Hilton Worldwide (NYSE:HLT) executives struck an upbeat tone on the company’s fourth-quarter 2025 earnings call, pointing to improving trends late in the year and into early 2026, continued international strength, and a record development pipeline that management believes supports sustained growth.
Fourth-quarter results: international strength offsets U.S. pressure
For the fourth quarter, Hilton reported system-wide RevPAR growth of 0.5% year over year on a comparable and currency-neutral basis. CEO Chris Nassetta said strong performance internationally and solid group demand were partially offset by softer U.S. government demand and weaker international inbound travel to the U.S.
CFO Kevin Jacobs said fourth-quarter comparable U.S. RevPAR declined 1.6%, attributing the pressure across business transient and group to the prolonged government shutdown. In contrast, the company posted stronger growth across international regions:
- Americas ex-U.S.: RevPAR up 3.8%
- Europe: RevPAR up 5.3%
- Middle East & Africa: RevPAR up 15.9%
- APAC ex-China: RevPAR up 9.2%
- China: RevPAR down 1.4%, improving versus prior quarters but constrained by weaker group demand tied to government travel policy
Nassetta highlighted that December was the strongest month of the quarter, with system-wide RevPAR up 1.7%, supported by leisure and group demand and a “meaningful pickup” in business transient.
Profitability, fees, and capital return
Jacobs reported adjusted EBITDA of $946 billion for the fourth quarter, up 10% year over year and above the high end of the company’s guidance range. He attributed the performance to strength in EMEA, non-RevPAR-driven fees, and continued cost discipline. Management and franchise fees grew 7.4% year over year, and diluted EPS adjusted for special items was $2.08.
For the full year 2025, Nassetta said system-wide RevPAR increased 40 basis points and adjusted EBITDA reached a record $3.7 billion, up 9% year over year. He also said Hilton returned $3.3 billion to shareholders in 2025, which he described as the highest total capital return in the company’s history.
During the fourth quarter, Hilton paid a cash dividend of $0.15 per share, bringing 2025 dividends to $143 million. Jacobs said the board authorized a quarterly dividend of $0.15 per share. For 2026, management expects to return approximately $3.5 billion to shareholders through buybacks and dividends, while noting that guidance ranges do not incorporate future share repurchases.
2026 outlook: modest RevPAR growth with improving trends
Looking ahead, Hilton guided to system-wide RevPAR growth of 1% to 2% for both the first quarter and full year 2026. Nassetta said first-quarter expectations include the impact of recent storms in the U.S., and he emphasized positive trends into early 2026 led by group demand, solid leisure, and continued improvement in business transient.
Jacobs provided additional 2026 expectations by region:
- U.S.: RevPAR growth toward the low end of system-wide guidance
- Americas ex-U.S.: low single-digit RevPAR growth
- Europe: low single-digit RevPAR growth
- Middle East & Africa: mid-single-digit RevPAR growth
- Asia-Pacific: low single-digit RevPAR growth, with China roughly flat
For the first quarter of 2026, Hilton guided to adjusted EBITDA of $875 million to $895 million and diluted EPS adjusted for special items of $1.91 to $1.97. For the full year 2026, the company expects adjusted EBITDA of $4.0 billion to $4.04 billion and diluted EPS adjusted for special items of $8.65 to $8.77.
On the call, Nassetta discussed macroeconomic factors underpinning his view that 2026 could be stronger than 2025, including easing inflation, expectations for lower rates, a “deregulatory environment” in the U.S., and major investment cycles—particularly tied to AI and related energy and infrastructure. He said Hilton is starting to see the improvement it hoped for in areas such as midscale and upper midscale performance, midweek demand, and business transient, though he cautioned the data set is still relatively recent.
Development and brands: record pipeline, conversions, and new launches
Hilton continued to expand its footprint in 2025. Nassetta said the company opened nearly 200 hotels (nearly 26,000 rooms) in the fourth quarter and added nearly 100,000 rooms for the full year, producing net unit growth of 6.7%—its biggest year of organic openings. He said Hilton reached 9,000 hotels globally and celebrated 44 brand country debuts, including first properties in Tanzania, Rwanda, Pakistan, and the U.S. Virgin Islands.
The company’s development pipeline surpassed 520,000 rooms, the highest level in its history. Management said new U.S. development construction starts were up more than 25% in 2025 and expects global construction starts to rise more than 20% in 2026, approaching 2019 levels. Hilton reiterated expectations for 6% to 7% net unit growth in 2026 and beyond.
Conversions remained a meaningful contributor, representing roughly 40% of 2025 room openings. Nassetta said he expects conversions to remain a larger part of Hilton’s growth than the historical average, suggesting a range of 30% to 40% going forward, depending on market conditions.
Hilton also discussed recent and upcoming brand initiatives. Nassetta highlighted the launch of Apartment Collection by Hilton, positioning it as an entry into apartment-style lodging and a potential driver of conversion growth, alongside the newer Outset Collection. In response to an analyst question, Nassetta said two additional brand initiatives were “coming soon,” including:
- A new lifestyle brand positioned between Motto and Canopy
- Undergraduate, described as an extension of the Graduate concept aimed at markets that cannot support a full Graduate (upper upscale) development; he said this launch was expected within about 60 days
Loyalty, AI initiatives, and demand commentary
Nassetta said Hilton Honors is approaching a quarter billion members and described 2025 program changes that created a faster path to elite status and added a new premium tier. He also noted the launch of Hilton Honors Adventures with partnerships including Explora Journeys and AutoCamp.
On AI, Nassetta said Hilton is investing significant time across the organization and argued the company’s “modern tech stack” provides flexibility to adopt AI for efficiencies, distribution, and customer experience improvements. He said Hilton is working with major technology players and is involved in testing and connectivity efforts, while also developing features within its own platforms that he suggested could begin to appear in the second quarter.
On group demand, management said it expects group to be an outperformer in 2026. Nassetta said Hilton entered the year with group position up in the mid-single digits system-wide and described booking windows as stable, ticking from 26 days to 27 days since the prior quarter.
About Hilton Worldwide (NYSE:HLT)
Hilton Worldwide Holdings Inc is a global hospitality company that develops, owns, manages and franchises a broad portfolio of hotels and resorts. Its business spans full-service luxury and lifestyle properties, select- and focused-service hotels, and extended-stay accommodations. The company generates revenue through management and franchise fees, owned and leased real estate, and guest services, and supports customer retention and direct bookings through its Hilton Honors guest loyalty program.
Hilton’s brand portfolio includes internationally recognized names across the lodging spectrum, from luxury and upper-upscale brands to midscale and extended-stay offerings.
