# Hilton Worldwide Holdings Inc. (HLT)

Informational only - not investment advice.

CIK: 0001585689
SIC: 7011 Hotels & Motels
SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 70](/major-group/70/) > [SIC 7011 Hotels & Motels](/industry/7011/)
Latest 10-K filed: 2026-02-11
SEC page: https://www.sec.gov/edgar/browse/?CIK=1585689
Filing source: https://www.sec.gov/Archives/edgar/data/1585689/000158568926000007/hlt-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-11 · accession 0001585689-26-000007 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001585689.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 12,039,000,000 USD | 2025 | verified |
| Net income | 1,457,000,000 USD | 2025 | verified |
| Assets | 16,774,000,000 USD | 2025 | verified |
| Free cash flow | 2,028,000,000 USD | 2025 | computed |
| Net margin | 12.10% | 2025 | computed |
| Operating margin | 22.37% | 2025 | computed |
| Revenue YoY | +7.74% | 2025 | computed |

Stockholders' equity was not positive at FY2025 year-end (-5,388,000,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only).

Peer groups: [Lodging and hotel operators](/compare/lodging/) · SIC 7011 Hotels & Motels

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including HLT

- Lodging and hotel operators: [peer review](/compare/lodging/) · [market-risk page](/compare/lodging/risk/)

### Peer percentile fingerprint

| Ratio | HLT | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 12.1% | 5.8% | 71 | 18 |
| Operating margin | 22.4% | 15.8% | 79 | 15 |
| Revenue growth | 7.7% | 3.9% | 94 | 18 |
| FCF margin | 16.8% | 9.6% | 88 | 18 |
| ROA | 8.7% | 2.9% | 76 | 18 |
| Current ratio | 0.66 | 0.80 | 15 | 14 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7011 Hotels & Motels, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 12039000000 | USD | 2025 | 2026-02-11 |
| Net income | 1457000000 | USD | 2025 | 2026-02-11 |
| Assets | 16774000000 | USD | 2025 | 2026-02-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001585689.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 6,576,000,000 | 8,131,000,000 | 8,906,000,000 | 9,452,000,000 | 4,307,000,000 | 5,788,000,000 | 8,773,000,000 | 10,235,000,000 | 11,174,000,000 | 12,039,000,000 |
| Net income | 338,000,000 | 1,084,000,000 | 764,000,000 | 881,000,000 | -715,000,000 | 410,000,000 | 1,255,000,000 | 1,141,000,000 | 1,535,000,000 | 1,457,000,000 |
| Operating income | 868,000,000 | 1,132,000,000 | 1,432,000,000 | 1,657,000,000 | -418,000,000 | 1,010,000,000 | 2,094,000,000 | 2,225,000,000 | 2,370,000,000 | 2,693,000,000 |
| Diluted EPS | 1.03 | 3.32 | 2.50 | 3.04 | -2.58 | 1.46 | 4.53 | 4.33 | 6.14 | 6.12 |
| Operating cash flow | 1,310,000,000 | 849,000,000 | 1,255,000,000 | 1,384,000,000 | 708,000,000 | 109,000,000 | 1,681,000,000 | 1,946,000,000 | 2,013,000,000 | 2,129,000,000 |
| Capital expenditures | 317,000,000 | 58,000,000 | 72,000,000 | 81,000,000 | 46,000,000 | 35,000,000 | 39,000,000 | 151,000,000 | 96,000,000 | 101,000,000 |
| Dividends paid | 277,000,000 | 195,000,000 | 181,000,000 | 172,000,000 | 42,000,000 | 0.00 | 123,000,000 | 158,000,000 | 150,000,000 | 143,000,000 |
| Share buybacks | 0.00 | 891,000,000 | 1,721,000,000 | 1,538,000,000 | 296,000,000 | 0.00 | 1,590,000,000 | 2,338,000,000 | 2,893,000,000 | 3,182,000,000 |
| Assets | 26,211,000,000 | 14,228,000,000 | 13,995,000,000 | 14,957,000,000 | 16,755,000,000 | 15,441,000,000 | 15,512,000,000 | 15,401,000,000 | 16,522,000,000 | 16,774,000,000 |
| Liabilities | 20,362,000,000 | 12,537,000,000 | 13,437,000,000 | 15,429,000,000 | 18,241,000,000 | 16,260,000,000 | 16,610,000,000 | 17,748,000,000 | 20,211,000,000 | 22,120,000,000 |
| Stockholders' equity | 5,899,000,000 | 1,688,000,000 | 551,000,000 | -482,000,000 | -1,490,000,000 | -821,000,000 | -1,102,000,000 | -2,360,000,000 | -3,727,000,000 | -5,388,000,000 |
| Cash and cash equivalents | 1,062,000,000 | 570,000,000 | 403,000,000 | 538,000,000 | 3,218,000,000 | 1,427,000,000 | 1,209,000,000 | 800,000,000 | 1,301,000,000 | 918,000,000 |
| Free cash flow | 993,000,000 | 791,000,000 | 1,183,000,000 | 1,303,000,000 | 662,000,000 | 74,000,000 | 1,642,000,000 | 1,795,000,000 | 1,917,000,000 | 2,028,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 5.14% | 13.33% | 8.58% | 9.32% | -16.60% | 7.08% | 14.31% | 11.15% | 13.74% | 12.10% |
| Operating margin | 13.20% | 13.92% | 16.08% | 17.53% | -9.71% | 17.45% | 23.87% | 21.74% | 21.21% | 22.37% |
| Return on assets | 1.29% | 7.62% | 5.46% | 5.89% | -4.27% | 2.66% | 8.09% | 7.41% | 9.29% | 8.69% |
| Current ratio | 1.33 | 0.82 | 0.76 | 0.73 | 1.73 | 0.95 | 0.85 | 0.70 | 0.70 | 0.66 |

## As-reported value updates

11 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/HLT/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001585689.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.26 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.77 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.55 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 2,673,000,000 | 377,000,000 | 1.44 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 2,609,000,000 | 147,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 2,573,000,000 | 265,000,000 | 1.04 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 2,951,000,000 | 421,000,000 | 1.67 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 2,867,000,000 | 344,000,000 | 1.38 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 2,783,000,000 | 505,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 2,695,000,000 | 300,000,000 | 1.23 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 3,137,000,000 | 440,000,000 | 1.84 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 3,120,000,000 | 420,000,000 | 1.78 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 3,087,000,000 | 297,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 2,937,000,000 | 385,000,000 | 1.66 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 3,341,000,000 | 482,000,000 | 2.10 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from HLT's latest 10-K: [/company/HLT/business/](/company/HLT/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from HLT's latest 10-K: [/company/HLT/risk-factors/](/company/HLT/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1585689/000158568926000043/hlt-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-28
Report date: 2026-06-30

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Forward-Looking Statements

This Quarterly Report on Form 10-Q 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 (the "Exchange Act"). 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. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under "Part I—Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Quarterly Report on Form 10-Q and in our other filings with the Securities and Exchange Commission (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.

Overview

Our Business

Hilton is one of the largest global hospitality companies, with 9,453 properties comprising 1,384,842 rooms in 144 countries and territories as of June 30, 2026. Our premier brand portfolio includes luxury, lifestyle, full service, focused service and all-suites brands, as well as timeshare brands. As of June 30, 2026, we had 260 million members in our award-winning guest loyalty program, Hilton Honors, an increase of 15 percent from June 30, 2025.

Segments and Regions

We analyze our operations and business by both operating segments and geographic regions. Our operations consist of two reportable segments that are based on similar products and services: (i) management and franchise and (ii) ownership. The management and franchise segment provides services, including hotel management and licensing of our IP and/or the use of our booking channels and related programs. Revenues from this segment include: (i) management and franchise fees charged to third-party hotel owners; (ii) licensing fees from our strategic partners, including co-branded credit card providers and strategic partner hotels, and HGV; and (iii) fees for managing the hotels in our ownership segment. As a manager of hotels, we typically are responsible for supervising or operating the hotel in exchange for management fees. As a franchisor of hotels, we charge franchise fees in exchange for the use of one of our brand names and/or related commercial services, such as our reservations system, marketing and information technology services, while a third party manages or operates such franchised hotels. The ownership segment primarily derives revenues from nightly hotel room sales, food and beverage sales and other services at our consolidated hotels.

We conduct business in three distinct geographic regions: (i) the Americas; (ii) Europe, Middle East and Africa ("EMEA"); and (iii) Asia Pacific. The Americas region includes North America, South America and Central America, including all Caribbean nations. Although the U.S., which represented 63 percent of our system-wide hotel rooms as of June 30, 2026, is included in the Americas region, it is often analyzed separately and apart from the Americas region and, as such, it is presented separately within our hotel operating statistics in "—Results of Operations." The EMEA region includes Europe, which

16

represents the western-most peninsula of Eurasia stretching from Iceland in the west to Russia in the east, and the Middle East and Africa ("MEA"), which represents the Middle East region and all African nations, including the Indian Ocean island nations. Europe and MEA are often analyzed separately and, as such, are presented separately within our hotel operating statistics in "—Results of Operations." The Asia Pacific region includes the eastern and southeastern nations of Asia, as well as India, Australia, New Zealand and the Pacific Island nations.

System Growth and Development Pipeline

Our strategic objectives include the continued expansion of our global hotel network, in particular our fee-based business. As we enter into new management and franchise contracts and enter into strategic agreements to complement our hotel portfolio, we expand our business with limited or no capital investment by us as the manager, franchisor or licensor, since the capital required to build, renovate and maintain hotels is typically provided by the third-party owners with whom we contract to provide management services, license our IP or provide access to our booking channels and related programs. Prior to approving the addition of new hotels to our management and franchise development pipeline, we evaluate the economic viability of the hotel based on its geographic location, the credit quality of the third-party owner and other factors. By increasing the number of management and franchise contracts with third-party owners, over time we expect to increase revenues, overall return on invested capital and free cash flow. See further discussion on our cash management policy in "—Liquidity and Capital Resources." The current economic environment, including elevated levels of inflation and interest rates, has posed certain challenges to the execution of our growth strategy, which in some cases have included and may continue to include delays in openings and new development.

In addition to our current hotel portfolio, we are focused on the growth of our business by expanding our global hotel network through our development pipeline, which represents hotels that we expect to add to our system in the future. The following table summarizes our development activity:

[[GREPCENT_TABLE]]
[["","As of or for the"],["","Six Months Ended"],["","June 30, 2026"],["","Hotels","","Rooms(1)"],["Hotel system"],["Openings","338","","","40,400"],["Net additions(2)","288","","","32,500"],["Development pipeline"],["Additions","544","","","69,100"],["Count as of period end(3)","3,853","","","541,300"]]
[[/GREPCENT_TABLE]]

____________

(1)Rounded to the nearest hundred.

(2)Represents room additions, net of rooms removed from our system. Net unit growth from June 30, 2025 to June 30, 2026 was 6.1 percent.

(3)The hotels in our development pipeline were under development throughout 132 countries and territories, including 26 countries and territories where we had no existing hotels, with almost half of the rooms under construction and more than half of the rooms located outside of the U.S. Rooms under construction include rooms for hotels under construction or operating hotels that are in the process of conversion to our system. Nearly all of the rooms in our development pipeline will be in our management and franchise segment upon opening. We do not consider any individual development project to be material to us.

17

Key Business and Financial Metrics Used by Management

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, compari

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1585689/000158568926000007/hlt-20251231.htm
Complete FY 2025 MD&A: /company/HLT/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-11
Report date: 2025-12-31

Item 7.        Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.

For the discussion of the financial condition and results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, refer to "Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on February 6, 2025, which is incorporated herein by reference.

Overview

Our Business

Hilton is one of the largest global hospitality companies, with 9,158 properties comprising 1,351,351 rooms in 143 countries and territories as of December 31, 2025. Our premier brand portfolio includes luxury, lifestyle, full service, focused service and all-suites hotel brands, as well as timeshare brands. As of December 31, 2025, we had 243 million members in our award-winning guest loyalty program, Hilton Honors, an increase of 15 percent from December 31, 2024.

Segments and Regions

We analyze our operations and business by both operating segments and geographic regions. Our operations consist of two reportable segments that are based on similar products and services: (i) management and franchise and (ii) ownership. The management and franchise segment provides services, including hotel management and licensing of our IP and/or the use of our booking channels and related programs. Revenues from this segment include: (i) management and franchise fees charged to third-party hotel owners; (ii) licensing fees from our strategic partners, including co-branded credit card providers and strategic partner hotels, and HGV; and (iii) fees for managing the hotels in our ownership segment. As a manager of hotels, we typically are responsible for supervising or operating the hotel in exchange for management fees. As a franchisor of hotels, we charge franchise fees in exchange for the use of one of our brand names and/or related commercial services, such as our reservations system, marketing and information technology services, while a third party manages or operates such franchised hotels. The ownership segment primarily derives revenues from nightly hotel room sales, food and beverage sales and other services at our consolidated hotels.

We conduct business in three distinct geographic regions: (i) the Americas; (ii) Europe, Middle East and Africa ("EMEA"); and (iii) Asia Pacific. The Americas region includes North America, South America and Central America, including all Caribbean nations. Although the U.S., which represented 64 percent of our system-wide hotel rooms as of December 31, 2025, is included in the Americas region, it is often analyzed separately and apart from the Americas region and, as such, it is presented separately within our hotel operating statistics in "—Results of Operations." The EMEA region includes Europe, which represents the western-most peninsula of Eurasia stretching from Iceland in the west to Russia in the east, and MEA, which represents the Middle East region and all African nations, including the Indian Ocean island nations. Europe and MEA are often analyzed separately and, as such, are presented separately within our hotel operating statistics in "—Results of Operations." The Asia Pacific region includes the eastern and southeastern nations of Asia, as well as India, Australia, New Zealand and the Pacific Island nations.

System Growth and Development Pipeline

Our strategic objectives include the continued expansion of our global hotel network, in particular our fee-based business. As we enter into new management and franchise contracts and enter into strategic agreements to complement our hotel portfolio, we expand our business with limited or no capital investment by us as the manager, franchisor or licensor, since the capital required to build, renovate and maintain hotels is typically provided by the third-party owners with whom we contract to provide management services, license our IP or provide access to our booking channels and related programs. Prior to approving the addition of new hotels to our management and franchise development pipeline, we evaluate the economic viability of the hotel based on its geographic location, the credit quality of the third-party owner and other factors. By increasing the number of management and franchise contracts with third-party owners, over time we expect to increase revenues, overall return on invested capital and free cash flow. See further discussion on our cash management policy in "—Liquidity and Capital Resources." The current economic environment, including elevated levels of inflation and interest rates, has posed certain challenges to the execution of our growth strategy, which in some cases have included and may continue to include delays in openings and new development.

37

In addition to our current hotel portfolio, we are focused on the growth of our business by expanding our global hotel network through our development pipeline, which represents hotels that we expect to add to our system in the future. The following table summarizes our development activity:

[[GREPCENT_TABLE]]
[["","As of or for the Year Ended December 31, 2025"],["","Hotels","","Rooms(1)"],["Hotel system"],["Openings","796","","","97,000"],["Net additions(2)","702","","","81,100"],["Development pipeline"],["Additions","1,073","","","139,200"],["Count as of period end(3)","3,703","","","520,500"]]
[[/GREPCENT_TABLE]]

____________

(1)Rounded to the nearest hundred.

(2)Represents room additions, net of rooms removed from our system. Net unit growth for the year ended December 31, 2025 was 6.7 percent.

(3)The hotels in our development pipeline were under development throughout 129 countries and territories, including 26 countries and territories where we had no existing hotels, with almost half of the rooms under construction and more than half of the rooms located outside of the U.S. Rooms under construction include rooms for hotels under construction or operating hotels that are in the process of conversion to our system. Nearly all of the rooms in our development pipeline will be in our management and franchise segment upon opening. We do not consider any individual development project to be material to us.

Principal Components and Factors Affecting our Results of Operations

Revenues

Principal Components

We primarily derive our revenues from the following sources:

•Franchise and licensing fees. Represents fees earned in connection with licensing our IP, including our brands and/or the use of our booking channels and related programs. Under our long-term franchise contracts with hotel owners, franchisees typically pay us franchise fees that include: (i) monthly royalty fees, generally based on a percentage of the hotel's monthly gross room revenue, and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable; and (ii) application, initiation and other fees for when new hotels enter the system, when there is a change of ownership of a hotel or when contracts with hotels already in our system are extended. Consideration provided to incentivize hotel owners to enter into franchise contracts with us is amortized over the life of the applicable contract as a reduction to franchise and licensing fees. Our license agreements, for which we receive licensing fees for the use of our IP and/or the use of our booking channels and related programs, are predominantly with strategic partners, including co-branded credit card providers, strategic partner hotels and HGV.

•Base and incentive management fees. Represents fees earned in connection with the management of hotels. Terms of our management contracts vary, but our fees typically consist of a base management fee, which is generally based on a percentage of the hotel's monthly gross operating revenue and, when applicable, an incentive management fee, which is generally based on a percentage of the hotel's operating profits, normally over a one calendar year period, and, in some cases, may be subject to a stated return threshold to the hotel owner. Outside of the U.S., our fees are often more dependent on hotel profitability measures, either because of a single management fee structure where the entire fee is an incentive management fee, or because our two-tier fee structure is more heavily weighted toward the incentive management fee than the base management fee. Consideration provided to incentivize hotel owners to enter into management contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees.

•Ownership. Represents revenues derived from the operations of our consolidated hotels, including hotel room sales, accommodations sold in conjunction with other services, food and beverage sales and other ancillary goods and services. These revenues are primarily derived from two categories of customers: transient and group. Transient guests are individual travelers who are traveling for business or leisure. Group guests are travelers who are traveling for group events that reserve rooms for meetings, conferences or social functions, and may be sponsored by corporate, social, military, educational, religious or other organizations or associations. Group business usually includes a block of room

38

accommodations, as well as other ancillary services, such as meeting facilities and catering and banquet services. A majority of our food and beverage sales and other ancillary goods and services are provided to customers who are also occupying rooms at our hotels. As a result, occupancy affects all components of our ownership revenues.

•Other revenues. Represents revenues primarily generated by our purchasing operations.

•Cost reimbursement revenues. Represents amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through monthly program fees, for certain costs and expenses supporting the operations of the related properties. The direct reimbursements by property owners are primarily for payroll and related costs if the managed hotel employees are legally employed by us. We have no legal responsibility for the employee liabilities related to certain of our managed properties, predominately those located outside of the U.S., where we are not the legal employer, as well as the employees or the liabilities associated with operating franchised properties or strategic partner hotels. Revenues and expenses for these direct reimbursements have no net effect on operating income (loss) or net income (loss). For the indirect reimbursements, Hilton collects monthly program fees from our managed and franchised properties, which are based on the underlying hotel's sales or usage. The program fees serve as reimbursement for the costs related to the operation of our marketing, sales and brand programs and shared services. Hilton collects program fees from strategic partner hotels when a stay that was reserved using our booking channels is completed. Indirect reimbursements also include revenues related to our Hilton Honors guest loyalty program, which are primarily derived from payments from hotel franchisees and third-party owners of hotels we manage that participate in the program, as well as strategic partners, including strategic partner hotels. We are contractually required to use these fees that we collect solely for these programs.

Factors Affecting our Revenues

The following factors affect the revenues we derive from our operations:

•Consumer demand and global economic conditions. Consumer demand for our products and

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/HLT/mda/fy2025/
All MD&A years: /company/HLT/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/HLT/mda/fy2024/): filed 2025-02-06; accession 0001585689-25-000008 (https://www.sec.gov/Archives/edgar/data/1585689/000158568925000008/hlt-20241231.htm)
- [FY 2023 MD&A](/company/HLT/mda/fy2023/): filed 2024-02-07; accession 0001585689-24-000027 (https://www.sec.gov/Archives/edgar/data/1585689/000158568924000027/hlt-20231231.htm)
- [FY 2022 MD&A](/company/HLT/mda/fy2022/): filed 2023-02-09; accession 0001585689-23-000036 (https://www.sec.gov/Archives/edgar/data/1585689/000158568923000036/hlt-20221231.htm)
- [FY 2021 MD&A](/company/HLT/mda/fy2021/): filed 2022-02-16; accession 0001585689-22-000013 (https://www.sec.gov/Archives/edgar/data/1585689/000158568922000013/hlt-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7011 Hotels & Motels) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/HLT.md · JSON record: /company/HLT.json · verified financials: /company/HLT/financials.json / /company/HLT/financials.csv · machine TOC for the whole site: /llms.txt