Hilton guides lower RevPAR, revenue growth

McLEAN, Virginia – Hilton reported first quarter earnings early on Tuesday, trimming full-year room revenue growth. RevPAR was lowered to flat to +2% versus +2% to +3% previously, while Adjusted EBITDA was cut 1.1%.

Hilton said full-year net income will be in the range of $1.71 billion and $1.75 billion, compared to $1.83 billion to $1.86 billion previously.

Positively, net unit growth for the year is projected to be between 6% and 7%.

For the second quarter, Hilton is forecasting system-wide comparable RevPAR to be roughly flat compared to the second quarter of 2024. Adjusted EBITDA is forecasted to be $940-$960 million.

“We are pleased with our first quarter results, with strong bottom-line performance, even with somewhat weaker macroeconomic conditions,” said Hilton President and CEO Chris Nassetta. “Additionally, we expect our industry leading brands and powerful commercial engines to continue to drive strong net unit growth. Overall, we remain optimistic about our growth opportunities and are well positioned to continue creating value for our stakeholders in 2025 and beyond.”

Overall, Hilton did beat Street expectations for Q125 with 2.5% RevPAR growth due to increases in both occupancy and ADR as well as higher than projected fee revenues and lower G&A expenses. Management and franchise fee revenues increased 5.1% compared to the same period in 2024.

Other key first-quarter highlights: diluted EPS was $1.23 and diluted EPS, adjusted for special items, was $1.72; net income was $300 million; and adjusted EBITDA was $795 million.

Hilton opened 186 hotels, totaling 20,100 rooms, resulting in 14,000 net room additions. Hilton expanded its luxury and lifestyle portfolios, which accounted for approximately 30% of all hotel openings in the first quarter. Marquee openings in April included Waldorf Astoria hotels in Osaka, Japan, and Punta Cacique, Costa Rica.

Hilton added 32,600 rooms to the development pipeline during the first quarter, and, as of March 31, 2025, its development pipeline totaled 3,600 hotels representing 503,400 rooms (+7% YOY) throughout 123 countries and territories, including 27 countries and territories where it had no existing hotels.

Additionally, of the rooms in the development pipeline, nearly half were under construction, and more than half were located outside of the U.S.