Hilton Worldwide Holdings Inc. posted a strong start to 2025, showcasing its resilience in the face of a softer macroeconomic environment. In the first quarter, total revenues rose to $2.70 billion, up 4.7% year-over-year, while net income climbed to $300 million, marking an 11.9% increase from Q1 2024. Adjusted EBITDA reached $795 million, up 6% from the prior year, supported by solid performance across its fee-based operations.

Earnings per share also showed impressive growth. Diluted EPS came in at $1.23, up from $1.04, while adjusted diluted EPS—excluding special items—advanced 12.4% to $1.72. Hilton returned significant capital to shareholders, repurchasing 3.7 million shares for $890 million and distributing $37 million in dividends, bringing total capital returns to $927 million for the quarter and $1.16 billion year-to-date through April.

Revenue performance was led by continued strength in franchise and licensing fees, which grew 9.5% year-over-year to $625 million. While base management fees declined 17%, incentive management fees rose 2.9%. Ownership segment revenues fell 8.2%, reflecting Hilton’s ongoing pivot toward an asset-light strategy. Cost reimbursement revenues—largely tied to managed and franchised properties—grew 7.2% to $1.63 billion.

Hilton's operating metrics underscored stable demand. System-wide comparable RevPAR increased 2.5% to $103.59, driven by gains in both occupancy (up 0.4 pts to 66.8%) and ADR (up 1.8% to $155.07). RevPAR growth was particularly strong in the Middle East & Africa (+8.5%), Americas ex-U.S. (+7.7%), and Europe (+2.6%), while the Asia Pacific region remained flat, reflecting mixed results between China (-3.1%) and the rest of APAC (+3.5%).

Development momentum remained a highlight. Hilton opened 186 hotels totaling 20,100 rooms during the quarter—a 20% increase in new openings—resulting in net unit growth of 7.2%. Conversions accounted for roughly 40% of new openings, with brands like DoubleTree and Spark leading the way. The company’s global pipeline grew 7% year-over-year, reaching 3,600 hotels and over 503,000 rooms, with nearly half under construction and the majority located outside the U.S.

Hilton’s balance sheet remains strong, with $11.1 billion in total debt (excluding finance leases), a weighted average interest rate of 4.76%, and no major debt maturities until April 2027 apart from $500 million due in May 2025, which will be repaid using existing liquidity. As of quarter-end, the company held $807 million in cash and equivalents, with full availability under its $2.0 billion revolving credit facility.

Looking ahead, Hilton expects full-year 2025 adjusted EBITDA between $3.65 billion and $3.71 billion and adjusted EPS of $7.76 to $7.94. System-wide RevPAR is projected to be flat to up 2%, and net unit growth is targeted at 6–7%. The company anticipates returning approximately $3.3 billion to shareholders over the full year. For Q2, Hilton forecasts adjusted EBITDA of $940–$960 million and adjusted EPS between $1.97 and $2.02, with RevPAR expected to remain roughly flat year-over-year.

Management acknowledged softer leisure demand in March but highlighted ongoing strength in the group (+6% YoY RevPAR) and business transient segments (+2%), especially among small and midsize businesses. They also pointed to outsized growth from non-RevPAR fee streams, such as credit card partnerships and timeshare operations, which are expected to remain above their historical growth algorithm. With a robust development pipeline, strong international momentum, and disciplined capital returns, Hilton remains well-positioned to drive long-term shareholder value despite near-term macroeconomic uncertainties.