Hilton Worldwide Holdings Inc. HLT shares are rising on Tuesday.
The company reported first-quarter adjusted earnings per share of $1.72, beating the street view of $1.61. Quarterly sales of $2.69 billion missed the analyst consensus estimate of $2.72 billion.
Adjusted EBITDA for the first quarter was $795 million, compared with $750 million a year ago.
Adjusted EBITDA margin expanded to 73.7% from 70.4% in the year-ago period.
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System-wide comparable RevPAR increased 2.5%, on a currency-neutral basis, for the first quarter compared to the same period in 2024.
Quarterly net income margin expanded to 11.1% from 10.4%.
In the first quarter of 2025, the company opened 186 hotels, totaling 20,100 rooms, resulting in 14,000 net room additions.
“We continued to grow our pipeline of lifestyle properties during the quarter, adding the Tempo by Hilton brand in the U.K., marking the brand’s first hotel outside of the U.S., the first Tapestry Collection by Hilton and Curio Collection by Hilton hotels in Athens, Greece and Canopy by Hilton in Utah, representing the brand’s first ski destination,” the company said.
As of March 31, the firm had $11.2 billion of debt outstanding, excluding the deduction for deferred financing costs and discount.
Total cash and equivalents were $807 million as of March 31, 2025, including $76 million of restricted cash and cash equivalents.
The firm repurchased 3.7 million shares of Hilton common stock during the first quarter, bringing total capital return, including dividends, to $927 million for the quarter and $1,157 million year to date through April.
In April 2025, the company’s board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on June 27.
Outlook: Hilton Worldwide raised its full-year 2025 adjusted EPS guidance to $7.76–$7.94, up from the previous range of $7.71–$7.82.
The updated full-year outlook compares with the $7.93 analyst estimate.
For the second quarter, Hilton expects adjusted EPS between $1.97 and $2.02, below the $2.11 estimate.
Price Action: HLT shares are trading lower by 1.30% to $224.27 at the last check on Tuesday.
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