HLT Q3 2025 Earnings

Call Details

• Call Title: Hilton Q3 2025 Earnings Call
• Date: October 22, 2025 at 1:00 PM UTC
• Management Team:
  • Charlie Ruehr (Vice President, Corporate Finance and Investor Relations)
  • Chris Nassetta (Chief Executive Officer)
  • Kevin Jacobs (Executive Vice President and Chief Financial Officer)

Call Summary

Financial Performance

• Adjusted EBITDA was $976 million in the third quarter, which was up 8% year-over-year and exceeded the high end of the guidance range.
• Diluted earnings per share adjusted for special items was $2.11 for the quarter on a non-GAAP basis.
• System-wide REFAR decreased 1.1% versus the prior year on a comparable and currency-neutral basis.
• System-wide REBPAR was down approximately 1% year-over-year on a global basis.
• U.S. comparable REVPAR decreased 2.3% in the quarter, driven by business transient and group pressure, holiday shifts, declines in government spend, renovations, and softer international inbound demand.
• Regional performance was mixed with Americas ex-U.S. REVPAR up 4.3%, Europe REVPAR up 1%, Middle East & Africa REVPAR up 9.9%, APAC ex-China up 3.8%, and China REVPAR down 3.1% in the quarter.

Guidance

• For the fourth quarter, system-wide REVPAR growth is expected to be approximately 1%.
• Q4 adjusted EBITDA is guided to a range of $906 million to $936 million, and Q4 diluted EPS adjusted for special items is guided to $1.94 to $2.03.
• For full year 2025, REF PAR growth is expected to be 0% to 1%, adjusted EBITDA is guided to $3.685 billion to $3.715 billion, and diluted EPS adjusted for special items is guided to $7.97 to $8.06.
• Guidance ranges do not incorporate future share repurchases and thus exclude potential incremental EPS impact from buybacks.
• U.S. REVPAR is expected to be roughly flat for full year 2025, and Americas ex-U.S. full year REVPAR is expected in the mid-single digits.
• Europe full year REVPAR is expected to be low single-digit growth, Middle East & Africa is expected to be high single-digit growth for the full year, and Asia-Pacific is expected to be roughly flat assuming modest declines in China.
• Free cash flow conversion is expected to be greater than 50% of adjusted EBITDA for the full year.