Hilton Worldwide Holdings (HLT) AI Stock Analysis

• Market Cap: $71.78B
• Dividend Yield: 0.21%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 44.1
• Beta (1Y): 0.90
• Revenue Growth: 6.68%
• EPS Growth: 48.03%
• Country: US
• Employees: 181,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 2.11
• Shares Outstanding: 232,435,170
• 10 Day Avg. Volume: 2,120,109
• 30 Day Avg. Volume: 1,599,521
• PEG Ratio: 0.94
• Price to Book (P/B): -16.41
• Price to Sales (P/S): 5.47
• P/FCF Ratio: 33.70
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 7.08
• Enterprise Value/Gross Profit: 25.45
• Enterprise Value/Ebitda: 30.09
• 1Y Price Target: $316.30
• Price Target Upside: 2.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 9.13
• Revenue Forecast (FY): $12.86B

• Rating: 67 Neutral
• Price Target: $294.00 ▼(-4.80% Downside)

Hilton Worldwide Holdings demonstrates strong financial recovery and robust cash flow management, which are significant strengths. However, high leverage and premium valuation present risks. The company's strategic initiatives, such as debt restructuring and expansion plans, contribute positively to its outlook, but challenges in key markets like China and the U.S. need careful monitoring.

Positive Factors

Strong Cash Flow Management

Hilton's ability to generate strong cash flow ensures liquidity and supports reinvestment in growth initiatives, enhancing long-term financial stability.

Robust Development Pipeline

A strong pipeline of new hotels supports future revenue growth and market expansion, reinforcing Hilton's competitive position in the hospitality industry.

Innovative Technology Integration

Leveraging technology enhances operational efficiency and customer experience, positioning Hilton favorably for future digital advancements.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Hilton's ability to invest in growth or weather economic downturns.

RevPAR Decline

Declining RevPAR indicates challenges in maintaining pricing power and occupancy, which could pressure revenue growth and profitability.

Challenges in Key Markets

Weak performance in key markets like China can hinder overall growth and expose Hilton to regional economic and regulatory risks.

Hilton Worldwide Holdings Business Overview & Revenue Model

Company Description

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Tempo by Hilton, Motto by Hilton, Signia by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, and Hilton Grand Vacations. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. As of February 16, 2022, the company had approximately 6,800 properties with 1 million rooms in 122 countries and territories. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

How the Company Makes Money

Hilton generates revenue through multiple streams, primarily by operating its owned and leased properties, as well as through franchising and management agreements. The company's owned and leased hotels contribute a significant portion of its revenue through room sales, food and beverage services, and ancillary offerings such as meeting and event space. Additionally, Hilton benefits from franchise fees charged to hotel owners who operate under its brand, which include initial franchise fees, ongoing royalties based on room revenue, and other service fees. Management contracts also contribute to revenue as Hilton manages hotels on behalf of owners for a fee. Key partnerships with travel agencies, online travel booking platforms, and loyalty programs like Hilton Honors further enhance customer engagement and drive bookings, contributing to the company’s overall earnings.

Hilton Worldwide Holdings Financial Statement Overview

Summary

Hilton Worldwide Holdings shows strong revenue growth and cash flow generation, reflecting a solid recovery from the pandemic. However, the company faces challenges with high leverage and negative equity, which could pose risks if not addressed. Overall, Hilton's financial health is improving, but careful management of debt and costs will be crucial for sustained growth.

Income Statement

Hilton Worldwide Holdings has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.2% and a strong recovery from the pandemic lows. The company maintains healthy margins, with a TTM gross profit margin of 27.8% and a net profit margin of 14.2%. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects high leverage, with a negative stockholders' equity leading to a concerning debt-to-equity ratio of -2.50 in the TTM. Return on equity is also negative, indicating challenges in generating returns for shareholders. Despite these issues, the equity ratio has improved slightly, suggesting some stabilization in asset management.

Cash Flow

Cash flow performance is robust, with a TTM free cash flow growth rate of 7.8% and a strong free cash flow to net income ratio of 93.2%. The operating cash flow to net income ratio is 53.4%, indicating efficient cash generation relative to earnings. These metrics highlight Hilton's strong cash flow management and ability to generate liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.73B	11.17B	10.23B	8.77B	5.79B	4.31B
Gross Profit	3.26B	3.06B	2.93B	2.70B	1.66B	583.00M
EBITDA	2.76B	2.50B	2.30B	2.31B	1.15B	-164.00M
Net Income	1.67B	1.53B	1.14B	1.25B	410.00M	-715.00M
Balance Sheet
Total Assets	16.64B	16.52B	15.40B	15.51B	15.44B	16.75B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.30B	800.00M	1.21B	1.43B	3.22B
Total Debt	12.35B	12.00B	10.12B	9.69B	9.78B	11.63B
Total Liabilities	21.53B	20.21B	17.75B	16.61B	16.26B	18.24B
Stockholders Equity	-4.93B	-3.73B	-2.36B	-1.10B	-821.00M	-1.49B
Cash Flow
Free Cash Flow	2.34B	1.81B	1.70B	1.58B	30.00M	616.00M
Operating Cash Flow	2.51B	2.01B	1.95B	1.68B	109.00M	708.00M
Investing Cash Flow	-209.00M	-446.00M	-305.00M	-123.00M	-57.00M	-107.00M
Financing Cash Flow	-2.82B	-1.04B	-2.04B	-1.76B	-1.79B	2.03B

Hilton Worldwide Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 308.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLT, the sentiment is Positive. The current price of 308.81 is above the 20-day moving average (MA) of 299.01, above the 50-day MA of 290.02, and above the 200-day MA of 267.64, indicating a bullish trend. The MACD of 3.88 indicates Negative momentum. The RSI at 67.85 is Neutral, neither overbought nor oversold. The STOCH value of 91.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLT.

Hilton Worldwide Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	74 Outperform	$14.46B	27.89	32.28%	3.60%	5.70%	9.53%
IHG	70 Neutral	$21.48B	28.59	―	1.21%	8.89%	23.20%
WH	67 Neutral	$5.69B	16.62	57.98%	2.13%	3.38%	38.04%
HLT	67 Neutral	$71.78B	44.14	―	0.21%	6.68%	48.03%
MAR	65 Neutral	$87.10B	33.63	―	0.84%	4.68%	-1.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
H	56 Neutral	$15.30B	-174.67	-2.45%	0.36%	2.61%	-106.74%

Hilton Worldwide Holdings Corporate Events

Hilton Issues $1 Billion in Senior Notes

On December 10, 2025, Hilton Domestic Operating Company Inc., a subsidiary of Hilton Worldwide Holdings, issued $1 billion in 5.500% Senior Notes due 2034. The proceeds were used to redeem $500 million of its 5.750% Senior Notes due 2028 and for general corporate purposes. This financial maneuver aims to optimize the company’s debt structure and potentially improve its market positioning by reducing interest expenses and extending debt maturity.

The most recent analyst rating on (HLT) stock is a Buy with a $297.00 price target. To see the full list of analyst forecasts on Hilton Worldwide Holdings stock, see the HLT Stock Forecast page.

Hilton Worldwide Announces $1 Billion Senior Notes Sale

On December 1, 2025, Hilton Worldwide Holdings Inc. announced that its subsidiary, Hilton Domestic Operating Company Inc., entered into a purchase agreement for the issuance and sale of $1 billion in Senior Notes due 2034. The proceeds from this offering will be used to redeem the company’s outstanding 5.750% Senior Notes due 2028 and for general corporate purposes. This strategic financial move aims to manage Hilton’s debt profile and support its ongoing corporate activities, potentially impacting its financial stability and market positioning.

The most recent analyst rating on (HLT) stock is a Buy with a $296.00 price target. To see the full list of analyst forecasts on Hilton Worldwide Holdings stock, see the HLT Stock Forecast page.