Hilton Beats Estimates in Fiscal Q2
Key Points
Hilton reported adjusted EPS of $2.20 for Q2 2025, beating the estimate of $2.05.
Revenue rose to $3.14 billion, also ahead of expectations, with fee-based income offsetting slight RevPAR declines.
Full-year RevPAR guidance remains flat to up 2%, reflecting near-term demand softness but confidence in expansion and new pipeline growth.
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Hilton Worldwide (NYSE:HLT), the global hotel company behind a wide range of hospitality brands, released its Q2 2025 results on July 23, 2025. The company delivered earnings per share above analyst expectations and reported revenue that also surpassed estimates. Fee revenue growth helped drive the quarter, even as revenue per available room (RevPAR) saw a modest decline compared to the prior year. Overall, Hilton outperformed consensus forecasts, but the results also signaled a pause in topline growth trends as demand softened in some markets.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS | $2.20 | $2.05 | $1.91 | 15.2% |
| Revenue | $3.14 billion | $3.10 billion | $2.95 billion | 6.3% |
| Net income | $442 million | $422 million | 4.7% | |
| Adj. EBITDA | $1.01 billion | $917 million | 9.9% | |
| System-wide Comparable RevPAR | $121.79 | $122.40 | (0.5%) |
Source: Hilton Worldwide. Note: Estimate and guidance figures are based on company outlook and analyst consensus.
About Hilton Worldwide: Business Model and Key Success Factors
The company is a leading global hospitality group that operates, franchises, and licenses hotels and resorts under a variety of brands, ranging from luxury to economy. Its core business model is asset-light, meaning it primarily manages or franchises hotels rather than owning the properties. This approach reduces capital requirements and generates steady income from management and franchise fees.
Hilton has focused on expanding its global portfolio and growing its pipeline of new hotels, especially outside the United States. The company relies on its diversified brand offerings and the Hilton Honors loyalty program to drive repeat business. Key drivers of success include robust unit growth, strong fee-based revenues, and brand strength across customer segments from business travelers to leisure guests.
Quarter Highlights: Financial, Brand, and Regional Trends
Hilton’s results exceeded analyst expectations for both non-GAAP earnings per share and revenue. Adjusted EBITDA, which measures earnings before interest, taxes, depreciation, and amortization, increased compared to the prior year period. Net income for the quarter also rose from the same period last year. The company’s profit margin at the EBITDA level expanded, while the net income margin remained steady.
System-wide comparable RevPAR, a key industry metric that measures revenue per available room, declined slightly compared to the prior year. This ended a multiquarter streak of RevPAR gains and reflected softer demand, calendar and holiday shifts, and some international headwinds. The average daily rate (ADR), which is the average price paid per hotel room, edged up, while occupancy slipped by half a percentage point.
Regional results were mixed. In the United States, RevPAR declined, with both occupancy and ADR slightly lower than the prior year. International markets helped offset this, with the Middle East and Africa delivering double-digit RevPAR growth, Europe posting a modest increase, and the Americas excluding the U.S. also rising. Asia-Pacific saw modest growth in RevPAR, though occupancy was slightly down.
Management and franchise fee income increased compared to the prior year, with franchise and licensing fees and incentive management fees both showing growth. The quarter also saw continued expansion in luxury and lifestyle hotel brands. Waldorf Astoria, part of the luxury category, posted a notable year-over-year rise in RevPAR. The Curio Collection, a lifestyle hotel group, also saw a gain in RevPAR. While midscale brands like Hampton and Home2 Suites experienced slight declines in RevPAR and occupancy, the strength in higher-tier brands and international locations helped balance these pressures.
Hilton advanced its growth pipeline to a record number of rooms and hotels as of June 30, 2025. Nearly half of the pipeline is under construction, and more than half is located outside the United States, underscoring Hilton’s geographic diversification strategy. Net unit growth was strong, with thousands of rooms added during the period. Conversions, where existing hotels rebrand to a Hilton flag, made up a significant portion of new openings in the first quarter of the year, providing flexibility amid elevated construction costs and global uncertainty.
On the balance sheet, net debt increased, and the leverage ratio (net debt-to-EBITDA) remained stable. Hilton returned capital to shareholders through buybacks and dividends, repurchasing millions of shares during the quarter and maintaining its quarterly dividend at $0.15 per share.
Outlook and What Lies Ahead
Hilton’s management reaffirmed its full-year 2025 guidance for system-wide comparable RevPAR growth to be flat to up 2.0%. Adjusted EPS (non-GAAP) is projected in the range of $7.83 to $8.00 for fiscal 2025, and adjusted EBITDA is estimated to be between $3.65 billion and $3.71 billion for the year. Net unit growth guidance stands at 6.0–7.0%. Leadership noted continued economic uncertainty, soft inbound international demand, and reduced U.S. government spending as short-term headwinds. However, management remains optimistic for improved travel demand over the intermediate term, supported by limited new hotel supply and Hilton’s development pipeline. For the third quarter, adjusted EPS is expected to be between $1.98 and $2.04.
The quarterly dividend was maintained at $0.15 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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