Hilton Worldwide Holdings Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Diluted EPS was $2.37 for the third quarter, compared to $1.78 in the same period in 2025; adjusted diluted EPS was $2.45 versus $2.11.
• Net income was $536 million for the third quarter, up from $421 million in the prior year period.
• Adjusted EBITDA was $1,058 million for the third quarter, an increase from $976 million in the prior year period.
• For the nine months ended September 30, 2026, diluted EPS was $6.13 (vs. $4.84), adjusted diluted EPS was $6.75 (vs. $6.03), net income was $1,401 million (vs. $1,163 million), and Adjusted EBITDA was $3,013 million (vs. $2,779 million).
• Management and franchise fee revenues increased 9.5% in the third quarter and 8.7% for the nine months ended September 30, 2026, compared to the same periods in 2025.
• Total revenues were $3,325 million for the third quarter and $9,603 million for the nine months ended September 30, 2026.
• Net income margin was 16.1% for the third quarter and 14.6% for the nine months ended September 30, 2026.
• Adjusted EBITDA margin was 77.0% for the third quarter and 76.3% for the nine months ended September 30, 2026.
• As of September 30, 2026, long-term debt was $13.5 billion (excluding unamortized deferred financing costs and discount) with a weighted average interest rate of 5.09%.
• Net debt was $12,623 million as of September 30, 2026.
• The net debt to Adjusted EBITDA ratio was 3.2x for the trailing twelve months ended September 30, 2026.
• Total cash and cash equivalents were $830 million as of September 30, 2026.

Guidance and Future Outlook:

• Full year 2026 system-wide comparable RevPAR is projected to increase between 4.0% and 4.5% on a currency neutral basis compared to 2025.
• Full year 2026 diluted EPS is projected to be between $8.38 and $8.44; adjusted diluted EPS is projected to be between $9.07 and $9.13.
• Full year 2026 net income is projected to be between $1,909 million and $1,923 million.
• Full year 2026 Adjusted EBITDA is projected to be between $4,060 million and $4,080 million.
• Full year 2026 capital return is projected to be approximately $3.5 billion.
• Full year 2026 net unit growth is projected to be between 6.0% and 7.0%, with expectations around the midpoint.
• Fourth quarter 2026 system-wide comparable RevPAR is projected to increase between 3.0% and 3.5% on a currency neutral basis compared to the fourth quarter of 2025.
• Fourth quarter 2026 diluted EPS is projected to be between $2.25 and $2.31; adjusted diluted EPS is projected to be between $2.32 and $2.38.
• Fourth quarter 2026 net income is projected to be between $508 million and $522 million.
• Fourth quarter 2026 Adjusted EBITDA is projected to be between $1,047 million and $1,067 million.
• Fourth quarter 2026 contract acquisition costs and capital expenditures are projected to be between $350 million and $375 million.
• Fourth quarter 2026 general and administrative expenses are projected to be approximately $400 million.
• The fourth quarter outlook incorporates lower expectations for performance in the Middle East and timeshare license fees compared to prior guidance.
• The fourth quarter is expected to be affected by midterm elections and increased impact from the Middle East.

Business Segments and Product Lines:

• System-wide comparable RevPAR increased 5.8% on a currency neutral basis in the third quarter, driven by increases in both occupancy and ADR.
• Net unit growth was 6.0% from September 30, 2025.
• The company added 27,000 rooms to the system in the third quarter, resulting in 23,000 net additional rooms.
• The development pipeline totaled 543,100 rooms as of September 30, 2026, representing a 5% growth from September 30, 2025.
• 30,500 new rooms were approved for development during the third quarter.
• The company opened 182 hotels totaling 27,000 rooms in the third quarter.
• Notable openings included the debut of Curio Collection by Hilton in Hawaii, LXR Hotels & Resorts in India, and Select by Hilton.
• The company opened its first hotels under the Select by Hilton brand.
• The opening of the Hilton Istanbul Airport marked the 100th hotel in Türkiye.
• More than 20 signings occurred in the Middle East & Africa region during the quarter.
• The pipeline includes new signings across Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, and LXR Hotels & Resorts.
• Nearly half of the rooms in the development pipeline were under construction, and more than half were located outside the U.S.
• As of September 30, 2026, the system comprised 9,620 properties and over 1.4 million rooms in 144 countries and territories.

Market and Competitive Landscape:

• The company expects momentum across its system to continue for the remainder of 2026 and into 2027.
• The company achieved its highest quarter ever for organic openings.
• The company continues to expand its global luxury development pipeline.
• The company maintains industry-leading technology innovation commitments.

Risks and Challenges:

• The fourth quarter outlook reflects lower expectations for performance in the Middle East.
• The fourth quarter is expected to be affected by midterm elections.
• Forward-looking statements are subject to risks including macroeconomic factors, inflation, interest rate changes, labor shortages, supply chain disruptions, geopolitical conflicts (including Iran), and political trends.
• Risks include competition for hotel guests and management contracts, performance of IT systems, growth of reservation channels outside the system, and indebtedness.

Management Commentary and Tone:

• Christopher J. Nassetta, President & CEO, stated the company delivered strong top and bottom-line results that exceeded expectations.
• Management expressed confidence in delivering net unit growth around the midpoint of the 6.0% to 7.0% full-year guidance range.
• The tone indicates strong momentum and confidence in the business trajectory through 2027.

Other Key Points:

• Jeff Moore was appointed Executive Vice President and Chief Technology Officer to strengthen the company's technology platform.
• Hilton announced the transfer of its stock listing to Nasdaq under the ticker "HLT," effective November 5, 2026.
• The company repurchased 2.6 million shares of common stock in the third quarter at an average price of $320.05 per share.
• Total capital return for the third quarter, including dividends, was $879 million; year-to-date through October, it was $2,902 million.
• A quarterly cash dividend of $0.15 per share was paid in September 2026, totaling $34 million.
• The board authorized a regular quarterly cash dividend of $0.15 per share to be paid on December 29, 2026.
• As of October 22, 2026, there were 222.5 million shares outstanding.
• The company has sufficient liquidity and access to debt financing to address the $600 million Senior Notes due April 2027.
• No borrowings were outstanding under the senior secured revolving credit facility as of September 30, 2026, which had an available borrowing capacity of $1,894 million.