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MCLEAN, Va.–(BUSINESS WIRE)–Hilton Worldwide Holdings Inc. (“Hilton” or the “Company”) (NYSE: HLT) today reported its second quarter 2020 results. The following results reflect the material impact that the novel coronavirus (“COVID-19”) pandemic had on Hilton’s business. Highlights include:


  • Diluted EPS was $(1.55) for the second quarter, and diluted EPS, adjusted for special items, was $(0.61)
  • Net loss was $432 million for the second quarter
  • Adjusted EBITDA was $51 million for the second quarter
  • System-wide comparable RevPAR decreased 81.0 percent on a currency neutral basis for the second quarter from the same period in 2019
  • Approved 18,400 new rooms for development during the second quarter, growing Hilton’s development pipeline to 414,000 rooms as of June 30, 2020, representing 11 percent growth from June 30, 2019
  • Opened 6,800 rooms in the second quarter, contributing to 5,500 net additional rooms in Hilton’s system
  • As of July 31, 2020, 96 percent of Hilton’s system-wide hotels were open
  • Launched Hilton CleanStay, a new program created in collaboration with RB, maker of Lysol and Dettol, and Mayo Clinic, to deliver an elevated standard of cleanliness and disinfection to properties worldwide, and Hilton EventReady, which focuses on cleanliness and customer service specific to meetings and events
  • Announced a new strategic partnership with Country Garden to develop 1,000 Home2 Suites by Hilton in China, representing the first major extended stay offering for Hilton outside of North America

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, “Our second quarter results reflect the challenges that our business has experienced as a result of the pandemic. However, as restrictions are lifting and properties around the world are reopening, we are seeing improved occupancy. While we have a long journey in front of us, we are on the road to recovery and look forward to the opportunities ahead.”

On a global level, the pervasive impact of COVID-19 began in March, with its most significant adverse impact on occupancy and RevPAR in April. Since April, all major regions have experienced month over month increases in occupancy and RevPAR. Hilton experienced the most notable recoveries in the U.S. and Asia Pacific with occupancy levels up approximately 20 percentage points and 15 percentage points, respectively, from April to June. Hilton announced a corporate restructuring in June 2020 to organize its business to be best suited to operate through the pandemic and beyond. Costs relating to the reorganization were recognized in the quarter and accrued as of June 30, 2020.

For the three and six months ended June 30, 2020, system-wide comparable RevPAR decreased 81.0 percent and 53.9 percent, respectively, due to both occupancy and ADR decreases. Additionally, management fee and franchise and licensing fee revenues decreased 77 percent and 50 percent during the three and six months ended June 30, 2020, respectively. The decreases were due to the COVID-19 pandemic and the related reduction in global travel and tourism, which required the complete or partial suspensions of hotel operations at approximately 20 percent of Hilton’s properties at some point during the six months ended June 30, 2020, of which over half of the properties had reopened as of June 30, 2020.

For the three months ended June 30, 2020, diluted EPS was $(1.55) and diluted EPS, adjusted for special items, was $(0.61) compared to $0.89 and $1.06, respectively, for the three months ended June 30, 2019. Net income (loss) and Adjusted EBITDA were $(432) million and $51 million, respectively, for the three months ended June 30, 2020, compared to $261 million and $618 million, respectively, for the three months ended June 30, 2019.

For the six months ended June 30, 2020, diluted EPS was $(1.48) and diluted EPS, adjusted for special items, was $0.13 compared to $1.42 and $1.85, respectively, for the six months ended June 30, 2019. Net income (loss) and Adjusted EBITDA were $(414) million and $414 million, respectively, for the six months ended June 30, 2020, compared to $420 million and $1,117 million, respectively, for the six months ended June 30, 2019.

Development

In the second quarter of 2020, Hilton opened 60 new hotels totaling 6,800 rooms, and achieved net unit growth of over 5,500 rooms.

Additionally, during the quarter, Hilton entered into an exclusive management license agreement with Country Garden to introduce and develop Home2 Suites by Hilton branded properties in China. Hilton believes Home2 Suites, as an affordable extended stay, upper midscale offering, is well positioned to capture growth opportunities resulting from the growing spending power of consumers in China’s smaller cities.

As of June 30, 2020, Hilton’s development pipeline totaled over 2,700 hotels consisting of nearly 414,000 rooms throughout 121 countries and territories, including 35 countries and territories where Hilton does not currently have any open hotels. Additionally, of the rooms in the development pipeline, 234,000 rooms were located outside the U.S., and 222,000 rooms were under construction.

Balance Sheet and Liquidity

As of June 30, 2020, Hilton had $10.6 billion of long-term debt outstanding, excluding deferred financing costs and discount, with a weighted average interest rate of 3.91 percent. Excluding finance lease liabilities and other debt of Hilton’s consolidated variable interest entities, Hilton had $10.3 billion of long-term debt outstanding with a weighted average interest rate of 3.86 percent and no maturities until 2024. Total cash and cash equivalents were $3,575 million as of June 30, 2020, including $72 million of restricted cash and cash equivalents.

In March 2020, Hilton suspended share repurchases and the payment of dividends, as a result of efforts to preserve capital and maintain liquidity. No share repurchases were made after March 5, 2020 and no dividends were declared or paid during the three months ended June 30, 2020. The stock repurchase program remains authorized by the board of directors and the amount remaining under Hilton’s stock repurchase program is approximately $2.2 billion.

Conference Call

Hilton will host a conference call to discuss second quarter 2020 results on August 6, 2020 at 10:00 a.m. Eastern Time. Participants may listen to the live webcast by logging on to the Hilton Investor Relations website at https://ir.hilton.com/events-and-presentations. A replay and transcript of the webcast will be available within 24 hours after the live event at https://ir.hilton.com/financial-reporting/quarterly-results/2020.

Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States (“U.S.”) or 1-412-317-6061 internationally using the conference ID 0333617. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-877-344-7529 in the U.S. or 1-412-317-0088 internationally using the conference ID 10145887.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to the expectations regarding the impact of the COVID-19 pandemic, the performance of Hilton’s business, financial results, liquidity and capital resources and other non-historical statements. In some cases, these forward-looking statements can be identified by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks related to the impact of the COVID-19 outbreak, risks inherent to the hospitality industry, macroeconomic factors beyond Hilton’s control, competition for hotel guests and management and franchise contracts, risks related to doing business with third-party hotel owners, performance of Hilton’s information technology systems, growth of reservation channels outside of Hilton’s system, risks of doing business outside of the U.S. and Hilton’s indebtedness. Additional factors that could cause Hilton’s results to differ materially from those described in the forward-looking statements can be found under the section entitled “Part I—Item 1A. Risk Factors” of Hilton’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and “Part II —Item 1A. Risk Factors” of Hilton’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, filed with the Securities and Exchange Commission (the “SEC”), as supplemented in Hilton’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020, which is expected to be filed on or about the date of this press release, as such factors may be further updated from time to time in Hilton’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in Hilton’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Non-GAAP Financial Measures

The Company refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”) in this press release, including: net income (loss), adjusted for special items; diluted EPS, adjusted for special items; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA ratio. See the schedules to this press release, including the “Definitions” section, for additional information and reconciliations of such non-GAAP financial measures.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 18 world-class brands comprising more than 6,200 properties with more than 983,000 rooms in 118 countries and territories. Dedicated to fulfilling its mission to be the world’s most hospitable company, Hilton welcomed more than 3 billion guests in its 100-year history, earned a top spot on the 2019 World’s Best Workplaces list and was named the 2019 Global Industry Leader on the Dow Jones Sustainability Indices. In 2020, Hilton CleanStay was introduced, bringing an industry-defining standard of cleanliness and disinfection to hotels worldwide. Through the award-winning guest loyalty program Hilton Honors, the 108 million members who book directly with Hilton can earn Points for hotel stays and experiences money can’t buy, plus enjoy instant benefits, including digital check-in with room selection, Digital Key and Connected Room. Visit newsroom.hilton.com for more information, and connect with Hilton on facebook.com/hiltonnewsroom, twitter.com/hiltonnewsroom, linkedin.com/company/hilton, instagram.com/hiltonnewsroom and youtube.com/hiltonnewsroom.

HILTON WORLDWIDE HOLDINGS INC.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

 

Condensed Consolidated Statements of Operations

Comparable and Currency Neutral System-Wide Hotel Operating Statistics

Property Summary

Capital Expenditures and Contract Acquisition Costs

Non-GAAP Financial Measures Reconciliations

Definitions

 

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions, except per share data)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

Franchise and licensing fees

$

132

 

 

$

444

 

 

$

471

 

 

$

826

 

Base and other management fees

 

8

 

 

 

89

 

 

 

68

 

 

 

169

 

Incentive management fees

 

(5

)

 

 

58

 

 

 

18

 

 

 

113

 

Owned and leased hotels

 

31

 

 

 

387

 

 

 

241

 

 

 

699

 

Other revenues

 

10

 

 

 

26

 

 

 

33

 

 

 

52

 

 

 

176

 

 

 

1,004

 

 

 

831

 

 

 

1,859

 

Other revenues from managed and franchised properties

 

388

 

 

 

1,480

 

 

 

1,653

 

 

 

2,829

 

Total revenues

 

564

 

 

 

2,484

 

 

 

2,484

 

 

 

4,688

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

Owned and leased hotels

 

95

 

 

 

334

 

 

 

334

 

 

 

632

 

Depreciation and amortization

 

88

 

 

 

86

 

 

 

179

 

 

 

170

 

General and administrative

 

63

 

 

 

113

 

 

 

123

 

 

 

220

 

Reorganization costs

 

38

 

 

 

 

 

 

38

 

 

 

 

Impairment losses

 

15

 

 

 

 

 

 

127

 

 

 

 

Other expenses

 

13

 

 

 

15

 

 

 

27

 

 

 

35

 

 

 

312

 

 

 

548

 

 

 

828

 

 

 

1,057

 

Other expenses from managed and franchised properties

 

554

 

 

 

1,458

 

 

 

1,890

 

 

 

2,841

 

Total expenses

 

866

 

 

 

2,006

 

 

 

2,718

 

 

 

3,898

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(302

)

 

 

478

 

 

 

(234

)

 

 

790

 

 

 

 

 

 

 

 

 

Interest expense

 

(106

)

 

 

(101

)

 

 

(200

)

 

 

(199

)

Loss on foreign currency transactions

 

(13

)

 

 

(3

)

 

 

(4

)

 

 

(3

)

Other non-operating loss, net

 

(23

)

 

 

(12

)

 

 

(23

)

 

 

(8

)

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(444

)

 

 

362

 

 

 

(461

)

 

 

580

 

 

 

 

 

 

 

 

 

Income tax benefit (expense)

 

12

 

 

 

(101

)

 

 

47

 

 

 

(160

)

 

 

 

 

 

 

 

 

Net income (loss)

 

(432

)

 

 

261

 

 

 

(414

)

 

 

420

 

Net loss (income) attributable to noncontrolling interests

 

2

 

 

 

(1

)

 

 

2

 

 

 

(2

)

Net income (loss) attributable to Hilton stockholders

$

(430

)

 

$

260

 

 

$

(412

)

 

$

418

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

277

 

 

 

290

 

 

 

277

 

 

 

291

 

Diluted

 

278

 

 

 

292

 

 

 

279

 

 

 

294

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

Basic

$

(1.55

)

 

$

0.90

 

 

$

(1.49

)

 

$

1.43

 

Diluted

$

(1.55

)

 

$

0.89

 

 

$

(1.48

)

 

$

1.42

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

$

 

 

$

0.15

 

 

$

0.15

 

 

$

0.30

 

 
 

HILTON WORLDWIDE HOLDINGS INC.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY REGION

(unaudited)

 

Three Months Ended June 30,

 

Occupancy

 

ADR

 

RevPAR

 

2020

 

vs. 2019

 

2020

 

vs. 2019

 

2020

 

vs. 2019

U.S.

24.4

%

(55.9

)%

pts.

$

101.17

(33.2

)%

$

24.68

(79.7

)%

Americas (excluding U.S.)

10.3

 

(60.7

)

 

 

76.72

(32.7

)

 

7.93

(90.2

)

Europe

7.1

 

(72.3

)

 

 

84.21

(39.9

)

 

5.98

(94.6

)

Middle East & Africa

15.4

 

(50.2

)

 

 

103.91

(28.7

)

 

16.01

(83.3

)

Asia Pacific

28.8

 

(40.7

)

 

 

74.09

(33.3

)

 

21.31

(72.4

)

System-wide

22.3

 

(56.1

)

 

 

97.18

(33.2

)

 

21.67

(81.0

)

 

 

Six Months Ended June 30,

 

Occupancy

 

ADR

 

RevPAR

 

2020

 

vs. 2019

 

2020

 

vs. 2019

 

2020

 

vs. 2019

U.S.

41.5

%

(34.5

)%

pts.

$

129.02

(13.2

)%

$

53.56

(52.6

)%

Americas (excluding U.S.)

32.4

 

(35.8

)

 

 

109.78

(5.9

)

 

35.58

(55.3

)

Europe

30.0

 

(43.1

)

 

 

115.43

(12.6

)

 

34.68

(64.1

)

Middle East & Africa

38.6

 

(29.8

)

 

 

128.99

(8.8

)

 

49.85

(48.5

)

Asia Pacific

33.4

 

(34.1

)

 

 

96.70

(15.5

)

 

32.31

(58.2

)

System-wide

39.3

 

(35.1

)

 

 

124.94

(12.6

)

 

49.06

(53.9

)

 

HILTON WORLDWIDE HOLDINGS INC.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY BRAND

(unaudited)

 

Three Months Ended June 30,

 

Occupancy

 

ADR

 

RevPAR

 

2020

 

vs. 2019

 

2020

vs. 2019

 

2020

vs. 2019

Waldorf Astoria Hotels & Resorts

6.6

%

(67.3

)%

pts.

$

280.87

(24.4

)%

$

18.41

(93.3

)%

Conrad Hotels & Resorts

19.0

 

(56.3

)

 

 

134.88

(48.7

)

 

25.69

(87.0

)

Canopy by Hilton

9.1

 

(67.4

)

 

 

129.14

(36.2

)

 

11.82

(92.4

)

Hilton Hotels & Resorts

13.0

 

(64.8

)

 

 

107.65

(37.4

)

 

14.04

(89.5

)

Curio Collection by Hilton

14.7

 

(56.0

)

 

 

111.51

(46.4

)

 

16.35

(88.9

)

DoubleTree by Hilton

17.3

 

(59.0

)

 

 

90.78

(30.8

)

 

15.71

(84.3

)

Tapestry Collection by Hilton

28.9

 

(47.2

)

 

 

98.85

(41.2

)

 

28.59

(77.7

)

Embassy Suites by Hilton

16.8

 

(65.2

)

 

 

113.09

(33.0

)

 

18.95

(86.3

)

Hilton Garden Inn

22.4

 

(56.4

)

 

 

90.46

(32.8

)

 

20.22

(80.9

)

Hampton by Hilton

27.2

 

(51.0

)

 

 

92.08

(25.6

)

 

25.07

(74.1

)

Tru by Hilton

29.8

 

(41.2

)

 

 

81.62

(23.9

)

 

24.31

(68.1

)

Homewood Suites by Hilton

40.6

 

(43.4

)

 

 

103.65

(27.8

)

 

42.06

(65.1

)

Home2 Suites by Hilton

40.0

 

(41.0

)

 

 

93.46

(22.1

)

 

37.43

(61.5

)

System-wide

22.3

 

(56.1

)

 

 

97.18

(33.2

)

 

21.67

(81.0

)

 

 

Six Months Ended June 30,

 

Occupancy

 

ADR

 

RevPAR

 

2020

 

vs. 2019

 

2020

vs. 2019

 

2020

vs. 2019

Waldorf Astoria Hotels & Resorts

29.8

%

(42.6

)%

pts.

$

407.98

6.8

%

$

121.51

(56.1

)%

Conrad Hotels & Resorts

32.4

 

(41.8

)

 

 

202.74

(19.9

)

 

65.69

(65.0

)

Canopy by Hilton

30.2

 

(39.0

)

 

 

175.53

(13.1

)

 

52.96

(62.1

)

Hilton Hotels & Resorts

33.6

 

(41.0

)

 

 

152.89

(9.8

)

 

51.32

(59.4

)

Curio Collection by Hilton

33.5

 

(33.6

)

 

 

185.70

(10.8

)

 

62.15

(55.5

)

DoubleTree by Hilton

35.3

 

(37.4

)

 

 

118.51

(8.7

)

 

41.79

(55.7

)

Tapestry Collection by Hilton

39.9

 

(28.4

)

 

 

117.52

(23.9

)

 

46.95

(55.5

)

Embassy Suites by Hilton

38.4

 

(40.1

)

 

 

146.82

(11.2

)

 

56.40

(56.6

)

Hilton Garden Inn

39.6

 

(35.2

)

 

 

113.15

(13.5

)

 

44.78

(54.2

)

Hampton by Hilton

41.5

 

(31.7

)

 

 

106.34

(11.8

)

 

44.17

(50.0

)

Tru by Hilton

41.6

 

(22.7

)

 

 

90.36

(12.7

)

 

37.60

(43.5

)

Homewood Suites by Hilton

53.2

 

(26.9

)

 

 

121.04

(13.6

)

 

64.37

(42.6

)

Home2 Suites by Hilton

51.5

 

(24.5

)

 

 

104.10

(11.2

)

 

53.66

(39.9

)

System-wide

39.3

 

(35.1

)

 

 

124.94

(12.6

)

 

49.06

(53.9

)

 
 

HILTON WORLDWIDE HOLDINGS INC.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY SEGMENT

(unaudited)

 

 

Three Months Ended June 30,

 

Occupancy

 

ADR

 

RevPAR

 

2020

 

vs. 2019

 

2020

 

vs. 2019

 

2020

 

vs. 2019

Management and franchise

22.6

%

(55.8

)%

pts.

$

97.08

(32.8

)%

$

21.98

(80.6

)%

Ownership(1)

5.3

 

(74.6

)

 

 

117.81

(39.9

)

 

6.25

(96.0

)

System-wide

22.3

 

(56.1

)

 

 

97.18

(33.2

)

 

21.67

(81.0

)

 

 

Six Months Ended June 30,

 

Occupancy

 

ADR

 

RevPAR

 

2020

 

vs. 2019

 

2020

 

vs. 2019

 

2020

 

vs. 2019

Management and franchise

39.5

%

(34.9

)%

pts.

$

124.50

(12.4

)%

$

49.16

(53.5

)%

Ownership(1)

28.1

 

(46.4

)

 

 

155.51

(15.4

)

 

43.69

(68.1

)

System-wide

39.3

 

(35.1

)

 

 

124.94

(12.6

)

 

49.06

(53.9

)

 
____________
(1)

Includes owned and leased hotels, as well as hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.

 
 

HILTON WORLDWIDE HOLDINGS INC.

PROPERTY SUMMARY

As of June 30, 2020

 

 

Owned / Leased(1)

Managed

Franchised

Total

 

Properties

Rooms

Properties

Rooms

Properties

Rooms

Properties

Rooms

Waldorf Astoria Hotels & Resorts

 

 

 

 

 

 

 

 

U.S.

14

5,963

14

5,963

Americas (excluding U.S.)

2

257

2

257

Europe

2

463

4

898

6

1,361

Middle East & Africa

5

1,224

5

1,224

Asia Pacific

5

1,014

5

1,014

LXR Hotels & Resorts

 

 

 

 

 

 

 

 

Americas (excluding U.S.)

1

76

1

76

Europe

1

307

1

307

Middle East & Africa

1

234

1

234

Conrad Hotels & Resorts

 

 

 

 

 

 

 

 

U.S.

6

2,211

1

225

7

2,436

Americas (excluding U.S.)

2

402

2

402

Europe

4

1,155

4

1,155

Middle East & Africa

1

614

2

993

3

1,607

Asia Pacific

1

164

21

6,138

1

659

23

6,961

Canopy by Hilton

 

 

 

 

 

 

 

 

U.S.

13

2,114

13

2,114

Americas (excluding U.S.)

1

174

1

174

Europe

2

263

2

263

Middle East & Africa

1

200

1

200

Asia Pacific

2

329

2

329

Hilton Hotels & Resorts

 

 

 

 

 

 

 

 

U.S.

65

47,454

176

54,085

241

101,539

Americas (excluding U.S.)

1

405

26

9,455

21

7,096

48

16,956

Europe

50

13,919

43

14,439

40

10,875

133

39,233

Middle East & Africa

5

1,998

42

13,482

2

1,415

49

16,895

Asia Pacific

5

2,999

98

35,454

6

2,203

109

40,656

Curio Collection by Hilton

 

 

 

 

 

 

 

 

U.S.

6

2,485

44

8,804

50

11,289

Americas (excluding U.S.)

2

99

8

825

10

924

Europe

5

520

16

1,766

21

2,286

Middle East & Africa

3

445

1

356

4

801

Asia Pacific

4

773

2

248

6

1,021

DoubleTree by Hilton

 

 

 

 

 

 

 

 

U.S.

32

10,864

331

76,663

363

87,527

Americas (excluding U.S.)

2

306

34

6,680

36

6,986

Europe

12

3,156

99

16,917

111

20,073

Middle East & Africa

12

3,164

6

719

18

3,883

Asia Pacific

62

17,015

3

1,072

65

18,087

Tapestry Collection by Hilton

 

 

 

 

 

 

 

 

U.S.

34

4,490

34

4,490

Americas (excluding U.S.)

2

190

2

190

Embassy Suites by Hilton

 

 

 

 

 

 

 

 

U.S.

41

10,924

210

47,152

251

58,076

Americas (excluding U.S.)

3

667

5

1,336

8

2,003

Hilton Garden Inn

 

 

 

 

 

 

 

 

U.S.

4

425

688

95,255

692

95,680

Americas (excluding U.S.)

11

1,571

44

6,829

55

8,400

Europe

20

3,764

53

8,788

73

12,552

Middle East & Africa

15

3,272

2

271

17

3,543

Asia Pacific

30

6,423

30

6,423

Hampton by Hilton

 

 

 

 

 

 

 

 

U.S.

29

3,547

2,221

218,745

2,250

222,292

Americas (excluding U.S.)

13

1,685

103

12,450

116

14,135

Europe

17

2,836

70

10,763

87

13,599

Middle East & Africa

3

723

3

723

Asia Pacific

126

21,202

126

21,202

Tru by Hilton

 

 

 

 

 

 

 

 

U.S.

133

12,806

133

12,806

Americas (excluding U.S.)

1

90

1

90

Homewood Suites by Hilton

 

 

 

 

 

 

 

 

U.S.

10

1,052

472

53,858

482

54,910

Americas (excluding U.S.)

3

406

22

2,457

25

2,863

Home2 Suites by Hilton

 

 

 

 

 

 

 

 

U.S.

3

313

401

42,086

404

42,399

Americas (excluding U.S.)

7

753

7

753

Other

4

1,995

3

1,151

7

3,146

Hotels

65

20,562

690

219,979

5,405

733,967

6,160

974,508

Hilton Grand Vacations

55

8,957

55

8,957

Total

65

20,562

690

219,979

5,460

742,924

6,215

983,465

____________
(1)

Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.

 
 

HILTON WORLDWIDE HOLDINGS INC.

CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS

(unaudited, dollars in millions)

 

 

Three Months Ended

 

 

 

 

 

June 30,

 

Increase / (Decrease)

 

2020

 

2019

 

$

 

%

Capital expenditures for property and equipment(1)

$

18

 

$

23

 

(5

)

 

(21.7

)

Capitalized software costs(2)

 

16

 

 

25

 

(9

)

 

(36.0

)

Total capital expenditures

 

34

 

 

48

 

(14

)

 

(29.2

)

Contract acquisition costs

 

12

 

 

28

 

(16

)

 

(57.1

)

Total capital expenditures and contract acquisition costs

$

46

 

$

76

 

(30

)

 

(39.5

)

 

 

Six Months Ended

 

 

 

 

 

June 30,

 

Increase / (Decrease)

 

2020

 

2019

 

$

 

%

Capital expenditures for property and equipment(1)

$

30

 

$

46

 

(16

)

 

(34.8

)

Capitalized software costs(2)

 

33

 

 

44

 

(11

)

 

(25.0

)

Total capital expenditures

 

63

 

 

90

 

(27

)

 

(30.0

)

Contract acquisition costs

 

23

 

 

43

 

(20

)

 

(46.5

)

Total capital expenditures and contract acquisition costs

$

86

 

$

133

 

(47

)

 

(35.3

)

____________

(1)

 

Includes expenditures for hotels, corporate and other property and equipment, of which $4 million and $1 million were indirectly reimbursed by hotel owners for the three months ended June 30, 2020 and 2019, respectively, and $7 million and $6 million were indirectly reimbursed by hotel owners for the six months ended June 30, 2020 and 2019, respectively. Excludes expenditures for furniture, fixtures and equipment (“FF&E”) replacement reserves of $7 million and $15 million for the three months ended June 30, 2020 and 2019, respectively, and $21 million and $29 million for the six months ended June 30, 2020 and 2019, respectively.

(2)

 

Includes $6 million and $21 million of expenditures that were indirectly reimbursed by hotel owners for the three months ended June 30, 2020 and 2019, respectively, and $20 million and $36 million for the six months ended June 30, 2020 and 2019, respectively.

 
 

HILTON WORLDWIDE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

NET INCOME (LOSS) AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS

(unaudited, in millions, except per share data)

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss) attributable to Hilton stockholders, as reported

$

(430

)

 

$

260

 

 

$

(412

)

 

$

418

 

Diluted EPS, as reported

$

(1.55

)

 

$

0.89

 

 

$

(1.48

)

 

$

1.42

 

Special items:

 

 

 

 

 

 

 

Net other expenses (revenues) from managed and franchised properties

$

166

 

 

$

(22

)

 

$

237

 

 

$

12

 

Purchase accounting amortization(1)

 

47

 

 

 

51

 

 

 

96

 

 

 

102

 

FF&E replacement reserves

 

7

 

 

 

15

 

 

 

21

 

 

 

29

 

Reorganization costs

 

38

 

 

 

 

 

 

38

 

 

 

 

Impairment losses

 

15

 

 

 

 

 

 

127

 

 

 

 

Financing transactions(2)

 

 

 

 

8

 

 

 

 

 

 

8

 

Other adjustments(3)

 

22

 

 

 

9

 

 

 

25

 

 

 

10

 

Total special items before tax

 

295

 

 

 

61

 

 

 

544

 

 

 

161

 

Income tax expense on special items

 

(35

)

 

 

(11

)

 

 

(94

)

 

 

(35

)

Total special items after tax

$

260

 

 

$

50

 

 

$

450

 

 

$

126

 

 

 

 

 

 

 

 

 

Net income (loss), adjusted for special items

$

(170

)

 

$

310

 

 

$

38

 

 

$

544

 

Diluted EPS, adjusted for special items

$

(0.61

)

 

$

1.06

 

 

$

0.13

 

 

$

1.85

 

Contacts

Investor Contact
Jill Slattery

+1 703 883 6043

Media Contact
Nigel Glennie

+1 703 883 5262

Read full story here

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