Hilton (NYSE: $HLT) Beats Estimates for Q4 Earnings and Revenues


Hilton Worldwide Holdings Inc. (NYSE: $HLT)  is a multinational hospitality company with a broad portfolio of franchised and managed hotels, and resorts globally. Based in McLean, VA, it was founded in 1919 by Conrad Hilton, and it manages over 7,500 properties and 1.2 million rooms in 126 different countries.

On Wednesday, February 7, 2024, Hilton released its fourth quarter and fiscal 2023 full-year results before markets opened to a positive market reception. 

Quarterly and Annual Result

Hilton’s fourth quarter EPS was $1.68, surpassing the Zacks’ consensus estimate of $1.56 per share, compared to the previous year’s earnings of $1.59 per share, a surprise of 7.69%.In Q3, Hilton’s earnings per share was $1.67, in line with estimates of $1.67. Consequently, Hilton has surpassed EPS estimates 75% of the time in the past four quarters.

The company posted revenue of $2.61 billion for the fourth quarter, beating Zack Consensus Estimates by 1.52%, better than the $2.44 billion reported a year ago. Revenue available per room (RevPAR) rose by 5.6% quarterly and 12.6% yearly compared to the previous year, adjusted for currency fluctuations.

2024 Outlook

Hilton forecasts RevPAR will grow 2%-4% in 2024 on a comparable basis and adjusted for currency fluctuations compared to 2023. It projects that 2024 net income will be between $1.69 billion to $1.73 billion. The projected capital return for the full year of 2024 is approximately $3.0 billion.

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Development Pipeline

During the quarter, Hilton approved 33,800 new rooms, adding up to a record 462,400 in its development pipeline. The company added 24,000 rooms into its system in Q4, bringing the FY23 total room openings to 62,9000, a net unit growth of 4.9%. 

Hilton Announces Strategic Partnership To Grow Luxury Portfolio 

Hilton and Small Luxury Hotels of the World (SLH) announced a robust strategic partnership that will allow Hilton guests to enjoy hundreds of luxury hotels situated in highly desirable destinations worldwide.

This exclusive partnership will scale up in the coming months and will be available to all of Hilton’s customers, including its 180 million loyalty program participants. They will be able to earn points that they can redeem at one of the luxury SLH boutique hotels in 90 countries worldwide. 

Commenting on the partnership, Chris Silcock, President of Global & Commercial Services Hilton, said, “Hilton guests are among the most sophisticated travelers in the world, and we are always looking for amazing new experiences to share with them.”

He added, “This relationship with Small Luxury Hotels of the World will grant Hilton customers and Hilton Honors members access to a community of high-end boutique hotels in exciting new luxury travel destinations, giving them more ways to dream, book, and earn and redeem points with Hilton.”

More details on the partnership are expected to come out soon. 

Stock Update: HLT

HLT stock is trading at $190.98, a 3.64% from its February 6, 20204 closing price of $196.83. As of writing this, it has a market cap of $50.44 billion with a volume of 792,496.

Year-to-date, Hilton Worldwide Holdings Inc. shares have increased by approximately 6.9%, outperforming the S&P 500 index, which has gained 3.9% over the same period.

Hilton (NYSE: HLT)

Should you buy HLT?

Hilton’s recent quarterly and full-year reports have been impressive, beating consensus estimates. The strategic partnership announced by SLH could be a driver of growth for the company in 2024. Additionally, it has a lot of new openings in its development pipeline, which will further drive growth. 

Based on its strong performance throughout 2023 and analysts’ consensus moderate buy rating, HLT stock is a good addition to your portfolio as a long-term hold.  

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