Overview
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We delivered another year of strong top- and
bottom-line results and continued to deliver on our robust development story. Positive momentum in openings continued
throughout the year, with more openings in the fourth quarter than any other quarter in the Company's history. We also achieved
record signings for the year, meaningfully ahead of pre-pandemic levels. We expect this momentum to continue into 2024 and
net unit growth to accelerate to the high end of our guidance range of 5.5 percent to 6.0 percent, with the opportunity for further
upside of 25 to 50 basis points from our exclusive partnership with Small Luxury Hotels of the World. Adding this extraordinary
portfolio over the coming months to our strong and growing luxury offerings will further enhance our already powerful network
effect and give all of Hilton's customers, including our Hilton Honors members, even more opportunities to dream, book and earn
and redeem points. Powered by an award-winning culture that was recently recognized as the No. 1 World’s Best Workplace, our
Hilton team is well positioned to continue driving innovation and growth in the year ahead."
For the three months ended December 31, 2023, system-wide comparable RevPAR increased 5.7 percent compared to the
same period in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 12.2
percent compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR for
the three months ended December 31, 2023 increased 13.5 percent compared to the same period in 2019, and management
and franchise fee revenues increased 38.5 percent from the same period in 2019.
For the year ended December 31, 2023, system-wide comparable RevPAR increased 12.6 percent compared to the same period
in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 16.7 percent
compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR for the year
ended December 31, 2023 increased 10.7 percent compared to the same period in 2019, and management and franchise fee
revenues increased 33.1 percent from the same period in 2019.
For the three months ended December 31, 2023, diluted EPS was $0.57 and diluted EPS, adjusted for special items, was $1.68
compared to $1.21 and $1.59, respectively, for the three months ended December 31, 2022. Net income and Adjusted EBITDA
were $150 million and $803 million, respectively, for the three months ended December 31, 2023, compared to $333 million and
$740 million, respectively, for the three months ended December 31, 2022.
For the year ended December 31, 2023, diluted EPS was $4.33 and diluted EPS, adjusted for special items, was $6.21
compared to $4.53 and $4.89, respectively, for the year ended December 31, 2022. Net income and Adjusted EBITDA were
$1,151 million and $3,089 million, respectively, for the year ended December 31, 2023, compared to $1,257 million and $2,599
million, respectively, for the year ended December 31, 2022.
Development
In the fourth quarter of 2023, Hilton achieved a record number of room openings, totaling 24,000 rooms, and achieved net unit
growth of 22,300 rooms. During the quarter, Hilton achieved several growth milestones, opening the 150th Curio Collection by
Hilton, the 250th Tru by Hilton and the 1,000th Hilton Garden Inn. Additionally, Hilton celebrated the openings of its 600th hotel in
Greater China, as well as the Signia by Hilton Atlanta, which marked the brand's first new-build property.
Hilton added 33,800 rooms to the development pipeline during the fourth quarter, contributing to 130,200 rooms added for the full
year, which was approximately a 45 percent increase from the prior year. As of December 31, 2023, Hilton's development
pipeline totaled approximately 3,270 hotels representing 462,400 rooms throughout 118 countries and territories, including 30
countries and territories where Hilton had no existing hotels. Additionally, of the rooms in the development pipeline, 216,600 were
under construction and 259,800 were located outside of the U.S.
Balance Sheet and Liquidity
In November 2023, we amended the credit agreement governing our senior secured term loan facilities (the "Term Loans")
pursuant to which $1.0 billion of outstanding Term Loans were converted into a new tranche of Term Loans due June 2028 and
$1.6 billion of outstanding Term Loans were converted into a new tranche, which was also increased by $500 million of
aggregate principal amount, due November 2030.
As of December 31, 2023, Hilton had $9.3 billion of long-term debt outstanding, excluding the deduction for deferred financing
costs and discounts, with a weighted average interest rate of 4.78 percent. Excluding all finance lease liabilities and other debt of
Hilton's consolidated variable interest entities, Hilton had $9.1 billion of long-term debt outstanding with a weighted average
interest rate of 4.77 percent and no scheduled maturities until May 2025. As of December 31, 2023, no debt amounts were
outstanding under Hilton's $2.0 billion senior secured revolving credit facility, which had an available borrowing capacity of
$1,913 million after considering $87 million of outstanding letters of credit. Total cash and cash equivalents were $875 million as
of December 31, 2023, including $75 million of restricted cash and cash equivalents.
During the fourth quarter of 2023, Hilton repurchased 4.6 million shares of its common stock at a cost of $746 million and an
average price per share of $163.45. During the full year 2023, Hilton repurchased 15.6 million shares of its common stock at an
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