Hilton Worldwide Holdings Inc.

Second-quarter system-wide RevPAR increased 3.9% year over year on a comparable, currency-neutral basis. U.S. RevPAR rose 5.4%; the Americas outside the U.S. grew 4.6%; Europe grew 4.3%; APAC excluding China rose 6.3%; and China RevPAR fell 2.2%. Adjusted EBITDA was $1.054 billion, up 4.6% year over year, and adjusted EPS was $2.29. Management said management and franchise fees grew 6.4% year over year, net unit growth was 6.1%, and openings were more than 200 hotels totaling over 24,000 rooms. For 2026, Hilton raised full-year system-wide RevPAR growth expectations to 3% to 3.5%, expects third-quarter RevPAR growth of approximately 4%, adjusted EBITDA of $4.04 billion to $4.08 billion, and adjusted EPS of $8.89 to $9.01. It also expects U.S. RevPAR to grow in the mid-single digits, the Americas outside the U.S. in the low- to mid-single digits, Europe in the mid-single digits, Middle East and Africa to be down in the high-single to low-double digits, APAC to be in the low-single digits, and China RevPAR down low-single digits.

Christopher Nassetta struck an upbeat tone, saying demand improved across chain scales and segments and that the business is benefiting from a stronger U.S. backdrop, especially in business transient and group. He highlighted the company’s disciplined development strategy, record pipeline, and new brand launches, including Undergraduate by Hilton, as evidence that Hilton is using its scale to keep growing. He also stressed that Hilton is actively working with owners to improve profitability through fee reductions, more flexible renovations, and technology-enabled efficiency efforts.

Kevin Jacobs said the quarter outperformed on both operations and timing: adjusted EBITDA of $1.054 billion was above the high end of guidance, helped by better-than-expected RevPAR and $17 million of non-RevPAR timing items. He noted that second-quarter diluted adjusted EPS was $2.29 and that management and franchise fees grew 6.4% year over year. On capital return, Hilton paid a $0.15 quarterly dividend totaling $34 million, authorized another $0.15 quarterly dividend for Q3, and still expects about $3.5 billion to be returned to shareholders in 2026 through buybacks and dividends. He also quantified headwinds from the owned-hotel portfolio and the Middle East conflict, saying those dynamics reduced full-year EBITDA by roughly $40 million to $50 million combined.

Analysts focused on three main themes: why Hilton is now taking stronger steps to help owners, what supports the confidence in continued demand strength into 2027, and why Q2 signings and net unit growth should accelerate in the second half. Management said owner profitability is being addressed through lower loyalty fees, Project RISE, and a broader internal review of hotel-level P&Ls, with roughly 75 to 100 basis points of margin benefit for owners and about half of the U.S. system currently receiving the full benefit. On demand, Nassetta said the midweek business transient recovery, SMB strength, broadening middle-market demand, and supportive macro trends such as infrastructure and AI-related investment support confidence beyond 2026. On development, Jacobs said the back half is typically heavier and that Hilton has visibility because most openings are already under construction or in conversion.