Hilton reports second‑quarter earnings that surpass analyst expectations

Adjusted earnings and revenue exceed forecasts

Hilton reported diluted earnings per share of US$2.20 for the three months ended June 30, compared to US$1.55 for the same period in 2024. Analysts surveyed by LSEG had expected earnings of US$2.04 per share. Revenue rose 6.3 per cent year over year to US$3.14 billion, exceeding consensus estimates by approximately US$40 million. Net income for the quarter was US$442 million, up from US$422 million in Q2 2024. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 10 per cent to US$1.01 billion.

RevPAR edges lower

System-wide comparable RevPAR decreased 0.5 per cent on a currency-neutral basis. The company attributed the dip to a softer performance in business transient segments and a shift in holiday timing, which reduced group and corporate volumes. Leisure demand remained steady, bolstered in part by the timing of school breaks.

Development pipeline reaches 510,000 rooms

Hilton added approximately 22,600 rooms to its global system during the quarter, contributing to net unit growth of 7.5 per cent year over year. The company approved 36,200 new rooms for development, bringing its total pipeline to 510,600 rooms as of the end of June. During the quarter, Hilton also celebrated the opening of its 1,000th hotel in the luxury and lifestyle categories.

Share repurchases and debt issuance

Hilton returned US$791 million to shareholders through the repurchase of 3.2 million shares during the second quarter. Year-to-date returns to shareholders now total US$1.88 billion. The company also completed a US$1 billion debt offering of 5.75 per cent senior notes due 2033.

Full-year guidance revised upward

Hilton raised its full-year forecast for adjusted EPS to a range of US$7.83 to US$8.00, up from its prior guidance of US$7.76 to US$7.94. The company expects full-year adjusted EBITDA between US$3.65 billion and US$3.71 billion, with net income projected in the range of US$1.64 billion to US$1.68 billion. RevPAR for the full year is now expected to range from flat to up two per cent on a currency-neutral basis.

CEO comments

“Despite macroeconomic uncertainty, we continue to see resilient demand across our portfolio,” says Christopher J. Nassetta, president and chief executive officer of Hilton, in a statement. “We opened more than 90 hotels during the quarter and reached the milestone of 1,000 open hotels across our luxury and lifestyle segments.” Nassetta adds that Hilton remains on track to deliver 6 to 7 per cent net unit growth for the full year.

Implications for Canadian market

While Hilton does not break out Canadian results in its quarterly filings, broader North American trends suggest stable leisure demand and cautious corporate travel recovery. The brand’s continued expansion in the luxury and lifestyle segments may present new opportunities for owners and developers in major Canadian markets.