Hilton Worldwide (HLT) Investor presentation summary

Value proposition and brand portfolio

• Operates ~9,300 properties with ~1.36 million rooms across 144 countries and territories, offering a diverse range of brands from luxury to midscale and timeshare segments.

• Achieves a 14% global RevPAR index premium, reflecting strong brand performance and customer satisfaction.

• Hilton Honors loyalty program has grown to 251 million members, driving higher occupancy and engagement through innovative features and partnerships.

Business model and financial performance

• Fee-based business model generates ~95% of adjusted EBITDA from management, franchise, and licensing fees, with franchise fees comprising 80% of total fees.

• Franchise fee rates are increasing, with a current in-place rate of 5.0% versus a steady-state rate of 5.6%.

• Free cash flow is approximately 50% of adjusted EBITDA, supporting capital-efficient growth.

Pipeline and growth strategy

• Maintains a high-quality pipeline of ~525,000 rooms, representing about 20% share of the global industry pipeline under construction.

• Over 90% of pipeline rooms require no contract acquisition costs, with third-party investment exceeding $70 billion.

• Net unit growth guidance for 2026 is 6.0%-7.0%, with a balanced global development focus and significant conversion activity.