Q2 2023 Earnings Release

Investor Contact 7930 Jones Branch Drive

Jill Chapman McLean, VA 22102

+1 703 883 1000 ir.hilton.com

Media Contact

Kent Landers

+1 703 883 3246

Hilton Reports Second Quarter Results; Raises Full Year Outlook

MCLEAN, VA (July 26, 2023) - Hilton Worldwide Holdings Inc. ("Hilton" or the "Company") (NYSE: HLT) today reported its

second quarter 2023 results. Highlights include:

• Diluted EPS was $1.55 for the second quarter, and diluted EPS, adjusted for special items, was $1.63, both

exceeding the high end of guidance

• Net income was $413 million for the second quarter, exceeding the high end of guidance

• Adjusted EBITDA was $811 million for the second quarter, exceeding the high end of guidance

• System-wide comparable RevPAR increased 12.1 percent, on a currency neutral basis, for the second quarter

compared to the same period in 2022

• System-wide comparable RevPAR increased 9.3 percent, on a currency neutral basis, for the second quarter

compared to the same period in 2019

• Approved 36,000 new rooms for development during the second quarter, bringing Hilton's development

pipeline to 440,900 rooms as of June 30, 2023, representing growth of 7 percent from June 30, 2022

• Added 14,000 rooms to Hilton's system in the second quarter, resulting in 11,200 net additional rooms in

Hilton's system during the period

• Repurchased 3.3 million shares of Hilton common stock during the second quarter, bringing total capital

return, including dividends, to $510 million for the quarter and $1,123 million year to date through July

• Launched a new extended-stay brand with the working title Project H3 in May 2023

• Full year 2023 system-wide RevPAR is expected to increase between 10 percent and 12 percent on a

comparable and currency neutral basis compared to 2022; full year net income is projected to be between

$1,387 million and $1,422 million; full year Adjusted EBITDA is projected to be between $2,975 million and

$3,025 million

• Full year 2023 capital return is projected to be between $2.4 billion and $2.6 billion

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "System-wide comparable RevPAR continued to

expand throughout the quarter, experiencing growth across all of our customer segments and regions, driven by strong

preference for our brands. Our top line performance yielded meaningful bottom line results, as we exceeded the high end of our

guidance for Adjusted EBITDA and diluted EPS, adjusted for special items. We continue to drive long-term growth of our global

network through the launch of strategic, new brands and have already added over 60,000 rooms to our development pipeline

during 2023."

For the three months ended June 30, 2023, system-wide comparable RevPAR increased 12.1 percent compared to the same

period in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 16.1

percent compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR for

the three months ended June 30, 2023 increased 9.3 percent compared to the same period in 2019, and management and

franchise fee revenues increased 30.8 percent from the same period in 2019.

For the six months ended June 30, 2023, system-wide comparable RevPAR increased 19.7 percent compared to the same

period in 2022 due to increases in both occupancy and ADR, and management and franchise fee revenues increased 22.1

percent compared to the same period in 2022. For comparison to pre-pandemic results, system-wide comparable RevPAR for

the six months ended June 30, 2023 increased 8.8 percent compared to the same period in 2019, and management and

franchise fee revenues increased 28.7 percent from the same period in 2019.

For the three months ended June 30, 2023, diluted EPS was $1.55 and diluted EPS, adjusted for special items, was $1.63

compared to $1.32 and $1.29, respectively, for the three months ended June 30, 2022. Net income and Adjusted EBITDA were

$413 million and $811 million, respectively, for the three months ended June 30, 2023, compared to $367 million and $679

million, respectively, for the three months ended June 30, 2022.

For the six months ended June 30, 2023, diluted EPS was $2.31 and diluted EPS, adjusted for special items, was $2.86

compared to $2.07 and $2.00, respectively, for the six months ended June 30, 2022. Net income and Adjusted EBITDA were

$622 million and $1,452 million, respectively, for the six months ended June 30, 2023, compared to $578 million and $1,127

million, respectively, for the six months ended June 30, 2022.

Development

In the second quarter of 2023, Hilton opened 92 new hotels totaling 14,000 rooms and achieved net unit growth of 11,200 rooms.

During the quarter, Hilton opened the Conrad Shenzhen, Hilton's first luxury property in China's technology hub, and surpassed

150,000 hotel rooms in the Asia Pacific region, which included nearly 50,000 Hampton by Hilton rooms in China. Additionally,

continuing to demonstrate the value of our all-suites category, Hilton opened the 600th Home2 Suites by Hilton, one of the

fastest growing brands in the industry.

Hilton added over 36,000 rooms to the development pipeline during the second quarter, and, as of June 30, 2023, Hilton's

development pipeline totaled approximately 3,060 hotels representing 440,900 rooms throughout 116 countries and territories,

including 29 countries and territories where Hilton did not have any existing hotels. Additionally, of the rooms in the development

pipeline, 217,000 of the rooms were under construction and 250,100 of the rooms were located outside of the U.S.

Spark by Hilton, our new premium economy brand launched in January 2023, had approximately 60 hotels in the development

pipeline as of June 30, 2023. In May 2023, Hilton launched a new brand in the U.S. under the working title Project H3, an

inventive, new apartment-style extended-stay brand positioned to serve the unique needs of the long-stay traveler, including the

rapidly expanding workforce travel market.

Balance Sheet and Liquidity

As of June 30, 2023, Hilton had $8.8 billion of long-term debt outstanding, excluding the deduction for deferred financing costs

and discount, with a weighted average interest rate of 4.54 percent. Excluding all finance lease liabilities and other debt of

Hilton's consolidated variable interest entities, Hilton had $8.6 billion of long-term debt outstanding with a weighted average

interest rate of 4.53 percent and no scheduled maturities until May 2025. As of June 30, 2023, no debt amounts were

outstanding under Hilton's $2.0 billion senior secured revolving credit facility, which had an available borrowing capacity of

$1,940 million after considering $60 million of outstanding letters of credit. Total cash and cash equivalents were $883 million as

of June 30, 2023, including $77 million of restricted cash and cash equivalents.

During the second quarter of 2023, Hilton repurchased 3.3 million shares of its common stock at a cost of $470 million and an

average price per share of $141.96. During the six months ended June 30, 2023, Hilton repurchased 6.5 million shares of its

common stock at an average price per share of $140.94, returning $916 million of capital to shareholders. Through July 21,

2023, since the inception of Hilton's stock repurchase program in March 2017, Hilton repurchased approximately 59.7 million

shares of its common stock for approximately $5.9 billion at an average price per share of $99.03. The amount remaining under

Hilton's stock repurchase program is approximately $2.1 billion.

In June 2023, Hilton paid a quarterly cash dividend of $0.15 per share of common stock, for a total of $40 million, bringing total

dividend payments for the year to $81 million. In July 2023, Hilton's board of directors authorized a regular quarterly cash

dividend of $0.15 per share of common stock to be paid on or before September 29, 2023 to holders of record of its common

stock as of the close of business on August 25, 2023.

Outlook

Share-based metrics in Hilton's outlook include actual share repurchases to date, but do not include the effect of potential share

repurchases hereafter.

Full Year 2023

• System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 10 percent and 12

percent compared to 2022.

• Diluted EPS is projected to be between $5.18 and $5.31.

• Diluted EPS, adjusted for special items, is projected to be between $5.93 and $6.06.

• Net income is projected to be between $1,387 million and $1,422 million.

• Adjusted EBITDA is projected to be between $2,975 million and $3,025 million.

• Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are expected to be

approximately $300 million.

• Capital return is projected to be between $2.4 billion and $2.6 billion.

• General and administrative expenses are projected to be between $390 million and $410 million.

• Net unit growth is expected to be approximately 5 percent.

Third Quarter 2023

• System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 4 percent and 6

percent compared to the third quarter of 2022.

• Diluted EPS is projected to be between $1.49 and $1.54.

• Diluted EPS, adjusted for special items, is projected to be between $1.60 and $1.65.

• Net income is projected to be between $395 million and $409 million.

• Adjusted EBITDA is projected to be between $790 million and $810 million.

Conference Call

Hilton will host a conference call to discuss second quarter of 2023 results on July 26, 2023 at 10:00 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 1121609. 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 1-877-344-7529 in the U.S. or 1-412-317-0088 internationally using the conference ID 9297768.

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 the expectations regarding the performance of Hilton's 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," "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 Hilton's control, such as inflation, changes in interest rates, challenges due to labor

shortages and supply chain disruptions and recent events affecting the financial services industry; risks related to the impact of

the COVID-19 pandemic; competition for hotel guests and management and franchise contracts; risks related to doing business

with third-party hotel owners; performance of Hilton's information technology systems; growth of reservation channels outside of

Hilton's system; risks of doing business outside of the U.S.; risks associated with the Russian invasion of Ukraine; and Hilton's

indebtedness. Additional factors that could cause Hilton's 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 Hilton's Annual Report on Form 10-K for

the fiscal year ended December 31, 2022, 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

Hilton's filings with the SEC. The Company undertakes 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

The Company refers 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;

EBITDA; 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 22 world-class brands comprising nearly 7,300

properties and more than 1.1 million rooms, in 123 countries and territories. Dedicated to fulfilling its founding vision to fill the

earth with the light and warmth of hospitality, Hilton has welcomed more than 3 billion guests in its more than 100-year history,

earned a top spot on Fortune's 100 Best Companies to Work For list and been recognized as a global leader on the Dow Jones

Sustainability Indices for six consecutive years. Hilton has introduced several 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 more than 165 million

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,

twitter.com/hiltonnewsroom, linkedin.com/company/hilton, instagram.com/hiltonnewsroom and youtube.com/hiltonnewsroom.

HILTON WORLDWIDE HOLDINGS INC.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

Page

Condensed Consolidated Statements of Operations 6

Comparable and Currency Neutral System-Wide Hotel Operating Statistics 7

Property Summary 9

Capital Expenditures and Contract Acquisition Costs 11

Reconciliations of Non-GAAP Financial Measures 12

Definitions 17

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Revenues

Franchise and licensing fees $ 618 $ 545 $ 1,126 $ 958

Base and other management fees 86 75 166 130

Incentive management fees 69 46 134 80

Owned and leased hotels 341 282 589 432

Other revenues 46 25 81 43

1,160 973 2,096 1,643

Other revenues from managed and franchised properties 1,500 1,267 2,857 2,318

Total revenues 2,660 2,240 4,953 3,961

Expenses

Owned and leased hotels 297 257 548 442

Depreciation and amortization 37 40 74 84

General and administrative 111 103 202 194

Other expenses 33 11 54 22

478 411 878 742

Other expenses from managed and franchised properties 1,508 1,231 2,903 2,252

Total expenses 1,986 1,642 3,781 2,994

Operating income 674 598 1,172 967

Interest expense (111) (99) (227) (189)

Gain (loss) on foreign currency transactions (6) 8 (6) 4

Loss on investments in unconsolidated affiliate — — (92) —

Other non-operating income, net 11 6 23 22

Income before income taxes 568 513 870 804

Income tax expense (155) (146) (248) (226)

Net income 413 367 622 578

Net loss (income) attributable to noncontrolling interests (2) 1 (5) 2

Net income attributable to Hilton stockholders $ 411 $ 368 $ 617 $ 580

Weighted average shares outstanding:

Basic 264 278 265 278

Diluted 266 280 267 281

Earnings per share:

Basic $ 1.56 $ 1.33 $ 2.33 $ 2.09

Diluted $ 1.55 $ 1.32 $ 2.31 $ 2.07

Cash dividends declared per share $ 0.15 $ 0.15 $ 0.30 $ 0.15

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

2023 vs. 2022 2023 vs. 2022 2023 vs. 2022

Region

U.S. 75.9 % 1.3 % pts. $ 169.31 3.8 % $ 128.51 5.6 %

Americas (excluding U.S.) 70.7 4.2 153.60 15.1 108.66 22.4

Europe 75.4 4.1 181.74 19.3 136.96 26.2

Middle East & Africa 67.5 7.4 179.08 15.9 120.85 30.2

Asia Pacific 69.9 20.9 111.88 25.4 78.19 79.0

Brand

Waldorf Astoria Hotels & Resorts 65.4 % 9.3 % pts. $ 506.43 0.9 % $ 331.19 17.6 %

LXR Hotels & Resorts 48.8 3.1 488.18 8.2 238.26 15.6

Conrad Hotels & Resorts 72.8 13.6 299.71 14.4 218.27 40.6

Canopy by Hilton 72.7 7.8 227.29 7.1 165.30 20.0

Hilton Hotels & Resorts 71.7 7.8 195.61 7.1 140.29 20.2

Curio Collection by Hilton 71.6 5.8 234.39 2.1 167.80 11.0

DoubleTree by Hilton 71.1 4.4 146.30 6.3 104.09 13.2

Tapestry Collection by Hilton

72.3

3.6 183.21 5.6 132.46 11.0

Embassy Suites by Hilton 76.1 2.5 187.64 4.3 142.78 7.9

Hilton Garden Inn 74.2 2.7 151.71 4.8 112.58 8.8

Hampton by Hilton 75.8 3.6 136.08 3.6 103.13 8.8

Tru by Hilton 75.6 1.3 132.74 2.9 100.30 4.6

Homewood Suites by Hilton 81.6 (0.3) 162.40 5.5 132.59 5.2

Home2 Suites by Hilton 81.9 1.0 145.60 5.0 119.19 6.2

Segment

Management and franchise 74.6 % 4.1 % pts. $ 162.16 5.5 % $ 121.00 11.6 %

Ownership

(1)

76.2 12.3 249.09 19.7 189.69 42.7

System-wide 74.6 % 4.2 % pts. $ 163.47 5.9 % $ 122.02 12.1 %

(continued on next page)

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

2023 vs. 2022 2023 vs. 2022 2023 vs. 2022

Region

U.S. 72.4 % 3.9 % pts. $ 164.74 6.2 % $ 119.20 12.4 %

Americas (excluding U.S.) 68.3 9.5 150.83 17.4 103.01 36.2

Europe 68.8 9.7 164.28 20.2 113.00 40.0

Middle East & Africa 70.8 7.8 177.66 16.8 125.79 31.2

Asia Pacific 67.8 22.5 113.94 23.6 77.30 84.7

Brand

Waldorf Astoria Hotels & Resorts 63.6 % 12.5 % pts. $ 532.72 (3.8) % $ 338.85 19.7 %

LXR Hotels & Resorts 47.4 3.6 488.72 4.4 231.51 12.9

Conrad Hotels & Resorts 71.0 17.4 291.53 17.7 207.12 56.0

Canopy by Hilton 69.0 12.2 219.95 8.9 151.69 32.3

Hilton Hotels & Resorts 68.3 11.9 190.75 9.6 130.20 32.7

Curio Collection by Hilton 69.1 10.1 232.10 2.6 160.35 20.1

DoubleTree by Hilton 67.5 7.1 142.25 8.0 96.02 20.8

Tapestry Collection by Hilton

67.4

5.3 176.62 8.7 119.01 17.9

Embassy Suites by Hilton 72.7 6.1 182.80 6.2 132.87 15.9

Hilton Garden Inn 70.8 5.5 145.72 7.2 103.10 16.2

Hampton by Hilton 72.1 6.0 130.84 4.8 94.38 14.3

Tru by Hilton 71.8 3.5 127.72 4.8 91.68 10.3

Homewood Suites by Hilton 79.2 1.2 156.31 7.6 123.75 9.3

Home2 Suites by Hilton 79.4 2.3 141.37 7.0 112.24 10.1

Segment

Management and franchise 71.3 % 6.8 % pts. $ 157.59 7.6 % $ 112.33 19.0 %

Ownership

(1)

69.6 18.9 228.82 19.9 159.18 64.7

System-wide 71.3 % 7.0 % pts. $ 158.62 7.9 % $ 113.02 19.7 %

____________

(1)

Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.

HILTON WORLDWIDE HOLDINGS INC.

PROPERTY SUMMARY

As of June 30, 2023

Owned / Leased

(1)

Managed Franchised Total

Properties Rooms Properties Rooms Properties Rooms Properties Rooms

Waldorf Astoria Hotels & Resorts

U.S. — — 12 4,487 — — 12 4,487

Americas (excluding U.S.) — — 3 422 — — 3 422

Europe 2 463 4 898 — — 6 1,361

Middle East & Africa — — 7 1,867 — — 7 1,867

Asia Pacific — — 6 1,259 — — 6 1,259

LXR Hotels & Resorts

U.S. — — — — 3 522 3 522

Americas (excluding U.S.) — — — — 1 76 1 76

Europe — — 1 70 1 307 2 377

Middle East & Africa — — 1 41 3 282 4 323

Asia Pacific — — — — 1 114 1 114

Conrad Hotels & Resorts

U.S. — — 6 2,227 2 1,730 8 3,957

Americas (excluding U.S.) — — 3 787 — — 3 787

Europe — — 4 1,155 1 107 5 1,262

Middle East & Africa 1 614 4 1,689 — — 5 2,303

Asia Pacific 1 164 24 7,388 1 659 26 8,211

Canopy by Hilton

U.S. — — — — 26 4,490 26 4,490

Americas (excluding U.S.) — — 2 272 1 184 3 456

Europe — — 1 123 4 917 5 1,040

Middle East & Africa — — 1 200 — — 1 200

Asia Pacific — — 4 614 — — 4 614

Signia by Hilton

U.S. — — 2 1,814 — — 2 1,814

Hilton Hotels & Resorts

U.S. — — 58 43,910 189 59,378 247 103,288

Americas (excluding U.S.) 1 405 31 11,790 23 6,788 55 18,983

Europe 37 11,135 43 14,792 44 11,508 124 37,435

Middle East & Africa 4 1,705 39 13,387 4 1,738 47 16,830

Asia Pacific 5 2,999 114 39,527 9 3,557 128 46,083

Curio Collection by Hilton

U.S. — — 11 4,979 64 13,098 75 18,077

Americas (excluding U.S.) — — 2 99 18 2,272 20 2,371

Europe — — 6 516 30 4,024 36 4,540

Middle East & Africa — — 4 741 2 557 6 1,298

Asia Pacific — — 4 773 2 248 6 1,021

DoubleTree by Hilton

U.S. — — 31 10,087 348 79,102 379 89,189

Americas (excluding U.S.) — — 3 587 38 7,698 41 8,285

Europe — — 17 4,211 110 19,195 127 23,406

Middle East & Africa — — 19 5,242 5 996 24 6,238

Asia Pacific — — 85 22,592 8 2,101 93 24,693

(continued on next page)

HILTON WORLDWIDE HOLDINGS INC.

PROPERTY SUMMARY (continued)

As of June 30, 2023

Owned / Leased

(1)

Managed Franchised Total

Properties Rooms Properties Rooms Properties Rooms Properties Rooms

Tapestry Collection by Hilton

U.S. — — — — 87 10,512 87 10,512

Americas (excluding U.S.) — — 1 138 9 1,122 10 1,260

Europe — — — — 9 524 9 524

Middle East & Africa — — 1 50 — — 1 50

Asia Pacific — — 2 382 1 175 3 557

Embassy Suites by Hilton

U.S. — — 37 9,943 219 49,225 256 59,168

Americas (excluding U.S.) — — 2 504 7 1,829 9 2,333

Middle East & Africa — — — — 1 151 1 151

Motto by Hilton

U.S. — — — — 3 871 3 871

Americas (excluding U.S.) — — — — 1 115 1 115

Europe — — — — 1 108 1 108

Hilton Garden Inn

U.S. — — 6 689 736 101,529 742 102,218

Americas (excluding U.S.) — — 12 1,838 53 7,952 65 9,790

Europe — — 13 2,524 67 10,712 80 13,236

Middle East & Africa — — 17 3,555 3 474 20 4,029

Asia Pacific — — 66 14,151 9 1,502 75 15,653

Hampton by Hilton

U.S. — — 22 2,858 2,322 229,921 2,344 232,779

Americas (excluding U.S.) — — 12 1,537 117 14,166 129 15,703

Europe — — 16 2,697 111 17,423 127 20,120

Middle East & Africa — — 5 1,459 — — 5 1,459

Asia Pacific — — — — 306 48,663 306 48,663

Tru by Hilton

U.S. — — — — 238 23,227 238 23,227

Americas (excluding U.S.) — — — — 4 453 4 453

Homewood Suites by Hilton

U.S. — — 9 1,131 502 57,382 511 58,513

Americas (excluding U.S.) — — 3 406 24 2,688 27 3,094

Home2 Suites by Hilton

U.S. — — 2 210 564 59,063 566 59,273

Americas (excluding U.S.) — — — — 9 952 9 952

Asia Pacific — — — — 33 4,953 33 4,953

Other — — 3 1,322 6 1,436 9 2,758

Total hotels

51 17,485 781 243,940 6,380 868,776 7,212 1,130,201

Hilton Grand Vacations

(2)

— — — — 83 14,648 83 14,648

Total system

51 17,485 781 243,940 6,463 883,424 7,295 1,144,849

____________

(1)

Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.

(2)

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)

2023 2022 $ %

Capital expenditures for property and equipment

(2)

$ 30 $ 7 23 NM

(1)

Capitalized software costs

(3)

23 15 8 53.3

Total capital expenditures 53 22 31 NM

(1)

Contract acquisition costs, net of refunds

(4)

34 26 8 30.8

Total capital expenditures and contract acquisition costs $ 87 $ 48 39 81.3

Six Months Ended

June 30, Increase / (Decrease)

2023 2022 $ %

Capital expenditures for property and equipment

(2)

$ 74 $ 11 63 NM

(1)

Capitalized software costs

(3)

42 25 17 68.0

Total capital expenditures 116 36 80 NM

(1)

Contract acquisition costs, net of refunds

(4)

139 41 98 NM

(1)

Total capital expenditures and contract acquisition costs $ 255 $ 77 178 NM

(1)

____________

(1)

Fluctuation in terms of percentage change is not meaningful.

(2)

Represents expenditures for hotels, corporate and other property and equipment, which include amounts reimbursed by third parties of $2

million and $1 million for the three months ended June 30, 2023 and 2022, respectively, and $4 million and $2 million for the six months

ended June 30, 2023 and 2022, respectively. Excludes expenditures for FF&E replacement reserves of $15 million for both the three

months ended June 30, 2023 and 2022, and $23 million and $27 million for the six months ended June 30, 2023 and 2022, respectively.

(3)

Includes $21 million and $14 million of expenditures that were reimbursed to us by third parties for the three months ended June 30, 2023

and 2022, respectively, and $39 million and $23 million for the six months ended June 30, 2023 and 2022, respectively.

(4)

The increase during the period was due to the timing of certain strategic hotel developments supporting Hilton's growth.

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, June 30,

2023 2022 2023 2022

Net income attributable to Hilton stockholders, as

reported

$ 411 $ 368 $ 617 $ 580

Diluted EPS, as reported $ 1.55 $ 1.32 $ 2.31 $ 2.07

Special items:

Net other expenses (revenues) from managed and

franchised properties

$ 8 $ (36) $ 46 $ (66)

Purchase accounting amortization

(1)

11 11 22 23

Loss on investments in unconsolidated affiliate

(2)

— — 92 —

FF&E replacement reserves 15 15 23 27

Tax-related adjustments

(3)

(8) — (8) —

Other adjustments

(4)

4 — 9 (10)

Total special items before taxes 30 (10) 184 (26)

Income tax benefit (expense) on special items

(9) 3 (36) 8

Total special items after taxes $ 21 $ (7) $ 148 $ (18)

Net income, adjusted for special items $ 432 $ 361 $ 765 $ 562

Diluted EPS, adjusted for special items

$ 1.63 $ 1.29 $ 2.86 $ 2.00

____________

(1)

Amounts represent 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. The majority of the related assets will be fully amortized during

2023.

(2)

Amount includes losses recognized related to equity and debt financing that Hilton had previously provided to an unconsolidated affiliate

with underlying investments in hotels that Hilton currently or in the future will manage or franchise.

(3)

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

benefits.

(4)

Amounts for the three months ended June 30, 2023 and the six months ended June 30, 2023 and 2022 include net losses (gains) related to

certain of Hilton's investments in unconsolidated affiliates, other than the loss included separately in "loss on investments in unconsolidated

affiliate," which were recognized in other non-operating income, net.

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, June 30,

2023 2022 2023 2022

Net income $ 413 $ 367 $ 622 $ 578

Interest expense 111 99 227 189

Income tax expense 155 146 248 226

Depreciation and amortization expenses 37 40 74 84

EBITDA 716 652 1,171 1,077

Loss (gain) on foreign currency transactions 6 (8) 6 (4)

Loss on investments in unconsolidated affiliate

(1)

— — 92 —

FF&E replacement reserves 15 15 23 27

Share-based compensation expense 52 47 85 84

Amortization of contract acquisition costs 11 10 21 18

Net other expenses (revenues) from managed and

franchised properties

8 (36) 46 (66)

Other adjustments

(2)

3 (1) 8 (9)

Adjusted EBITDA $ 811 $ 679 $ 1,452 $ 1,127

____________

(1)

Amount includes losses recognized related to equity and debt financing that Hilton had previously provided to an unconsolidated affiliate

with underlying investments in hotels that Hilton currently or in the future will manage or franchise.

(2)

Amounts for the three months ended June 30, 2023 and six months ended June 30, 2023 and 2022 include net losses (gains) related to

certain of Hilton's investments in unconsolidated affiliates, other than the loss included separately in "loss on investments in unconsolidated

affiliate." All periods include severance and other items.

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Total revenues, as reported $ 2,660 $ 2,240 $ 4,953 $ 3,961

Add: amortization of contract acquisition costs 11 10 21 18

Less: other revenues from managed and franchised

properties

(1,500) (1,267) (2,857) (2,318)

Total revenues, as adjusted $ 1,171 $ 983 $ 2,117 $ 1,661

Net income $ 413 $ 367 $ 622 $ 578

Net income margin 15.5 % 16.4 % 12.6 % 14.6 %

Adjusted EBITDA $ 811 $ 679 $ 1,452 $ 1,127

Adjusted EBITDA margin 69.3 % 69.1 % 68.6 % 67.9 %

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,

2023 2022

Long-term debt, including current maturities $ 8,731 $ 8,747

Add: unamortized deferred financing costs and discount 67 73

Long-term debt, including current maturities and excluding the deduction for unamortized

deferred financing costs and discount

8,798 8,820

Less: cash and cash equivalents (806) (1,209)

Less: restricted cash and cash equivalents (77) (77)

Net debt $ 7,915 $ 7,534

Six Months Ended Year Ended TTM Ended

June 30, December 31, June 30,

2023 2022 2022 2023

Net income $ 622 $ 578 $ 1,257 $ 1,301

Interest expense 227 189 415 453

Income tax expense 248 226 477 499

Depreciation and amortization expenses 74 84 162 152

EBITDA 1,171 1,077 2,311 2,405

Loss (gain) on foreign currency transactions 6 (4) (5) 5

Loss on investments in unconsolidated affiliate

(1)

92 — — 92

FF&E replacement reserves 23 27 54 50

Share-based compensation expense 85 84 162 163

Amortization of contract acquisition costs 21 18 38 41

Net other expenses (revenues) from managed and

franchised properties

46 (66) 39 151

Other adjustments

(2)

8 (9) — 17

Adjusted EBITDA $ 1,452 $ 1,127 $ 2,599 $ 2,924

Long-term debt $ 8,731

Long-term debt to net income ratio 6.7

Net debt $ 7,915

Net debt to Adjusted EBITDA ratio 2.7

____________

(1)

Amount includes losses recognized related to equity and debt financing that Hilton had previously provided to an unconsolidated affiliate

with underlying investments in hotels that Hilton currently or in the future will manage or franchise.

(2)

Amount for the year ended December 31, 2022 was less than $1 million. All periods include net losses (gains) related to certain of Hilton's

investments in unconsolidated affiliates, other than the loss included separately in "loss on investments in unconsolidated affiliate,"

severance and other items.

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, 2023

Low Case High Case

Net income attributable to Hilton stockholders $ 392 $ 406

Diluted EPS

(1)

$ 1.49 $ 1.54

Special items

(2)

Purchase accounting amortization $ 11 $ 11

FF&E replacement reserves 24 24

Total special items before taxes 35 35

Income tax expense on special items (5) (5)

Total special items after taxes $ 30 $ 30

Net income, adjusted for special items $ 422 $ 436

Diluted EPS, adjusted for special items

(1)

$ 1.60 $ 1.65

Year Ending

December 31, 2023

Low Case High Case

Net income attributable to Hilton stockholders $ 1,376 $ 1,411

Diluted EPS

(1)

$ 5.18 $ 5.31

Special items

(2)

Net other expenses from managed and franchised properties

$ 46 $ 46

Purchase accounting amortization 38 38

Loss on investments in unconsolidated affiliate 92 92

FF&E replacement reserves 66 66

Tax-related adjustments (8) (8)

Other adjustments 9 9

Total special items before taxes 243 243

Income tax expense on special items (43) (43)

Total special items after taxes $ 200 $ 200

Net income, adjusted for special items $ 1,576 $ 1,611

Diluted EPS, adjusted for special items

(1)

$ 5.93 $ 6.06

____________

(1)

Does not include the effect of potential share repurchases.

(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: ADJUSTED EBITDA

(in millions)

(unaudited)

Three Months Ending

September 30, 2023

Low Case High Case

Net income $ 395 $ 409

Interest expense 110 110

Income tax expense 158 164

Depreciation and amortization expenses 40 40

EBITDA 703 723

FF&E replacement reserves 24 24

Share-based compensation expense 43 43

Amortization of contract acquisition costs 11 11

Other adjustments

(1)

9 9

Adjusted EBITDA $ 790 $ 810

Year Ending

December 31, 2023

Low Case High Case

Net income $ 1,387 $ 1,422

Interest expense 453 453

Income tax expense 551 566

Depreciation and amortization expenses 146 146

EBITDA 2,537 2,587

Loss on foreign currency transactions 6 6

Loss on investments in unconsolidated affiliate 92 92

FF&E replacement reserves 66 66

Share-based compensation expense 160 160

Amortization of contract acquisition costs 43 43

Net other expenses from managed and franchised properties 46 46

Other adjustments

(1)

25 25

Adjusted EBITDA $ 2,975 $ 3,025

____________

(1)

Includes adjustments for severance and other items. 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, 2023,

which is calculated as the six months ended June 30, 2023 plus the year ended December 31, 2022 less the six months ended

June 30, 2022. This presentation is not in accordance with GAAP. However, the Company believes that this presentation

provides useful information to investors regarding its recent financial performance, and it views this presentation of the four most

recently completed fiscal quarters as a key measurement period for investors to assess its historical results. In addition, the

Company's management uses TTM information to evaluate the Company's 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, 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) or other measures of financial

performance or liquidity derived in accordance with GAAP. In addition, the Company's 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 the

Company's ongoing operations.

EBITDA, Adjusted EBITDA, Net Income Margin and Adjusted EBITDA Margin

EBITDA, presented herein, reflects net income (loss), excluding interest expense, a provision for income tax benefit (expense)

and depreciation and amortization expenses. Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously

defined, further adjusted to exclude certain items, including gains, losses, revenues and expenses 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) the net effect of reimbursable costs included in other revenues and other expenses

from managed and franchised properties; and (x) other items.

Net income margin represents net income 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 other revenues

from managed and franchised properties.

The Company believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors

about the Company's financial condition and results of operations for the following reasons: (i) these measures are among the

measures used by the Company's management team to evaluate its 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 the industry. Additionally, these measures

exclude certain items that can vary widely across different industries and among competitors within the Company's 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. For Adjusted EBITDA, the Company also excludes 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; (iii) the net effect of the Company's cost

reimbursement revenues and reimbursed expenses, as the Company contractually does not operate the related programs to

generate a profit over the terms of the respective contracts; and (iv) other items, such as amounts related to debt restructurings

and debt retirements and reorganization and related severance costs, that are not core to the Company's operations and are not

reflective of the Company's operating performance.

EBITDA, 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) or other measures of financial performance or liquidity,

including cash flows, derived in accordance with GAAP. Further, EBITDA, 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 the Company's results as reported under GAAP.

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

Long-term debt to net income ratio is calculated as the ratio of Hilton's long-term debt, including current maturities, to net income.

Net debt is calculated as: long-term debt, including current maturities and excluding the deduction for unamortized deferred

financing costs and discount; 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. The Company

believes net debt and net debt to Adjusted EBITDA ratio provide useful information about its indebtedness to investors as they

are frequently used by securities analysts, investors and other interested parties to compare the indebtedness between

companies.

Comparable Hotels

The Company defines comparable hotels as those that: (i) were active and operating in the Company's system for at least one

full calendar year as of the end of the current period, and open January 1st of the previous year; (ii) have not undergone a

change in brand or ownership type during the current or comparable periods reported; and (iii) have not sustained substantial

property damage, business interruption, undergone large-scale capital projects or for which comparable results were not

available. Of the 7,212 hotels in the Company's system as of June 30, 2023, 6,048 hotels were classified as comparable hotels.

The 1,164 non-comparable hotels as of June 30, 2023 included 388 hotels, or approximately five percent of the total hotels in the

Company's system, that were removed from the comparable group during the last twelve months because they sustained

substantial property damage, encountered business interruption, underwent large-scale capital projects or comparable results

were otherwise not available.

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

management uses ADR to assess pricing levels that the Company is 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.

Management considers RevPAR to be a meaningful indicator of the Company's 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 throughout this press release are presented on a comparable basis, based on the

comparable hotels as of June 30, 2023, 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, 2023 and

2022 or 2019 use the foreign currency exchange rates used to translate the results of the Company's foreign operations within its

unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023, respectively.