Hilton Worldwide Holdings Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $11.2 billion, a 9.2% increase from $10.2 billion in 2023. The company’s net income also rose to $1.54 billion, compared to $1.15 billion in the previous year, marking a 33.7% increase. This growth was driven by a 9.7% rise in franchise and licensing fees, which totaled $2.6 billion, and a 7.0% increase in total management fees, amounting to $659 million. The company’s Adjusted EBITDA also saw a notable increase, rising to $3.43 billion from $3.09 billion in 2023.
In terms of operational metrics, Hilton's system-wide revenue per available room (RevPAR) increased by 2.7% to $115.09, supported by a 1.6% rise in average daily rate (ADR) to $159.55 and a slight increase in occupancy rates to 72.1%. The company expanded its global footprint, adding 973 hotels and approximately 98,400 rooms, with a total of 8,447 properties and 1,268,206 rooms across 140 countries and territories as of December 31, 2024. The Hilton Honors loyalty program also grew, reaching 211 million members, a 17% increase from the previous year.
Strategically, Hilton made significant acquisitions, including the Graduate brand for $210 million and a controlling interest in Sydell Hotels & Resorts, which owns the NoMad brand. These acquisitions are expected to enhance Hilton's brand portfolio and expand its market presence. The company also continued its stock repurchase program, repurchasing approximately 13.3 million shares for $2.9 billion during the year, with $4.4 billion remaining available for future repurchases.
Looking ahead, Hilton anticipates continued growth despite challenges posed by inflation and interest rates. The company aims to expand its management and franchise contracts, which are expected to drive revenue growth with limited capital investment. Hilton's management remains optimistic about the recovery of travel demand, particularly in the leisure and business segments, and plans to leverage its strong brand portfolio and loyalty program to capture market share in the evolving hospitality landscape.
About Hilton Worldwide Holdings Inc.
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