Hilton Reports Second Quarter Results

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:

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

Third Quarter 2026

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.

HILTON WORLDWIDE HOLDINGS INC.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

Condensed Consolidated Statements of Operations

Comparable and Currency Neutral System-Wide Hotel Operating Statistics

Property Summary

Capital Expenditures and Contract Acquisition Costs

Reconciliations of Non-GAAP Financial Measures

Definitions

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Revenues

Franchise and licensing fees

808

745

1,504

1,370

Base and other management fees

194

185

Incentive management fees

145

147

Ownership

311

332

560

566

Other revenues

138

123

1,359

1,326

2,541

2,391

Cost reimbursement revenues

1,982

1,811

3,737

3,441

Total revenues

3,341

3,137

6,278

5,832

Expenses

Ownership

266

286

501

525

Depreciation and amortization

General and administrative

114

109

217

203

Other expenses

475

464

885

864

Reimbursed expenses

2,008

1,895

3,857

3,654

Total expenses

2,483

2,359

4,742

4,518

Operating income

858

778

1,536

1,314

Interest expense

(183

)

(151

)

(345

)

(296

)

Gain (loss) on foreign currency transactions

)

(12

)

Other non-operating income, net

Income before income taxes

680

629

1,198

1,039

Income tax expense

(198

)

(187

)

(333

)

(297

)

Net income

482

442

865

742

Net loss (income) attributable to redeemable and nonredeemable noncontrolling interests

—

)

Net income attributable to Hilton stockholders

482

440

867

740

Weighted average shares outstanding:

Basic

227

237

228

239

Diluted

229

239

230

241

Earnings per share:

Basic

2.12

1.85

3.80

3.10

Diluted

2.10

1.84

3.76

3.07

Cash dividends declared per share

0.15

0.30

HILTON WORLDWIDE HOLDINGS INC.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY REGION, BRAND AND SEGMENT

(unaudited)

Three Months Ended June 30,

Occupancy

ADR

RevPAR

2026

vs. 2025

2026

vs. 2025

2026

vs. 2025

System-wide

74.9

1.0

pts.

166.97

2.5

125.02

3.9

Region

U.S.

77.3

1.6

pts.

180.16

3.2

139.28

5.4

Americas (excluding U.S.)

68.6

0.4

157.79

3.9

108.32

4.6

Europe

78.3

1.6

182.96

2.2

143.28

4.3

Middle East & Africa

53.0

(16.1

)

176.72

(8.1

)

93.65

(29.5

)

Asia Pacific

68.6

1.0

97.42

(0.3

)

66.80

1.2

Brand (1)

Waldorf Astoria Hotels & Resorts

63.2

(2.8

pts.

488.62

3.2

308.75

(1.1

Conrad Hotels & Resorts

71.5

(2.1

)

291.96

3.0

208.61

—

LXR Hotels & Resorts

61.4

(1.0

)

487.73

7.5

299.43

5.8

Canopy by Hilton

76.3

(0.1

)

246.56

3.1

188.13

2.9

Hilton Hotels & Resorts

72.8

0.7

200.21

1.9

145.67

2.9

Curio Collection by Hilton

74.2

1.6

255.32

2.4

189.55

4.6

Graduate by Hilton

70.2

2.6

240.78

4.8

169.03

8.8

DoubleTree by Hilton

72.1

0.6

155.22

2.6

111.84

3.5

Tapestry Collection by Hilton

72.9

2.6

202.37

2.9

147.62

6.6

Embassy Suites by Hilton

79.1

1.4

196.97

3.3

155.87

5.2

Motto by Hilton

83.3

(0.2

)

245.40

2.8

204.36

2.6

Hilton Garden Inn

73.7

0.5

149.23

2.6

109.94

3.3

Hampton by Hilton

75.0

0.8

135.80

2.8

101.83

3.9

Tru by Hilton

76.5

1.4

137.78

3.2

105.43

5.1

Homewood Suites by Hilton

83.4

1.7

171.24

2.8

142.87

4.9

Home2 Suites by Hilton

79.9

2.5

142.44

2.6

113.79

5.9

Segment

Management and franchise

74.8

1.0

pts.

166.35

2.6

124.47

4.0

Ownership (2)

79.5

1.2

222.48

(4.8

)

176.94

(3.4

)

HILTON WORLDWIDE HOLDINGS INC.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY REGION, BRAND AND SEGMENT

(unaudited)

Six Months Ended June 30,

Occupancy

ADR

RevPAR

2026

vs. 2025

2026

vs. 2025

2026

vs. 2025

System-wide

71.3

1.3

pts.

162.51

2.0

115.93

3.9

Region

U.S.

73.2

1.6

pts.

174.72

2.3

127.93

4.7

Americas (excluding U.S.)

66.3

0.9

157.97

3.3

104.78

4.8

Europe

72.2

2.0

168.31

2.5

121.51

5.5

Middle East & Africa

58.6

(10.0

)

201.45

(0.4

)

118.09

(15.0

)

Asia Pacific

66.7

1.6

99.57

0.5

66.45

2.9

Brand (1)

Waldorf Astoria Hotels & Resorts

64.7

(0.8

pts.

492.15

1.2

318.36

(0.1

Conrad Hotels & Resorts

72.0

(0.8

)

295.63

2.3

212.98

1.2

LXR Hotels & Resorts

64.5

4.0

506.30

5.9

326.76

12.9

Canopy by Hilton

72.8

1.3

236.44

2.5

172.08

4.4

Hilton Hotels & Resorts

70.0

1.2

198.24

1.8

138.83

3.6

Curio Collection by Hilton

71.8

2.4

250.68

2.2

179.93

5.8

Graduate by Hilton

64.5

2.2

222.12

3.0

143.24

6.7

DoubleTree by Hilton

68.5

1.1

149.94

2.2

102.74

3.9

Tapestry Collection by Hilton

68.8

3.5

193.00

2.6

132.71

8.0

Embassy Suites by Hilton

75.9

1.5

191.96

2.3

145.74

4.3

Motto by Hilton

78.8

0.4

210.44

1.3

165.74

1.8

Hilton Garden Inn

69.6

0.8

143.24

1.8

99.72

3.0

Hampton by Hilton

70.8

1.0

130.06

2.1

92.07

3.5

Tru by Hilton

71.6

1.2

131.92

2.7

94.41

4.5

Homewood Suites by Hilton

80.1

1.7

163.78

1.9

131.11

4.0

Home2 Suites by Hilton

76.6

2.6

138.32

2.0

105.98

5.6

Segment

Management and franchise

71.3

1.3

pts.

161.97

2.1

115.48

4.0

Ownership (2)

74.7

2.8

211.55

(3.2

)

158.05

0.6

____________

(1)

Excludes brands for which a significant number of the hotels were designated as non-comparable hotels as of the end of the period so as to make comparative statistics for such brand not meaningful.

(2)

Includes hotels owned or leased by entities in which we own a noncontrolling financial interest.

HILTON WORLDWIDE HOLDINGS INC.

PROPERTY SUMMARY

As of June 30, 2026

Ownership (1)

Managed

Franchised / Licensed

Total

Properties

Rooms

Properties

Rooms

Properties

Rooms

Properties

Rooms

Waldorf Astoria Hotels & Resorts

463

9,299

—

9,762

Conrad Hotels & Resorts

164

14,121

3,057

17,342

LXR Hotels & Resorts

—

1,155

1,670

2,825

NoMad

—

Signia Hilton

—

4,293

—

4,293

Canopy by Hilton

—

2,699

6,103

8,802

Hilton Hotels & Resorts

14,659

312

130,546

271

84,155

626

229,360

Curio Collection by Hilton

—

7,232

175

31,851

208

39,083

Graduate by Hilton

—

5,881

DoubleTree by Hilton

—

170

45,480

548

114,925

718

160,405

Tapestry Collection by Hilton

—

2,971

197

23,141

206

26,112

Embassy Suites by Hilton

—

9,498

232

52,000

268

61,498

Tempo by Hilton

—

661

1,350

2,011

Outset Collection by Hilton

—

523

Motto by Hilton

—

2,547

Hilton Garden Inn

—

135

26,846

1,030

145,851

1,165

172,697

Hampton by Hilton

—

7,750

3,182

357,019

3,230

364,769

Tru by Hilton

—

1,565

340

32,928

354

34,493

Spark by Hilton

—

329

274

23,961

275

24,290

Homewood Suites by Hilton

—

928

555

63,781

562

64,709

Home2 Suites by Hilton

—

210

911

100,689

913

100,899

LivSmart Studios by Hilton

—

339

Apartment Collection by Hilton

—

764

Strategic partner hotels (2)

—

562

26,124

562

26,124

Other (3)

—

803

3,019

3,822

Total hotels

15,286

882

266,477

8,404

1,081,678

9,332

1,363,441

Hilton Grand Vacations (4)

—

121

21,401

121

21,401

Total system

15,286

882

266,477

8,525

1,103,079

9,453

1,384,842

Ownership (1)

Managed

Franchised / Licensed

Total

Properties

Rooms

Properties

Rooms

Properties

Rooms

Properties

Rooms

U.S.

—

175

78,529

6,151

784,690

6,326

863,219

Americas (excluding U.S.)

405

17,836

450

57,229

518

75,470

Europe

10,661

108

26,258

809

96,288

954

133,207

Middle East & Africa

1,376

120

34,457

6,856

170

42,689

Asia Pacific

2,844

412

109,397

947

136,615

1,364

248,856

Total hotels

15,286

882

266,477

8,404

1,081,678

9,332

1,363,441

Hilton Grand Vacations (4)

—

121

21,401

121

21,401

Total system

15,286

882

266,477

8,525

1,103,079

9,453

1,384,842

____________

(1)

Includes hotels owned or leased by entities in which we own a noncontrolling financial interest.

(2)

Includes hotels that are included in our booking channels and participate in the Hilton Honors guest loyalty program through strategic partnership arrangements.

(3)

Includes other hotels in our system that are not distinguished by a specific Hilton brand.

(4)

Includes properties under our timeshare brands including Hilton Club, Hilton Grand Vacations Club and Hilton Vacation Club.

HILTON WORLDWIDE HOLDINGS INC.

CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS

(dollars in millions)

(unaudited)

Three Months Ended

June 30,

Increase / (Decrease)

2026

2025

Capital expenditures for property and equipment (1)

(11

)

(47.8)

Capitalized software costs (2)

25.0

Total capital expenditures

)

(14.0)

Contract acquisition costs, net of refunds

21.4

Total capital expenditures and contract acquisition costs

3.5

Six Months Ended

June 30,

Increase / (Decrease)

2026

2025

Capital expenditures for property and equipment (1)

(21

)

(50.0)

Capitalized software costs (2)

14.6

Total capital expenditures

(15

)

(18.1)

Contract acquisition costs, net of refunds

6.9

Total capital expenditures and contract acquisition costs

145

155

(10

)

(6.5)

___________

(1)

Represents expenditures for hotels, corporate and other property and equipment, which include amounts reimbursed by third parties of $6 million and $10 million for the three months ended June 30, 2026 and 2025, respectively, and $12 million and $22 million for the six months ended June 30, 2026 and 2025, respectively. Excludes expenditures for FF&E replacement reserves of $13 million and $19 million for the three months ended June 30, 2026 and 2025, respectively, and $23 million and $32 million for the six months ended June 30, 2026 and 2025, respectively.

(2)

Includes $24 million and $18 million of expenditures that were reimbursed to us by third parties for the three months ended June 30, 2026 and 2025, respectively, and $44 million and $38 million for the six months ended June 30, 2026 and 2025, respectively.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS

(in millions, except per share data)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Net income attributable to Hilton stockholders, as reported

482

440

867

740

Diluted EPS, as reported

2.10

1.84

3.76

3.07

Special items:

Cost reimbursement revenues (1)

(1,982

)

(1,811

)

(3,737

)

(3,441

)

Reimbursed expenses (1)

2,008

1,895

3,857

3,654

FF&E replacement reserves

Tax-related adjustments (2)

Other adjustments (3)

Total special items before taxes

115

162

269

Income tax expense on special items

(13

)

(28

)

(39

)

(64

)

Total special items after taxes

123

205

Net income, adjusted for special items

524

527

990

945

Diluted EPS, adjusted for special items

2.29

2.20

4.30

3.92

____________

(1)

Amounts include results from the operation of programs conducted for the benefit of property owners and exclude cash receipts recorded as deferred revenues on our condensed consolidated balance sheets related to these programs. Under the terms of the related contracts, we do not operate these programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures.

(2)

Amounts include income tax expenses (benefits) related to the enactment of new tax laws and certain changes in unrecognized tax expenses (benefits).

(3)

Amounts for the three and six months ended June 30, 2025 include expected future credit losses on financing receivables, which were recognized in other non-operating income, net. Amount for the six months ended June 30, 2025 includes restructuring costs related to one of our leased hotels, which were recognized in ownership expenses. Amounts for all periods include losses (gains) related to severance and other items, including non-cash charges, which are recognized in various line items, such as net losses (gains) related to certain of our investments in unconsolidated affiliates, which were recognized in other non-operating income, net and the amortization expense related to finite-lived intangible assets that were recorded at fair value in 2007 when the Company became a wholly owned subsidiary of affiliates of Blackstone Inc., which was recognized in depreciation and amortization expenses.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

NET INCOME MARGIN AND

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

(dollars in millions)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Net income

482

442

865

742

Interest expense

183

151

345

296

Income tax expense

198

187

333

297

Depreciation and amortization expenses

Loss (gain) on foreign currency transactions

)

FF&E replacement reserves

Share-based compensation expense

106

Amortization of contract acquisition costs

Cost reimbursement revenues (1)

(1,982

)

(1,811

)

(3,737

)

(3,441

)

Reimbursed expenses (1)

2,008

1,895

3,857

3,654

Other adjustments (2)

Adjusted EBITDA

1,054

1,008

1,955

1,803

____________

(1)

(2)

Amounts for the three and six months ended June 30, 2025 include expected future credits losses on financing receivables. Amount for the six months ended June 30, 2025 also includes restructuring costs related to one of our leased hotels. Amounts for all periods include losses (gains) related to severance and other items, including non-cash charges, such as net losses (gains) related to certain of our investments in unconsolidated affiliates.

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Total revenues, as reported

3,341

3,137

6,278

5,832

Add: amortization of contract acquisition costs

Less: cost reimbursement revenues (1)

(1,982

)

(1,811

)

(3,737

)

(3,441

)

Total revenues, as adjusted

1,376

1,339

2,573

2,418

Net income

482

442

865

742

Net income margin

14.4

14.1

13.8

12.7

Adjusted EBITDA

1,054

1,008

1,955

1,803

Adjusted EBITDA margin

76.6

75.2

76.0

74.6

____________

(1)

Amounts include revenues from the operation of programs conducted for the benefit of property owners and exclude cash receipts recorded as deferred revenues on our condensed consolidated balance sheets related to these programs. Under the terms of the related contracts, we do not operate these programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

LONG-TERM DEBT TO NET INCOME RATIO AND

NET DEBT AND NET DEBT TO ADJUSTED EBITDA RATIO

(dollars in millions)

(unaudited)

June 30,

December 31,

2026

2025

Long-term debt, including current maturities

13,343

12,363

Add: unamortized deferred financing costs and discount

101

Long-term debt, including current maturities and excluding the deduction for unamortized deferred financing costs and discount

13,444

12,459

Less: cash and cash equivalents

(1,009

)

(918

)

Less: restricted cash and cash equivalents

(55

)

(52

)

Net debt

12,380

11,489

Six Months Ended

Year Ended

TTM Ended

June 30,

December 31,

June 30,

2026

2025

2026

Net income

865

742

1,461

1,584

Interest expense

345

296

620

669

Income tax expense

333

297

611

647

Depreciation and amortization expenses

177

192

Loss (gain) on foreign currency transactions

)

FF&E replacement reserves

Share-based compensation expense

106

170

185

Amortization of contract acquisition costs

Cost reimbursement revenues (1)

(3,737

)

(3,441

)

(7,085

)

(7,381

)

Reimbursed expenses (1)

3,857

3,654

7,550

7,753

Other adjustments (2)

Adjusted EBITDA

1,955

1,803

3,725

3,877

Long-term debt

13,343

Long-term debt to net income ratio

8.4

Net debt

12,380

Net debt to Adjusted EBITDA ratio

3.2

____________

(1)

(2)

Amounts for six months ended June 30, 2025 and year ended December 31, 2025 include expected future credit losses on financing receivables and restructuring costs related to one of our leased hotels. Amount for the year ended December 31, 2025 also includes losses for the partial settlement of one of our pension plans. Amounts for all periods include losses (gains) related to severance and other items, including non-cash charges, such as net losses (gains) related to certain of our investments in unconsolidated affiliates.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

OUTLOOK: NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS

(in millions, except per share data)

(unaudited)

Three Months Ending

September 30, 2026

Low Case

High Case

Net income attributable to Hilton stockholders

502

516

Diluted EPS (1)

2.20

2.26

Special items (2):

FF&E replacement reserves

Other adjustments

Total special items before taxes

Income tax expense on special items

)

Total special items after taxes

Net income, adjusted for special items

519

533

Diluted EPS, adjusted for special items (1)

2.28

2.34

Year Ending

December 31, 2026

Low Case

High Case

Net income attributable to Hilton stockholders

1,884

1,912

Diluted EPS (1)

8.22

8.35

Special items (2):

Cost reimbursement revenues

(3,737

)

(3,737

)

Reimbursed expenses

3,857

FF&E replacement reserves

Tax related adjustments

Other adjustments

Total special items before taxes

201

Income tax expense on special items

(48

)

(48

)

Total special items after taxes

153

Net income, adjusted for special items

2,037

2,065

Diluted EPS, adjusted for special items (1)

8.89

9.01

____________

(1)

Does not include the effect of share repurchases made after June 30, 2026.

(2)

See "—Net Income and Diluted EPS, Adjusted for Special Items" for details of these special items.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

OUTLOOK: NET INCOME AND ADJUSTED EBITDA

(in millions)

(unaudited)

Three Months Ending

September 30, 2026

Low Case

High Case

Net income

502

516

Interest expense

185

Income tax expense

209

215

Depreciation and amortization expenses

FF&E replacement reserves

Share-based compensation expense

Amortization of contract acquisition costs

Other adjustments (1)

Adjusted EBITDA

1,035

1,055

Year Ending

December 31, 2026

Low Case

High Case

Net income

1,883

1,911

Interest expense

726

Income tax expense

756

768

Depreciation and amortization expenses

202

Loss on foreign currency transactions

FF&E replacement reserves

Share-based compensation expense

194

Amortization of contract acquisition costs

Cost reimbursement revenues

(3,737

)

(3,737

)

Reimbursed expenses

3,857

Other adjustments (1)

Adjusted EBITDA

4,040

4,080

____________

(1)

See "—Net Income Margin and Adjusted EBITDA and Adjusted EBITDA Margin" for details of these adjustments.

HILTON WORLDWIDE HOLDINGS INC.

DEFINITIONS

Trailing Twelve Month Financial Information

This press release includes certain unaudited financial information for the trailing twelve months ("TTM") ended June 30, 2026, which is calculated as the six months ended June 30, 2026 plus the year ended December 31, 2025 less the six months ended June 30, 2025. This presentation is not in accordance with GAAP. However, we believe that this presentation provides useful information to investors regarding our recent financial performance, and we view this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess our historical results. In addition, our management uses TTM information to evaluate our financial performance for ongoing planning purposes.

Net Income (Loss), Adjusted for Special Items, and Diluted EPS, Adjusted for Special Items

Net income (loss), adjusted for special items is calculated as net income (loss) attributable to Hilton stockholders, as reported, plus total special items after taxes. Net income (loss), adjusted for special items, and diluted earnings (loss) per share ("EPS"), adjusted for special items, are not recognized terms under GAAP and should not be considered as alternatives to net income (loss), diluted EPS or other measures of financial performance or liquidity derived in accordance with GAAP. In addition, our definition of net income (loss), adjusted for special items, and diluted EPS, adjusted for special items, may not be comparable to similarly titled measures of other companies.

Net income (loss), adjusted for special items, and diluted EPS, adjusted for special items, are included to assist investors in performing meaningful comparisons of past, present and future operating results and as a means of highlighting the results of our ongoing operations.

Adjusted EBITDA, Net Income (Loss) Margin and Adjusted EBITDA Margin

Adjusted EBITDA is calculated as net income (loss), excluding interest expense, a provision for income tax benefit (expense) and depreciation and amortization expenses, as well as gains, losses, revenues and expenses earned or incurred in connection with: (i) asset dispositions for both consolidated and unconsolidated investments; (ii) foreign currency transactions; (iii) debt restructurings and retirements; (iv) furniture, fixtures and equipment ("FF&E") replacement reserves required under certain lease agreements; (v) share-based compensation; (vi) reorganization, severance, relocation and other expenses; (vii) non-cash impairment; (viii) amortization of contract acquisition costs; (ix) cost reimbursement revenues and reimbursed expenses; and (x) other items.

Net income (loss) margin represents net income (loss) as a percentage of total revenues. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of total revenues, adjusted to exclude the amortization of contract acquisition costs and cost reimbursement revenues.

We believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) these measures are used by our management team to evaluate our operating performance and make day-to-day operating decisions and (ii) these measures are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. Additionally, these measures exclude certain items that can vary widely across different industries and among competitors within our industry. For instance, interest expense and income taxes are dependent on company specifics, including, among other things, capital structure and operating jurisdictions, respectively, and, therefore, could vary significantly across companies. Depreciation and amortization expenses, as well as amortization of contract acquisition costs, are dependent upon company policies, including the method of acquiring and depreciating assets and the useful lives that are assigned to those depreciating or amortizing assets for accounting purposes. We also exclude items such as: (i) FF&E replacement reserves for leased hotels to be consistent with the treatment of capital expenditures for property and equipment, where depreciation of such capitalized assets is reported within depreciation and amortization expenses; (ii) share-based compensation, as this could vary widely among companies due to the different plans in place and the usage of them; and (iii) other items that are not reflective of our operating performance, such as amounts related to debt restructurings and debt retirements and reorganization and related severance costs, to enhance period-over-period comparisons of our ongoing operations. Further, Adjusted EBITDA excludes both cost reimbursement revenues and reimbursed expenses as we contractually do not operate the related programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures. The direct reimbursements from property owners are billable and reimbursable as the costs are incurred and have no net effect on net income (loss) in the reporting period. The indirect reimbursements from property owners are typically billed and collected monthly, based on the underlying hotel's sales or usage (e.g., gross room revenue or number of reservations processed), while the associated costs are recognized as incurred by Hilton, creating timing differences, with the net effect impacting net income (loss) in the reporting period. These timing differences are due to our discretion to spend in excess of revenues earned or less than revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our property owners. However, over the life of the operation of these programs, the expenses incurred related to the indirect reimbursements are designed to equal the revenues earned from the indirect reimbursements over time such that, in the long term, the programs will not earn a profit or generate a loss and do not impact our economics, either positively or negatively. Therefore, the net effect of our reimbursed revenues and expenses is not used by management to evaluate our operating performance, determine executive compensation or make other operating decisions, and we exclude their impact when evaluating period over period performance results.

Adjusted EBITDA and Adjusted EBITDA margin are not recognized terms under GAAP and should not be considered as alternatives, either in isolation or as a substitute, for net income (loss), net income (loss) margin or other measures of financial performance or liquidity, including cash flows, derived in accordance with GAAP. Further, Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, may not be comparable to similarly titled measures of other companies and should not be considered as other methods of analyzing our results as reported under GAAP.

Net Debt, Long-Term Debt to Net Income (Loss) Ratio and Net Debt to Adjusted EBITDA Ratio

Long-term debt to net income (loss) ratio is calculated as the ratio of Hilton's long-term debt, including current maturities, to net income (loss). Net debt is calculated as: long-term debt, including current maturities and excluding the deduction for unamortized deferred financing costs and discounts; reduced by: (i) cash and cash equivalents and (ii) restricted cash and cash equivalents. Net debt to Adjusted EBITDA ratio is calculated as the ratio of Hilton's net debt to Adjusted EBITDA. Net debt and net debt to Adjusted EBITDA ratio, presented herein, are non-GAAP financial measures that the Company uses to evaluate its financial leverage.

Net debt should not be considered as a substitute to debt presented in accordance with GAAP, and net debt to Adjusted EBITDA ratio should not be considered as an alternative to measures of financial condition derived in accordance with GAAP. Net debt and net debt to Adjusted EBITDA ratio may not be comparable to similarly titled measures of other companies. We believe net debt and net debt to Adjusted EBITDA ratio provide useful information about our indebtedness to investors as they are frequently used by securities analysts, investors and other interested parties to compare the indebtedness between companies.

Comparable Hotels

We define our comparable hotels as those that were active and operating in our system for at least one full calendar year and were open January 1st of the previous year. We exclude hotels that have undergone a change in brand or ownership type or a large-scale capital project during the current or comparable periods or otherwise do not have available comparable results, such as those that have sustained substantial property damage or encountered business interruption. We exclude strategic partner hotels from our comparable hotels. Of the 9,332 hotels in our system as of June 30, 2026, 562 hotels were strategic partner hotels and 6,808 hotels were classified as comparable hotels. Our 1,962 non-comparable hotels as of June 30, 2026 included (i) 988 hotels that were added to our system after January 1, 2025 or that have undergone a change in brand or ownership type during the current or comparable periods reported and (ii) 974 hotels that were removed from the comparable group for the current or comparable periods reported because they underwent or are undergoing large-scale capital projects, sustained substantial property damage, encountered business interruption or comparable results were otherwise not available for them.

Occupancy

Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels for a given period. Occupancy measures the utilization of available capacity at a hotel or group of hotels. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate ("ADR") pricing levels as demand for hotel rooms increases or decreases.

ADR

ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel, and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and we use ADR to assess pricing levels that we are able to generate by type of customer, as changes in rates charged to customers have different effects on overall revenues and incremental profitability than changes in occupancy, as described above.

Revenue per Available Room ("RevPAR")

RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. We consider RevPAR to be a meaningful indicator of our performance as it provides a metric correlated to two primary and key drivers of operations at a hotel or group of hotels, as previously described: occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods for comparable hotels.

References to occupancy, ADR and RevPAR are presented on a comparable basis, based on the comparable hotels as of June 30, 2026, and references to ADR and RevPAR are presented on a currency neutral basis, unless otherwise noted. As such, comparisons of these hotel operating statistics for the three and six months ended June 30, 2026 and 2025 use foreign currency exchange rates for the three and six months ended June 30, 2026, respectively.

Pipeline

Rooms under construction include rooms for hotels under construction or operating hotels that are in the process of conversion to our system.