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Hilton Exceeds Fourth Quarter and Full Year Expectations, Provides 2018 Outlook

Hilton Worldwide Holdings Inc. (“Hilton” or the “Company”) (No. 30 on the DiversityInc Top 50 Companies list) has reported its fourth quarter and full year 2017 results.


All results herein present the performance of Hilton giving effect to the spin-offs of Park Hotels & Resorts Inc. (“Park”) and Hilton Grand Vacations Inc. (“HGV”) on January 3, 2017 (the “spin-offs”), with the historical financial results of Park and HGV reflected as discontinued operations.

Pro forma comparisons are presented as if the spin-offs occurred on January 1, 2016. Additionally, all share and share-related information presented herein for periods prior to January 3, 2017 have been retrospectively adjusted to reflect the 1-for-3 reverse stock split of Hilton’s outstanding common stock that occurred on January 3, 2017 (the “Reverse Stock Split”).

Highlights include:

  • Diluted EPS was $2.61 for the fourth quarter and $3.85 for the full year, including, in each case, the provisional effect of tax reform; diluted EPS, adjusted for special items, was $0.54 for the fourth quarter and $2.00 for the full year; on a pro forma basis, diluted EPS, adjusted for special items, increased six percent from the fourth quarter of 2016 and 27 percent from full year 2016
  • Net income was $841 million for the fourth quarter and $1,264 million for the full year, including, in each case, a $665 million provisional tax benefit for tax reform that occurred in the fourth quarter
  • Adjusted EBITDA was $498 million for the fourth quarter, an increase of 10 percent from pro forma Adjusted EBITDA for the fourth quarter of 2016; Adjusted EBITDA was $1,965 million for the full year, an increase of 11 percent from pro forma Adjusted EBITDA for full year 2016
  • Adjusted EBITDA margin was 56.2 percent for the full year, an increase of 260 basis points from pro forma Adjusted EBITDA margin for full year 2016
  • System-wide comparable RevPAR increased 3.8 percent and 2.5 percent for the fourth quarter and full year 2017, respectively, on a currency neutral basis from the same periods in 2016
  • Added 18,400 net rooms in the fourth quarter, totaling 51,600 net rooms for the full year, representing 6.5 percent net unit growth
  • Approved 31,000 new rooms for development during the fourth quarter, growing Hilton’s development pipeline to 345,000 rooms, representing 11 percent growth from December 31, 2016
  • Repurchased 3.5 million shares of Hilton common stock for an aggregate cost of $266 million during the fourth quarter, bringing total capital return for the full year, including dividends, to approximately $1.1 billion
  • Full year 2018 net income is projected to be between $802 million and $837 million; Adjusted EBITDA, excluding the application of the new revenue recognition standard, is projected to be between $2,090 million and $2,140 million; Adjusted EBITDA, reflecting the application of the new revenue recognition standard, is projected to be between $2,030 million and $2,080 million, growing 6 percent to 9 percent
  • Cash available for capital return is projected to be between $1.2 billion and $1.6 billion; net unit growth is expected to be 6.5 percent

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