Hilton Worldwide Holdings (HLT) AI Stock Analysis

• Market Cap: $64.66B
• Dividend Yield: 0.21%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.91
• 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: 1,445,643
• 30 Day Avg. Volume: 1,534,291
• 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: 1.13
• Enterprise Value/Revenue: 6.20
• Enterprise Value/Gross Profit: 22.30
• Enterprise Value/Ebitda: 26.36
• 1Y Price Target: $287.54
• Price Target Upside: 2.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 8.08
• Revenue Forecast (FY): $11.94B

• Rating: 67 Neutral
• Price Target: $294.00 ▲(4.91% Upside)

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. is a leading global hospitality company that operates a diverse portfolio of hotels and resorts under various brand names, including Hilton, Waldorf Astoria, Conrad, DoubleTree, and Hampton. Established in 1919, Hilton has expanded its presence to over 6,500 properties across 119 countries and territories. The company focuses on providing exceptional guest experiences through its commitment to quality service and innovative hospitality solutions. Hilton also engages in franchise and management services, allowing for a broad range of accommodations catering to various market segments, including luxury, full-service, and focused-service offerings.

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 shows strong financial performance with robust revenue growth and profitability margins. However, the high debt-to-equity ratio and negative stockholders' equity pose financial risks.

Income Statement

Hilton has demonstrated strong revenue growth with a noticeable increase in total revenue from $8.77 billion in 2022 to $11.48 billion in TTM (Trailing-Twelve-Months) 2025, indicating a robust recovery and expansion trajectory. The gross profit margin remains healthy at approximately 30.31%, and the net profit margin also shows solid performance at 13.84%. The company has managed to maintain strong EBIT and EBITDA margins of 21.13% and 16.85%, respectively, over the TTM period. Hilton's profitability margins reflect efficient cost management and strong operational performance.

Balance Sheet

Hilton's balance sheet reveals a high debt-to-equity ratio due to substantial negative stockholders' equity, primarily driven by high total debt levels of $11.69 billion as of TTM 2025. The equity ratio is negative, indicating a high leverage situation which can pose risks in adverse economic conditions. However, the company's return on equity is not calculable due to negative equity, but the net income remains strong, suggesting effective utilization of assets to generate profits.

Cash Flow

The cash flow statement highlights a solid operating cash flow of $2.36 billion in the TTM period, showing a consistent increase from previous years. Free cash flow is also robust at $2.19 billion, demonstrating efficient capital expenditure management and strong cash-generating capability. The free cash flow to net income ratio is favorable, indicating that Hilton effectively converts profits into cash flows. However, the operating cash flow to net income ratio suggests room for improvement in cash conversion efficiency.

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: 280.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 280.24 is above the 20-day moving average (MA) of 274.87, above the 50-day MA of 268.40, and above the 200-day MA of 255.94, indicating a bullish trend. The MACD of 1.95 indicates Positive momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 52.91 is Neutral, 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	$14.37B	27.72	32.28%	3.67%	5.70%	9.53%
IHG	70 Neutral	$20.20B	28.40	―	1.25%	8.89%	23.20%
WH	67 Neutral	$5.72B	17.43	57.98%	2.10%	3.38%	38.04%
HLT	67 Neutral	$64.66B	40.31	―	0.21%	6.68%	48.03%
MAR	62 Neutral	$79.56B	31.31	―	0.88%	4.68%	-1.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
H	56 Neutral	$15.30B	―	-2.45%	0.37%	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.

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.