Hilton Worldwide Holdings Inc. (NYSE:HLT) shares gained slightly on Wednesday after the hotel giant delivered stronger-than-expected quarterly results and highlighted continued expansion across its global portfolio.
Investors focused on steady demand trends and pipeline growth even as the company issued a more measured outlook for the year ahead.
Quarterly Analysis
The firm reported fourth-quarter adjusted earnings per share of $2.08, beating the analyst consensus estimate of $2.02. Quarterly sales of $3.087 billion outpaced the Street view of $2.987 billion.
For the three months ended Dec. 31, 2025, system-wide comparable RevPAR rose slightly year over year, driven by higher average daily rates.
The gain was partially offset by modest declines in occupancy during the period.
Operating income in the quarter under review was $602 million, higher than $489 million a year ago. Adjusted EBITDA was $946 million, higher than $858 million a year ago.
In the fourth quarter, Hilton opened 190 hotels, totaling 26,000 rooms, resulting in 21,300 net room additions.
“We expect to continue to see our Tapestry brand grow, with nearly 20 signings in the fourth quarter,” the company said.
The firm said it added 37,400 rooms to its development pipeline during the fourth quarter, and as of December 31, 2025, the pipeline totaled 3,703 hotels.
“Additionally, of the rooms in the development pipeline, almost half were under construction and more than half were located outside of the U.S,” Hilton added.
Total cash and equivalents were $970 million as of December 31, 2025, including $52 million of restricted cash and cash equivalents.
Outlook
Hilton Worldwide Holdings sees first-quarter GAAP EPS of $1.87-$1.93 versus the $1.78 estimate. The firm sees first-quarter adjusted EPS of $1.91-$1.97 vs. $1.84 estimate.
The company sees fiscal year 2026 GAAP earnings per share in the range of $8.49 to $8.61, compared with the $8.76 analyst estimate.
Hilton Worldwide Holdings sees fiscal year 2026 adjusted EPS of $8.65 to $8.77, compared with the $9.17 analyst estimate.
HLT Price Action: Hilton Worldwide shares are trading higher by 0.01% to $323.78 at last check on Wednesday.
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