Hilton Q4 profit beats; forecasts FY RevPAR growth of 1%-2%

Overview

• Global hospitality firm's Q4 adjusted EPS beat analyst expectations

• Hilton's development pipeline reached a record 520,500 rooms by year-end 2025

• Company repurchased 2.8 mln shares in Q4, totaling $792 mln capital return

Outlook

• Hilton projects full-year 2026 RevPAR growth of 1.0% to 2.0%

• Hilton expects 2026 net income between $1,982 mln and $2,011 mln

• Company forecasts 2026 net unit growth between 6.0% and 7.0%

Result Drivers

• REVPAR GROWTH - System-wide comparable RevPAR increased 0.5% in Q4, driven by higher ADR, though offset by lower occupancy

• DEVELOPMENT PIPELINE - Hilton's development pipeline reached a record 520,500 rooms by year-end 2025, with significant growth outside the U.S.

• FEE REVENUE INCREASE - Management and franchise fee revenues rose 7.4% in Q4, contributing to revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Hilton Worldwide Holdings Inc is $306.00, about 5.5% below its February 10 closing price of $323.70

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 29 three months ago

Press Release: ID:nBw3cWC3Ja

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