Hilton Reports $2.695 Billion Revenue in Q1 2025, Up 4.7% Year-Over-Year

Hilton Worldwide Holdings Inc. reported a total revenue of $2.695 billion for the first quarter of 2025, marking an increase of 4.7% from $2.573 billion in the same period of 2024. The company's net income rose to $300 million, up from $268 million year-over-year, resulting in earnings per share of $1.25, compared to $1.05 in the prior year. The increase in revenue was primarily driven by a 9.5% rise in franchise and licensing fees, which reached $625 million, and a 2.9% increase in incentive management fees. However, base and other management fees decreased by 17% to $88 million, reflecting a decline in termination fees from hotels exiting the system.

In terms of operational metrics, Hilton's system-wide revenue per available room (RevPAR) increased by 2.5% during the quarter, supported by a 1.8% rise in average daily rate (ADR) and a 0.4% increase in occupancy. The Americas region, excluding the U.S., saw a notable 7.7% increase in RevPAR, driven by special events and increased leisure travel. The company also reported a 16% growth in its Hilton Honors loyalty program membership, reaching 218 million members as of March 31, 2025.

Strategically, Hilton completed the acquisition of the Graduate brand for $210 million in May 2024 and gained a controlling interest in the Sydell Group, which owns the NoMad brand. These acquisitions are expected to enhance Hilton's brand portfolio and expand its market presence. The company continues to focus on expanding its global hotel network, with 186 new hotel openings and a development pipeline of 3,600 hotels across 123 countries and territories as of March 31, 2025.

Financially, Hilton's total assets decreased to $16.043 billion from $16.522 billion at the end of 2024, while total liabilities increased to $20.382 billion. The company reported cash and cash equivalents of $807 million, down from $1.420 billion a year earlier. Hilton's cash flow from operating activities improved significantly, increasing by 30.6% to $452 million, while cash used in investing activities rose to $50 million from $27 million in the previous year. The company repurchased approximately 3.7 million shares for $890 million during the quarter, with $3.5 billion remaining available for future share repurchases.

Looking ahead, Hilton remains optimistic about its growth trajectory, despite challenges posed by inflation and interest rates. The company anticipates continued revenue growth driven by its expanding hotel portfolio and increased demand for travel. Hilton's management emphasized their commitment to maintaining liquidity and operational efficiency while navigating the evolving market conditions.