 2026, compared to $442 million and $1,008 million, respectively, for the three months ended June 30, 2025.

For the six months ended June 30, 2026, diluted EPS was $3.76 and diluted EPS, adjusted for special items, was $4.30, compared to $3.07 and $3.92, respectively, for the six months ended June 30, 2025. Net income and Adjusted EBITDA were $865 million and $1,955 million, respectively for the six months ended June 30, 2026, compared to $742 million and $1,803 million, respectively, for the six months ended June 30, 2025.

Kevin J. Jacobs, Executive Vice President & Chief Financial Officer, said, “Our second quarter net income and Adjusted EBITDA benefited from better-than-expected RevPAR growth and $17 million of non-RevPAR items that had previously been expected to occur in the second half of the year.”

Development

In the second quarter of 2026, we opened 207 hotels, totaling 24,100 rooms, resulting in 21,600 net room additions. Room openings were up 50 percent from the first quarter of 2026, with notable openings including the Conrad Athens The Ilisian, marking the debut of the luxury brand in Greece and the Slohh by Roach Bengaluru, Curio Collection by Hilton, marking the debut of the lifestyle brand in India. We also opened the first three Apartment Collection by Hilton properties since the brand's launch earlier this year in Salt Lake City, Austin and Atlanta. During the quarter, we signed the Waldorf Astoria Miami Beach and the Umfolozi River Hotel, Tapestry Collection by Hilton, in South Africa, further expanding the hotels in our luxury and lifestyle brand portfolios.

We added 42,900 rooms to the development pipeline during the second quarter, and, as of June 30, 2026, our development pipeline totaled 3,853 hotels representing 541,300 rooms throughout 132 countries and territories, including 26 countries and territories where we had no existing hotels. Additionally, of the rooms in the development pipeline, almost half were under construction and more than half were located outside of the U.S.

Balance Sheet and Liquidity

As of June 30, 2026, we had $13.4 billion of debt outstanding, excluding the deduction for unamortized deferred financing costs and discount, with a weighted average interest rate of 5.03 percent. Excluding all finance lease liabilities, we had $13.1 billion of debt outstanding with a weighted average interest rate of 5.04 percent and no material indebtedness that matures until April 2029, other than $600 million of outstanding Senior Notes due April 2027. We believe that we have sufficient sources of liquidity and access to debt financing to address the Senior Notes due April 2027 at or prior to their maturity date as well as all indebtedness that becomes due thereafter.

In May 2026, we issued $1.0 billion aggregate principal amount of 5.500% Senior Notes due 2031 and used a portion of the net proceeds to fully repay $450 million of outstanding borrowings under our senior secured revolving credit facility (the "Revolving Credit Facility") from earlier during the period. As of June 30, 2026, no borrowings were outstanding under our Revolving Credit Facility, which had an available borrowing capacity of $1,894 million after considering $106 million of letters of credit outstanding. Total cash and cash equivalents were $1,064 million as of June 30, 2026, including $55 million of restricted cash and cash equivalents.

In June 2026, we paid a quarterly cash dividend of $0.15 per share of common stock, for a total payment of $34 million, bringing total dividend payments for the year to $69 million. In July 2026, our board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on September 30, 2026 to holders of record of our common stock as of the close of business on August 21, 2026.

During the three months ended June 30, 2026, we repurchased 2.9 million shares of Hilton common stock at an average price per share of $326.99, for a total of $932 million. During the six months ended June 30, 2026 we repurchased 5.6 million shares of Hilton common stock at an average price per share of $314.62, returning $1,826 million of capital to shareholders, including dividends. Total capital return to shareholders, including dividends year-to-date through July, was $2,034 million.

The number of shares outstanding as of July 23, 2026 was 225.1 million.

Outlook

Share-based metrics in Hilton's outlook include actual share repurchases through the second quarter but do not include the effects of potential share repurchases thereafter.

Full Year 2026

• System-wide comparable RevPAR, on a currency neutral basis, is projected to increase between 3.0 percent and 3.5 percent compared to 2025.
  • Outlook reflects expected third quarter benefits from the World Cup and favorable calendar shifts, while the fourth quarter is expected to be affected by unfavorable calendar shifts and midterm elections.
• Diluted EPS is projected to be between $8.22 and $8.35.
• Diluted EPS, adjusted for special items, is projected to be between $8.89 and $9.01.
• Net income is projected to be between $1,883 million and $1,911 million.
• Adjusted EBITDA is projected to be between $4,040 million and $4,080 million.
• Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are projected to be approximately $300 million.
• Capital return is projected to be approximately $3.5 billion.
• General and administrative expenses are projected to be approximately $400 million.
• Net unit growth is projected to be between 6.0 percent and 7.0 percent, with the second half of 2026 expected to outperform the first half of the year.

Third Quarter 2026

• System-wide comparable RevPAR, on a currency neutral basis, is projected to increase approximately 4.0 percent compared to the third quarter of 2025.
• Diluted EPS is projected to be between $2.20 and $2.26.
• Diluted EPS, adjusted for special items, is projected to be between $2.28 and $2.34.
• Net income is projected to be between $502 million and $516 million.
• Adjusted EBITDA is projected to be between $1,035 million and $1,055 million.

Conference Call

Hilton will host a conference call to discuss second quarter of 2026 results on July 28, 2026 at 9:00 a.m. Eastern Time. Participants may listen to the live webcast by logging on to the Hilton Investor Relations website at https://ir.hilton.com/events-and-presentations. A replay and transcript of the webcast will be available within 24 hours after the live event at https://ir.hilton.com/financial-reporting.

Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States ("U.S.") or 1-412-317-6061 internationally using the conference ID 4006802. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-855-669-9658 in the U.S. or 1-412-317-0088 internationally using the conference ID 6596218.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, future financial results, liquidity and capital resources and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "forecasts," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks inherent to the hospitality industry; macroeconomic factors beyond our control, such as inflation, changes in interest rates, challenges due to labor shortages or disputes and supply chain disruptions; the loss of key senior management personnel; competition for hotel guests and management and franchise contracts; risks related to doing business with third-party hotel owners; performance of our information technology systems; growth of reservation channels outside of our system; risks of doing business outside of the U.S.; risks associated with geopolitical conflicts, including Iran; uncertainty resulting from U.S. and global political trends, tariffs and other policies, including potential barriers to travel, trade and immigration and other geopolitical events; and our indebtedness. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I—Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which is filed with the Securities and Exchange Commission (the "SEC") and is accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Definitions

See the "Definitions" section for the definition of certain terms used within this press release, including within the schedules.

Non-GAAP Financial Measures

We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including: net income, adjusted for special items; diluted EPS, adjusted for special items; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA ratio. See the schedules to this press release, including the "Definitions" section, for additional information and reconciliations of such non-GAAP financial measures, as well as the most comparable GAAP financial measures.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 28 world-class brands comprising more than 9,400 properties and nearly 1.4 million rooms, in 144 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 4 billion guests in its more than 100-year history. Named as the No. 1 World's Best Workplace by Great Place to Work and Fortune, Hilton aims to create the best culture for its 500,000 team members around the world. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the 260 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on facebook.com/hiltonnewsroom, x.com/hiltonnewsroom, linkedin.com/company/hilton, instagram.com/hiltonnewsroom and youtube.com/@hilton.

Investor Contact
Charlie Ruehr
+1 703 883 1000

Media Contact
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