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2019 Vault Rankings

About Hilton Worldwide Holdings Inc.

If you need a bed for the night, Hilton has a few hundred thousand of them. Hilton Worldwide is one of the world's largest hoteliers with a lodging empire that includes about 5,700 hotels and resorts in more than 110 countries, operating under such names as Doubletree, Embassy Suites, and Hampton Inn, as well as its flagship Hilton brand. Many of its hotels serve the mid-market segment, though its Hilton and Conrad hotels offer full-service, upscale lodging. In addition, its Homewood Suites and Home2 Suites chains offers extended-stay services. The company franchises nearly all its hotels, with just 70 being directly operated. Hilton became a public company again in 2013.

Operations

Hilton's management and franchise segment, which accounts for nearly 85% of revenue, includes about 690 managed hotels, more than 4,800 franchised hotels, and the licensing of Hilton's brands. The segment derives revenue from a host of franchising, management, and licensing fees.

The ownership segment (more than 15% of sales), consists of more than 70 hotels and derives revenue from providing hotel room rentals, food and beverage, and other services at the company's owned and leased hotels.

Hilton controls an extensive portfolio of brands. The company's largest chains, Hampton Inn and Hampton Inn & Suites, include more than 2,400 locations and target mid-market travelers with moderately priced rooms and limited amenities. At the other end of the scale, the company's Conrad chain offers luxury services and distinctive locations, while its Waldorf-Astoria Collection is a prestigious collection of hotels inspired by the New York landmark.

Hilton's "focused service" (i.e. cheaper) hotel brands include Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Motto by Hilton, Hilton Grand Vacations, and Home2 Suites by Hilton. The company's Hilton Grand Vacations subsidiary operates more than 50 time-share vacation resorts.

Geographic Reach

Headquartered in Mclean, Virginia, the company has regional corporate offices in Watford, UK; Dubai, UAE; Singapore; Tokyo, Japan; and Shanghai, China. Additional Hilton support offices include its Hilton Honors and other commercial services office in Addison, Texas; centralized operations centers in Memphis, Tennessee and Glasgow, UK; and our Hilton Reservations and Customer Care office in Carrollton, Texas.

Hilton's holdings comprise more than 900,000 rooms in more than 110 countries. The company divides its business into three geographic regions, Americas; Europe, Middle East, and Africa ("EMEA"); and Asia Pacific. The Americas region includes North America, South America, and Central America, including all Caribbean nations.

Properties in the US represent almost 75% of the company's system-wide hotel rooms and generate a similar portion of revenue. The UK is its second-largest market at more than 5%; all other countries account for the remainder. 

Sales and Marketing

Hilton relies on traditional advertising and promotions along with a variety of direct marketing techniques such as email, social media marketing, and postal mailings to drum up business. When the company's hotel rooms are booked through internet travel intermediaries, Hilton pays commissions and transaction fees for sales of rooms through such services.

The company also has a robust customer loyalty program, Hilton Honors, it uses to try to generate return business. As part of the company's hotel management business, hotel owners pay for participation in the Hilton Honors guest loyalty program. The owners also pay Hilton usage fees, which cover the costs of advertising and marketing programs, internet, technology and reservation systems, and quality assurance program expenses.

Financial Performance

Aside from a blip in 2016 when it sold off operations and hotels, Hilton has enjoyed strong and steady revenue in recent years.

In 2018 the company's sales grew 10% to $8.9 billion thanks to growth in system-wide revenue per available room (RevPAR), particularly in Turkey, which is recovering from political turmoil, and China, where its new hotels are entering a new phase of maturity.

Net income fell 29% to $769 million due to an increase in income taxes. A windfall arising from the 2017 US Tax Cuts and Jobs Act inflated Hilton's net income in prior year; in 2018 it returned to more normal levels. 

Hilton's cash position weakened in 2018, ending the year $186 million lower at $484 million. The company generated $1.3 billion from its operations, while investing activities used $131 million and financing activities used $1.3 billion. The company's main cash uses were debt repayments, stock repurchases, dividend payouts, and capital expenditures. 

Strategy

Hilton's strategic objectives include the continued expansion of its global footprint and fee-based business. However, staffing shortages in various parts of the world could slow Hilton's ability to grow and expand its businesses. Payroll costs are always a major component of the company's operating expenses at its hotels and franchised hotels.

At the end of 2018, Hilton had a total of 2,400 hotels in its development pipeline, representing more than 364,000 rooms in upwards of 100 countries (35 being new territories). Hilton's continued growth is funded by cash generated by its operations and the occasional spin off, such as the sale of its timeshare and real estate investment trust business in 2017.

Hilton Worldwide Holdings Inc.

7930 Jones Branch Dr STE 1100
Mc Lean, VA 22102-3313
Phone: 1 (703) 883-1000

Stats

Employer Type: Publicly Owned
Stock Symbol: HLT
Stock Exchange: , NYSE
Chairman: Jonathan D. Gray
Director, Digital Delivery: Ryan Judge
President, CEO, and Director: Christopher J. Nassetta
Employees (This Location): 363
Employees (All Locations): 169,000

Major Office Locations

Mc Lean, VA

Other Locations

Istanbul (Europe), Turkey
München, Germany