Executive Summary
Hilton Worldwide Holdings Inc reported a solid QQ4 2024 with revenue of $2.783 billion, up 6.7% year over year, and a resilient profitability backdrop underscored by a 24.04% gross margin and an 18.1% net margin. The quarter delivered $532 million of EBITDA and $582 million of operating cash flow, contributing to a free cash flow generation of $503 million. Net income rose sharply to $505 million, driving EPS (diluted) to $2.05, supported by favorable mix and cost discipline despite ongoing macro and operational headwinds typical of a lodging cycle.
However, the balance sheet presents a material leverage challenge: total debt stands at $12.0 billion with net debt of roughly $10.7 billion and negative stockholders’ equity of about $3.7 billion. This annual and quarterly profitability strength sits against a backdrop of substantial liabilities that translate into a high debt-to-capitalization profile (reported around 1.41x) and a negative book value per share. While Hilton generated meaningful free cash flow and executed a sizable share repurchase (~$766 million) in the period, the aggressive leverage requires ongoing attention to deleveraging dynamics and capital allocation strategy. The absence of explicit quarterly forward guidance in the data requires a cautious stance on the near-term trajectory, though the travel-and-leisure backdrop remains a positive catalyst for continued revenue resilience and brand-driven profitability.
Key Performance Indicators
QoQ: -21.51% | YoY:22.25%
QoQ: 46.80% | YoY:243.54%
QoQ: 48.57% | YoY:264.91%
Key Insights
Revenue: $2.783B, YoY +6.7%, QoQ -2.93% | Gross Profit: $669M, Gross Margin 24.04%, YoY +9.14%, QoQ -15.21% | Operating Income: $489M, Margin 17.57%, YoY +22.25%, QoQ -21.51% | Net Income: $505M, Margin 18.15%, YoY +243.54%, QoQ +46.80% | EPS (Diluted): $2.05, EPS: $2.08, YoY +264.91%, QoQ +48.57% | EBITDA: $532M, EBITDA Margin ~19.12% | Free Cash Flow: $503M; Operating Cash Flow: $582M; Capex: $79M; Cash at End: $1.376B; Net Debt: ~$10.7B; Total Debt: $12.0B; Cash & Equivalents: $1.301B; Eq...
Financial Highlights
Revenue: $2.783B, YoY +6.7%, QoQ -2.93% | Gross Profit: $669M, Gross Margin 24.04%, YoY +9.14%, QoQ -15.21% | Operating Income: $489M, Margin 17.57%, YoY +22.25%, QoQ -21.51% | Net Income: $505M, Margin 18.15%, YoY +243.54%, QoQ +46.80% | EPS (Diluted): $2.05, EPS: $2.08, YoY +264.91%, QoQ +48.57% | EBITDA: $532M, EBITDA Margin ~19.12% | Free Cash Flow: $503M; Operating Cash Flow: $582M; Capex: $79M; Cash at End: $1.376B; Net Debt: ~$10.7B; Total Debt: $12.0B; Cash & Equivalents: $1.301B; Equity: -$3.727B; Dividend Payout: $37M; Share Repurchases: $766M. | Valuation (as of QQ4 2024 data): P/E ~30.0x, P/B negative due to negative equity, Price/Sales ~21.8x, Enterprise Value Multiple ~136.5x; Dividend Yield ~0.061%; FCF Yield ~18% of Revenue; Debt-to-Capitalization ~1.41x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.78B |
6.67% |
-2.93% |
| Gross Profit |
669.00M |
9.14% |
-15.21% |
| Operating Income |
489.00M |
22.25% |
-21.51% |
| Net Income |
505.00M |
243.54% |
46.80% |
| EPS |
2.08 |
264.91% |
48.57% |
Key Financial Ratios
operatingProfitMargin
17.6%
operatingCashFlowPerShare
$2.4
freeCashFlowPerShare
$2.2
dividendPayoutRatio
7.33%
Management Commentary
Earnings call transcript not provided in the input data. As a result, there are no management quotes or thematic highlights to extract from an accompanying call transcript.
Forward Guidance
No explicit forward guidance was included in the provided data. Consequently, the analysis relies on qualitative views tied to industry dynamics and Hilton’s reported metrics. Investors should monitor: (1) occupancy recovery and Average Daily Rate (ADR) progression, (2) mix shift between owned, managed, and franchised platforms, (3) group/convention demand and pipeline, (4) variable cost containment versus fixed cost leverage, (5) deleveraging progress reflected in net debt and debt-to-capitalization, and (6) capital allocation decisions (share repurchases versus debt reduction) given the negative book value. If demand remains robust and Hilton executes on deleveraging and capital discipline, the earnings power and free cash flow profile could support a multi-year improvement trajectory despite leverage headwinds.