For the three months and year ended December 31, 2022, system-wide comparable RevPAR increased 24.8 percent and 42.5 percent, respectively, compared to the same periods in 2021, due to increases in both occupancy and ADR.
Hilton Worldwide Holdings Inc. (NYSE: HLT) today reported its fourth quarter and full year 2022 results. Highlights include:
- Diluted EPS was $1.21 for the fourth quarter and $4.53 for the full year, exceeding the high end of guidance
- Diluted EPS, adjusted for special items, was $1.59 for the fourth quarter and $4.89 for the full year, exceeding the high end of guidance
- Net income was $333 million for the fourth quarter and $1,257 million for the full year, exceeding the high end of guidance
- Adjusted EBITDA was $740 million for the fourth quarter and $2,599 million for the full year, exceeding the high end of guidance
- System-wide comparable RevPAR increased 24.8 percent and 42.5 percent, on a currency neutral basis, for the fourth quarter and full year, respectively, compared to the same periods in 2021
- System-wide comparable RevPAR increased 7.5 percent and decreased 1.3 percent, on a currency neutral basis, for the fourth quarter and full year, respectively, compared to the same periods in 2019
- Approved 24,400 new rooms for development during the fourth quarter, bringing Hilton's development pipeline to 416,400 rooms as of December 31, 2022
- Added 17,700 rooms to Hilton's system in the fourth quarter, resulting in 48,300 net additional rooms in Hilton's system for the full year, contributing to net unit growth of 4.7 percent, with fourth quarter hotel openings modestly lagging prior expectations due to the ongoing COVID-19 environment in China
- Full year 2023 net unit growth is expected to be between 5.0 percent and 5.5 percent
- Repurchased 3.8 million shares of Hilton common stock during the fourth quarter, bringing total capital return, including dividends, to $542 million for the quarter and more than $1.7 billion for the full year
- Launched a new premium economy brand, Spark by Hilton, in January 2023
- Full year 2023 system-wide RevPAR is expected to increase between 4 percent and 8 percent on a comparable and currency neutral basis compared to 2022; full year net income is projected to be between $1,382 million and $1,454 million; full year Adjusted EBITDA is projected to be between $2,800 million and $2,900 million
- Full year 2023 capital return is projected to be between $1.7 billion and $2.1 billion
Overview
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "Our fourth quarter and full year results surpassed our expectations, with fourth quarter system-wide RevPAR meaningfully exceeding the same period in 2019 driven by growth across all segments. This marked the second consecutive quarter that RevPAR exceeded pre-pandemic levels. Positive momentum has continued into the new year with exciting growth opportunities ahead, including the continued expansion of our brand portfolio with the recent launch of our newest brand, Spark by Hilton."
For the three months and year ended December 31, 2022, system-wide comparable RevPAR increased 24.8 percent and 42.5 percent, respectively, compared to the same periods in 2021, due to increases in both occupancy and ADR. For the three months and year ended December 31, 2022 compared to the same periods in 2021, fee revenues increased 30 percent and 45 percent, respectively. For comparison to pre-pandemic results, system-wide comparable RevPAR for the three months and year ended December 31, 2022 increased 7.5 percent and decreased 1.3 percent, respectively, compared to the same periods in 2019, and fee revenues for both the three months and year ended December 31, 2022 exceeded the same periods in 2019.
For the three months ended December 31, 2022, diluted EPS was $1.21 and diluted EPS, adjusted for special items, was $1.59 compared to $0.52 and $0.72, respectively, for the three months ended December 31, 2021. Net income and Adjusted EBITDA were $333 million and $740 million, respectively, for the three months ended December 31, 2022, compared to $148 million and $512 million, respectively, for the three months ended December 31, 2021.
For the year ended December 31, 2022, diluted EPS was $4.53 and diluted EPS, adjusted for special items, was $4.89 compared to $1.46 and $2.08, respectively, for the year ended December 31, 2021. Net income and Adjusted EBITDA were $1,257 million and $2,599 million, respectively, for the year ended December 31, 2022, compared to $407 million and $1,629 million, respectively, for the year ended December 31, 2021.
Development
In the fourth quarter of 2022, Hilton opened 108 new hotels contributing 17,700 additional rooms to Hilton's system and achieved net unit growth of 15,100 rooms. During the full year 2022, Hilton opened 355 new hotels totaling 58,200 rooms and achieved net unit growth of 48,300 rooms. Hilton continued to achieve growth milestones during the fourth quarter, opening the 60,000th room under the Home2 Suites by Hilton brand and the 150,000th room under the DoubleTree by Hilton brand. Further, during the fourth quarter, Hilton opened the Waldorf Astoria Cancun, marking the Company's 200th hotel in the Caribbean and Latin America region.
As of December 31, 2022, Hilton's development pipeline totaled more than 2,820 hotels representing 416,400 rooms throughout 118 countries and territories, including 30 countries and territories where Hilton does not currently have any existing hotels. Additionally, of the rooms in the development pipeline, 205,400 of the rooms were under construction and 243,500 of the rooms were located outside the U.S.
In January 2023, Hilton launched Spark by Hilton, a premium economy brand that is dedicated to delivering thoughtful simplicity, reliable service, unexpected touches and consistent quality. Spark by Hilton leverages a conversion model approach to growth and had more than 200 hotels in various stages of negotiation as of February 3, 2023.
Balance Sheet and Liquidity
As of December 31, 2022, Hilton had $8.8 billion of long-term debt outstanding, excluding the deduction for deferred financing costs and discount, with a weighted average interest rate of 4.45 percent. Excluding all finance lease liabilities and other debt of Hilton's consolidated variable interest entities, Hilton had $8.6 billion of long-term debt outstanding with a weighted average interest rate of 4.44 percent and no scheduled maturities until May 2025. No debt amounts were outstanding under Hilton's $1.75 billion senior secured revolving credit facility (the "Revolving Credit Facility") as of December 31, 2022, which had an available borrowing capacity of $1.69 billion after considering $60 million of outstanding letters of credit. Total cash and cash equivalents were $1,286 million as of December 31, 2022, including $77 million of restricted cash and cash equivalents.
In January 2023, Hilton amended its credit agreement governing its Revolving Credit Facility to increase the borrowing capacity to $2.0 billion, $250 million of which is available in the form of letters of credit, and, based on the terms of the agreement, Hilton expects the extended maturity date to be January 2028. As of February 3, 2023, after considering the $60 million of letters of credit outstanding and no borrowings outstanding, Hilton had an available borrowing capacity on the Revolving Credit Facility of $1,940 million.
During the fourth quarter of 2022, Hilton repurchased 3.8 million shares of its common stock for a cost of $501 million and an average price per share of $131.36. During the year ended December 31, 2022, Hilton repurchased 12.3 million shares of its common stock for a cost of $1,608 million and an average price per share of $130.75. In November 2022, Hilton's board of directors authorized an additional $2.5 billion for share repurchases under its share repurchase program. Through February 3, 2023, since the inception of Hilton's stock repurchase program in March 2017, Hilton has repurchased approximately 53.8 million shares of its common stock for approximately $5.1 billion at an average price per share of $94.19. The amount remaining under Hilton's stock repurchase program is approximately $2,933 million.
In December 2022, Hilton paid a quarterly cash dividend of $0.15 per share of common stock, for a total of $41 million, bringing cash dividends for the full year to $123 million. In February 2023, Hilton's board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on or before March 31, 2023 to holders of record of its common stock as of the close of business on February 28, 2023.
Outlook
Share-based metrics in Hilton's outlook include actual share repurchases to date, but do not include the effect of potential share repurchases hereafter.
Full Year 2023
- System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 4 percent and 8 percent compared to 2022.
- Diluted EPS is projected to be between $5.10 and $5.36.
- Diluted EPS, adjusted for special items, is projected to be between $5.42 and $5.68.
- Net income is projected to be between $1,382 million and $1,454 million.
- Adjusted EBITDA is projected to be between $2,800 million and $2,900 million.
- Contract acquisition costs and capital expenditures, excluding amounts indirectly reimbursed by third parties, are expected to be approximately $300 million.
- Capital return is projected to be between $1.7 billion and $2.1 billion.
- General and administrative expenses are projected to be between $390 million and $410 million.
- Net unit growth is expected to be between 5.0 percent and 5.5 percent.
First Quarter 2023
- System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 23 percent and 27 percent compared to the first quarter of 2022.
- Diluted EPS is projected to be between $1.00 and $1.06.
- Diluted EPS, adjusted for special items, is projected to be between $1.08 and $1.14.
- Net income is projected to be between $271 million and $287 million.
- Adjusted EBITDA is projected to be between $590 million and $610 million.
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 19 world-class brands comprising more than 7,100 properties and more than 1.1 million rooms, in 123 countries and territories.
| HILTON WORLDWIDE HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) | |||||||||||||||
|
| Three Months Ended |
| Year Ended | ||||||||||||
|
| December 31, |
| December 31, | ||||||||||||
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
|
| Revenues |
|
|
|
|
|
|
| ||||||||
| Franchise and licensing fees | $ | 537 |
|
| $ | 431 |
|
| $ | 2,068 |
|
| $ | 1,493 |
|
| Base and other management fees |
| 88 |
|
|
| 60 |
|
|
| 294 |
|
|
| 176 |
|
| Incentive management fees |
| 64 |
|
|
| 38 |
|
|
| 196 |
|
|
| 98 |
|
| Owned and leased hotels |
| 349 |
|
|
| 222 |
|
|
| 1,076 |
|
|
| 598 |
|
| Other revenues |
| 31 |
|
|
| 23 |
|
|
| 102 |
|
|
| 79 |
|
|
|
| 1,069 |
|
|
| 774 |
|
|
| 3,736 |
|
|
| 2,444 |
|
| Other revenues from managed and franchised properties |
| 1,375 |
|
|
| 1,062 |
|
|
| 5,037 |
|
|
| 3,344 |
|
| Total revenues |
| 2,444 |
|
|
| 1,836 |
|
|
| 8,773 |
|
|
| 5,788 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Expenses |
|
|
|
|
|
|
| ||||||||
| Owned and leased hotels |
| 294 |
|
|
| 227 |
|
|
| 999 |
|
|
| 679 |
|
| Depreciation and amortization |
| 39 |
|
|
| 45 |
|
|
| 162 |
|
|
| 188 |
|
| General and administrative |
| 95 |
|
|
| 103 |
|
|
| 382 |
|
|
| 405 |
|
| Other expenses |
| 25 |
|
|
| 14 |
|
|
| 60 |
|
|
| 45 |
|
|
|
| 453 |
|
|
| 389 |
|
|
| 1,603 |
|
|
| 1,317 |
|
| Other expenses from managed and franchised properties |
| 1,487 |
|
|
| 1,115 |
|
|
| 5,076 |
|
|
| 3,454 |
|
| Total expenses |
| 1,940 |
|
|
| 1,504 |
|
|
| 6,679 |
|
|
| 4,771 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Gain (loss) on sales of assets, net |
| — |
|
|
| 1 |
|
|
| — |
|
|
| (7 | ) |
|
|
|
|
|
|
|
|
| ||||||||
| Operating income |
| 504 |
|
|
| 333 |
|
|
| 2,094 |
|
|
| 1,010 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Interest expense |
| (120 | ) |
|
| (95 | ) |
|
| (415 | ) |
|
| (397 | ) |
| Gain (loss) on foreign currency transactions |
| 1 |
|
|
| (8 | ) |
|
| 5 |
|
|
| (7 | ) |
| Loss on debt extinguishment |
| — |
|
|
| — |
|
|
| — |
|
|
| (69 | ) |
| Other non-operating income, net |
| 18 |
|
|
| 7 |
|
|
| 50 |
|
|
| 23 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Income before income taxes |
| 403 |
|
|
| 237 |
|
|
| 1,734 |
|
|
| 560 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Income tax expense |
| (70 | ) |
|
| (89 | ) |
|
| (477 | ) |
|
| (153 | ) |
|
|
|
|
|
|
|
|
| ||||||||
| Net income |
| 333 |
|
|
| 148 |
|
|
| 1,257 |
|
|
| 407 |
|
| Net loss (income) attributable to noncontrolling interests |
| (5 | ) |
|
| (1 | ) |
|
| (2 | ) |
|
| 3 |
|
| Net income attributable to Hilton stockholders | $ | 328 |
|
| $ | 147 |
|
| $ | 1,255 |
|
| $ | 410 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Weighted average shares outstanding: |
|
|
|
|
|
|
| ||||||||
| Basic |
| 270 |
|
|
| 279 |
|
|
| 275 |
|
|
| 279 |
|
| Diluted |
| 272 |
|
|
| 282 |
|
|
| 277 |
|
|
| 281 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Earnings per share: |
|
|
|
|
|
|
| ||||||||
| Basic | $ | 1.22 |
|
| $ | 0.53 |
|
| $ | 4.56 |
|
| $ | 1.47 |
|
| Diluted | $ | 1.21 |
|
| $ | 0.52 |
|
| $ | 4.53 |
|
| $ | 1.46 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Cash dividends declared per share | $ | 0.15 |
|
| $ | — |
|
| $ | 0.45 |
|
| $ | — |
|
| HILTON WORLDWIDE HOLDINGS INC. COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS BY REGION, BRAND AND SEGMENT (unaudited) | ||||||||||||||||||
|
| Three Months Ended December 31, | |||||||||||||||||
|
| Occupancy |
| ADR |
| RevPAR | |||||||||||||
|
| 2022 |
| vs. 2021 |
| 2022 |
| vs. 2021 |
| 2022 |
| vs. 2021 | |||||||
| Region |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| U.S. | 68.1 | % |
| 4.4 | % | pts. |
| $ | 157.20 |
| 11.9 | % |
| $ | 106.99 |
| 19.6 | % |
| Americas (excluding U.S.) | 66.1 |
|
| 13.1 |
|
|
|
| 139.75 |
| 22.6 |
|
|
| 92.33 |
| 52.8 |
|
| Europe | 70.3 |
|
| 14.2 |
|
|
|
| 149.53 |
| 32.8 |
|
|
| 105.15 |
| 66.5 |
|
| Middle East & Africa | 74.2 |
|
| 7.1 |
|
|
|
| 174.24 |
| 13.9 |
|
|
| 129.27 |
| 25.9 |
|
| Asia Pacific | 55.8 |
|
| 2.5 |
|
|
|
| 109.21 |
| 23.0 |
|
|
| 60.97 |
| 28.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Brand |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Waldorf Astoria Hotels & Resorts | 60.6 | % |
| 7.0 | % | pts. |
| $ | 495.99 |
| (0.7 | )% |
| $ | 300.74 |
| 12.2 | % |
| Conrad Hotels & Resorts | 64.0 |
|
| 8.2 |
|
|
|
| 300.96 |
| 38.5 |
|
|
| 192.52 |
| 58.9 |
|
| Canopy by Hilton | 66.2 |
|
| 6.5 |
|
|
|
| 199.22 |
| 15.8 |
|
|
| 131.86 |
| 28.5 |
|
| Hilton Hotels & Resorts | 64.5 |
|
| 11.3 |
|
|
|
| 184.30 |
| 20.3 |
|
|
| 118.79 |
| 45.9 |
|
| Curio Collection by Hilton | 65.3 |
|
| 7.7 |
|
|
|
| 227.96 |
| 10.1 |
|
|
| 148.92 |
| 24.9 |
|
| DoubleTree by Hilton | 62.9 |
|
| 6.9 |
|
|
|
| 136.88 |
| 13.4 |
|
|
| 86.13 |
| 27.3 |
|
| Tapestry Collection by Hilton | 63.9 |
|
| 5.1 |
|
|
|
| 170.73 |
| 13.9 |
|
|
| 109.11 |
| 23.8 |
|
| Embassy Suites by Hilton | 68.2 |
|
| 6.7 |
|
|
|
| 172.55 |
| 11.4 |
|
|
| 117.66 |
| 23.6 |
|
| Hilton Garden Inn | 67.2 |
|
| 5.6 |
|
|
|
| 138.43 |
| 13.4 |
|
|
| 93.01 |
| 23.6 |
|
| Hampton by Hilton | 67.4 |
|
| 2.5 |
|
|
|
| 126.88 |
| 10.1 |
|
|
| 85.56 |
| 14.3 |
|
| Tru by Hilton | 67.0 |
|
| 3.1 |
|
|
|
| 120.65 |
| 8.6 |
|
|
| 80.89 |
| 13.8 |
|
| Homewood Suites by Hilton | 75.8 |
|
| 1.5 |
|
|
|
| 148.70 |
| 11.9 |
|
|
| 112.75 |
| 14.1 |
|
| Home2 Suites by Hilton | 75.0 |
|
| 0.5 |
|
|
|
| 132.80 |
| 10.7 |
|
|
| 99.57 |
| 11.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Segment |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Management and franchise | 66.9 | % |
| 5.2 | % | pts. |
| $ | 150.82 |
| 14.0 | % |
| $ | 100.94 |
| 23.6 | % |
| Ownership(1) | 71.2 |
|
| 27.7 |
|
|
|
| 208.10 |
| 29.2 |
|
|
| 148.27 |
| 111.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| System-wide | 67.0 | % |
| 5.5 | % | pts. |
| $ | 151.81 |
| 14.5 | % |
| $ | 101.72 |
| 24.8 | % |
| HILTON WORLDWIDE HOLDINGS INC. COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS (continued) BY REGION, BRAND AND SEGMENT (unaudited) | ||||||||||||||||||
|
| Year Ended December 31, | |||||||||||||||||
|
| Occupancy |
| ADR |
| RevPAR | |||||||||||||
|
| 2022 |
| vs. 2021 |
| 2022 |
| vs. 2021 |
| 2022 |
| vs. 2021 | |||||||
| Region |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| U.S. | 69.9 | % |
| 8.8 | % | pts. |
| $ | 157.44 |
| 19.3 | % |
| $ | 110.09 |
| 36.5 | % |
| Americas (excluding U.S.) | 63.8 |
|
| 20.6 |
|
|
|
| 138.55 |
| 28.5 |
|
|
| 88.44 |
| 89.8 |
|
| Europe | 67.0 |
|
| 25.6 |
|
|
|
| 147.00 |
| 43.8 |
|
|
| 98.51 |
| 132.5 |
|
| Middle East & Africa | 66.6 |
|
| 14.6 |
|
|
|
| 154.57 |
| 21.7 |
|
|
| 102.99 |
| 56.0 |
|
| Asia Pacific | 53.2 |
|
| 2.4 |
|
|
|
| 103.73 |
| 13.8 |
|
|
| 55.17 |
| 19.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Brand |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Waldorf Astoria Hotels & Resorts | 55.3 | % |
| 14.3 | % | pts. |
| $ | 491.14 |
| 7.3 | % |
| $ | 271.69 |
| 44.6 | % |
| Conrad Hotels & Resorts | 57.7 |
|
| 14.7 |
|
|
|
| 272.35 |
| 39.1 |
|
|
| 157.02 |
| 86.5 |
|
| Canopy by Hilton | 62.9 |
|
| 15.0 |
|
|
|
| 195.37 |
| 20.9 |
|
|
| 122.92 |
| 58.7 |
|
| Hilton Hotels & Resorts | 62.2 |
|
| 17.9 |
|
|
|
| 181.69 |
| 24.5 |
|
|
| 112.93 |
| 74.6 |
|
| Curio Collection by Hilton | 63.2 |
|
| 14.0 |
|
|
|
| 229.00 |
| 17.6 |
|
|
| 144.66 |
| 51.0 |
|
| DoubleTree by Hilton | 63.3 |
|
| 13.1 |
|
|
|
| 136.98 |
| 19.1 |
|
|
| 86.67 |
| 50.2 |
|
| Tapestry Collection by Hilton | 64.5 |
|
| 12.8 |
|
|
|
| 167.74 |
| 17.2 |
|
|
| 108.21 |
| 46.3 |
|
| Embassy Suites by Hilton | 68.7 |
|
| 12.1 |
|
|
|
| 173.74 |
| 19.0 |
|
|
| 119.37 |
| 44.6 |
|
| Hilton Garden Inn | 68.0 |
|
| 9.7 |
|
|
|
| 138.62 |
| 19.4 |
|
|
| 94.30 |
| 39.2 |
|
| Hampton by Hilton | 69.2 |
|
| 6.0 |
|
|
|
| 129.22 |
| 15.7 |
|
|
| 89.44 |
| 26.7 |
|
| Tru by Hilton | 70.0 |
|
| 6.4 |
|
|
|
| 123.72 |
| 15.5 |
|
|
| 86.62 |
| 27.2 |
|
| Homewood Suites by Hilton | 78.5 |
|
| 4.8 |
|
|
|
| 149.26 |
| 19.4 |
|
|
| 117.16 |
| 27.1 |
|
| Home2 Suites by Hilton | 77.9 |
|
| 3.5 |
|
|
|
| 134.04 |
| 16.7 |
|
|
| 104.47 |
| 22.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Segment |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Management and franchise | 67.6 | % |
| 10.0 | % | pts. |
| $ | 150.28 |
| 20.3 | % |
| $ | 101.57 |
| 41.2 | % |
| Ownership(1) | 60.9 |
|
| 30.6 |
|
|
|
| 200.19 |
| 30.9 |
|
|
| 121.90 |
| 162.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| System-wide | 67.5 | % |
| 10.3 | % | pts. |
| $ | 151.01 |
| 20.6 | % |
| $ | 101.90 |
| 42.5 | % |
____________
| (1) | Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest. |
| HILTON WORLDWIDE HOLDINGS INC. PROPERTY SUMMARY As of December 31, 2022 | |||||||||||||||
|
| Owned / Leased(1) |
| Managed |
| Franchised |
| Total | ||||||||
|
| Properties |
| Rooms |
| Properties |
| Rooms |
| Properties |
| Rooms |
| Properties |
| Rooms |
| Waldorf Astoria Hotels & Resorts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 12 |
| 4,489 |
| — |
| — |
| 12 |
| 4,489 |
| Americas (excluding U.S.) | — |
| — |
| 3 |
| 425 |
| — |
| — |
| 3 |
| 425 |
| Europe | 2 |
| 463 |
| 4 |
| 898 |
| — |
| — |
| 6 |
| 1,361 |
| Middle East & Africa | — |
| — |
| 7 |
| 1,867 |
| — |
| — |
| 7 |
| 1,867 |
| Asia Pacific | — |
| — |
| 6 |
| 1,259 |
| — |
| — |
| 6 |
| 1,259 |
| LXR Hotels & Resorts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| — |
| — |
| 3 |
| 522 |
| 3 |
| 522 |
| Americas (excluding U.S.) | — |
| — |
| — |
| — |
| 1 |
| 76 |
| 1 |
| 76 |
| Europe | — |
| — |
| 1 |
| 70 |
| 1 |
| 307 |
| 2 |
| 377 |
| Middle East & Africa | — |
| — |
| 1 |
| 41 |
| 3 |
| 282 |
| 4 |
| 323 |
| Asia Pacific | — |
| — |
| — |
| — |
| 1 |
| 114 |
| 1 |
| 114 |
| Conrad Hotels & Resorts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 6 |
| 2,227 |
| 2 |
| 1,730 |
| 8 |
| 3,957 |
| Americas (excluding U.S.) | — |
| — |
| 3 |
| 787 |
| — |
| — |
| 3 |
| 787 |
| Europe | — |
| — |
| 4 |
| 1,155 |
| 1 |
| 107 |
| 5 |
| 1,262 |
| Middle East & Africa | 1 |
| 614 |
| 4 |
| 1,689 |
| — |
| — |
| 5 |
| 2,303 |
| Asia Pacific | 1 |
| 164 |
| 22 |
| 7,078 |
| 1 |
| 659 |
| 24 |
| 7,901 |
| Canopy by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| — |
| — |
| 26 |
| 4,490 |
| 26 |
| 4,490 |
| Americas (excluding U.S.) | — |
| — |
| 2 |
| 272 |
| — |
| — |
| 2 |
| 272 |
| Europe | — |
| — |
| 1 |
| 123 |
| 4 |
| 917 |
| 5 |
| 1,040 |
| Middle East & Africa | — |
| — |
| 1 |
| 200 |
| — |
| — |
| 1 |
| 200 |
| Asia Pacific | — |
| — |
| 4 |
| 614 |
| — |
| — |
| 4 |
| 614 |
| Signia by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 2 |
| 1,814 |
| — |
| — |
| 2 |
| 1,814 |
| Hilton Hotels & Resorts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 60 |
| 44,578 |
| 186 |
| 58,188 |
| 246 |
| 102,766 |
| Americas (excluding U.S.) | 1 |
| 405 |
| 30 |
| 11,559 |
| 24 |
| 7,241 |
| 55 |
| 19,205 |
| Europe | 38 |
| 11,262 |
| 46 |
| 15,580 |
| 43 |
| 11,280 |
| 127 |
| 38,122 |
| Middle East & Africa | 4 |
| 1,705 |
| 39 |
| 13,668 |
| 4 |
| 1,738 |
| 47 |
| 17,111 |
| Asia Pacific | 5 |
| 2,999 |
| 115 |
| 40,610 |
| 9 |
| 3,557 |
| 129 |
| 47,166 |
| Curio Collection by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 10 |
| 4,000 |
| 64 |
| 14,003 |
| 74 |
| 18,003 |
| Americas (excluding U.S.) | — |
| — |
| 2 |
| 99 |
| 17 |
| 2,196 |
| 19 |
| 2,295 |
| Europe | — |
| — |
| 6 |
| 516 |
| 27 |
| 3,534 |
| 33 |
| 4,050 |
| Middle East & Africa | — |
| — |
| 4 |
| 741 |
| 2 |
| 557 |
| 6 |
| 1,298 |
| Asia Pacific | — |
| — |
| 4 |
| 773 |
| 2 |
| 248 |
| 6 |
| 1,021 |
| DoubleTree by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 31 |
| 10,397 |
| 348 |
| 79,122 |
| 379 |
| 89,519 |
| Americas (excluding U.S.) | — |
| — |
| 3 |
| 587 |
| 39 |
| 7,822 |
| 42 |
| 8,409 |
| Europe | — |
| — |
| 14 |
| 3,580 |
| 109 |
| 18,610 |
| 123 |
| 22,190 |
| Middle East & Africa | — |
| — |
| 19 |
| 4,939 |
| 6 |
| 825 |
| 25 |
| 5,764 |
| Asia Pacific | — |
| — |
| 83 |
| 22,174 |
| 8 |
| 2,101 |
| 91 |
| 24,275 |
| HILTON WORLDWIDE HOLDINGS INC. PROPERTY SUMMARY (continued) As of December 31, 2022 | |||||||||||||||
|
| Owned / Leased(1) |
| Managed |
| Franchised |
| Total | ||||||||
|
| Properties |
| Rooms |
| Properties |
| Rooms |
| Properties |
| Rooms |
| Properties |
| Rooms |
| Tapestry Collection by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| — |
| — |
| 78 |
| 9,382 |
| 78 |
| 9,382 |
| Americas (excluding U.S.) | — |
| — |
| 1 |
| 138 |
| 7 |
| 740 |
| 8 |
| 878 |
| Europe | — |
| — |
| — |
| — |
| 6 |
| 360 |
| 6 |
| 360 |
| Middle East & Africa | — |
| — |
| 1 |
| 50 |
| — |
| — |
| 1 |
| 50 |
| Asia Pacific | — |
| — |
| 1 |
| 266 |
| 1 |
| 175 |
| 2 |
| 441 |
| Embassy Suites by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 38 |
| 10,121 |
| 216 |
| 48,653 |
| 254 |
| 58,774 |
| Americas (excluding U.S.) | — |
| — |
| 2 |
| 354 |
| 6 |
| 1,649 |
| 8 |
| 2,003 |
| Middle East & Africa | — |
| — |
| — |
| — |
| 1 |
| 151 |
| 1 |
| 151 |
| Motto by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| — |
| — |
| 3 |
| 871 |
| 3 |
| 871 |
| Americas (excluding U.S.) | — |
| — |
| — |
| — |
| 1 |
| 115 |
| 1 |
| 115 |
| Europe | — |
| — |
| — |
| — |
| 1 |
| 108 |
| 1 |
| 108 |
| Hilton Garden Inn |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 6 |
| 689 |
| 737 |
| 101,796 |
| 743 |
| 102,485 |
| Americas (excluding U.S.) | — |
| — |
| 13 |
| 1,992 |
| 51 |
| 7,664 |
| 64 |
| 9,656 |
| Europe | — |
| — |
| 18 |
| 3,486 |
| 61 |
| 9,849 |
| 79 |
| 13,335 |
| Middle East & Africa | — |
| — |
| 17 |
| 3,555 |
| 3 |
| 474 |
| 20 |
| 4,029 |
| Asia Pacific | — |
| — |
| 58 |
| 12,688 |
| 7 |
| 1,149 |
| 65 |
| 13,837 |
| Hampton by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 23 |
| 2,986 |
| 2,309 |
| 228,576 |
| 2,332 |
| 231,562 |
| Americas (excluding U.S.) | — |
| — |
| 12 |
| 1,537 |
| 115 |
| 13,931 |
| 127 |
| 15,468 |
| Europe | — |
| — |
| 16 |
| 2,697 |
| 109 |
| 16,965 |
| 125 |
| 19,662 |
| Middle East & Africa | — |
| — |
| 5 |
| 1,459 |
| — |
| — |
| 5 |
| 1,459 |
| Asia Pacific | — |
| — |
| — |
| — |
| 274 |
| 43,892 |
| 274 |
| 43,892 |
| Tru by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| — |
| — |
| 231 |
| 22,569 |
| 231 |
| 22,569 |
| Americas (excluding U.S.) | — |
| — |
| — |
| — |
| 4 |
| 453 |
| 4 |
| 453 |
| Homewood Suites by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 9 |
| 1,131 |
| 499 |
| 57,064 |
| 508 |
| 58,195 |
| Americas (excluding U.S.) | — |
| — |
| 3 |
| 406 |
| 24 |
| 2,688 |
| 27 |
| 3,094 |
| Home2 Suites by Hilton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. | — |
| — |
| 2 |
| 210 |
| 545 |
| 57,080 |
| 547 |
| 57,290 |
| Americas (excluding U.S.) | — |
| — |
| — |
| — |
| 7 |
| 753 |
| 7 |
| 753 |
| Asia Pacific | — |
| — |
| — |
| — |
| 22 |
| 3,309 |
| 22 |
| 3,309 |
| Other | — |
| — |
| 4 |
| 1,463 |
| 6 |
| 1,436 |
| 10 |
| 2,899 |
| Total hotels | 52 |
| 17,612 |
| 778 |
| 244,037 |
| 6,255 |
| 852,078 |
| 7,085 |
| 1,113,727 |
| Hilton Grand Vacations | — |
| — |
| — |
| — |
| 80 |
| 13,703 |
| 80 |
| 13,703 |
| Total system | 52 |
| 17,612 |
| 778 |
| 244,037 |
| 6,335 |
| 865,781 |
| 7,165 |
| 1,127,430 |
____________
| (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 (dollars in millions) (unaudited) | |||||||||||||
|
| Three Months Ended |
|
| ||||||||||
|
| December 31, |
| Increase / (Decrease) | ||||||||||
|
| 2022 |
| 2021 |
| $ |
| % | ||||||
| Capital expenditures for property and equipment(1) | $ | 20 |
| $ | 18 |
| 2 |
|
| 11.1 |
| ||
| Capitalized software costs(2) |
| 20 |
|
| 16 |
| 4 |
|
| 25.0 |
| ||
| Total capital expenditures |
| 40 |
|
| 34 |
| 6 |
|
| 17.6 |
| ||
| Contract acquisition costs |
| 20 |
|
| 40 |
| (20 | ) |
| (50.0 | ) | ||
| Total capital expenditures and contract acquisition costs | $ | 60 |
| $ | 74 |
| (14 | ) |
| (18.9 | ) | ||
|
| Year Ended |
|
| ||||||||||
|
| December 31, |
| Increase / (Decrease) | ||||||||||
|
| 2022 |
| 2021 |
| $ |
| % | ||||||
| Capital expenditures for property and equipment(1) | $ | 39 |
| $ | 35 |
| 4 |
|
| 11.4 |
| ||
| Capitalized software costs(2) |
| 63 |
|
| 44 |
| 19 |
|
| 43.2 |
| ||
| Total capital expenditures |
| 102 |
|
| 79 |
| 23 |
|
| 29.1 |
| ||
| Contract acquisition costs |
| 81 |
|
| 200 |
| (119 | ) |
| (59.5 | ) | ||
| Total capital expenditures and contract acquisition costs | $ | 183 |
| $ | 279 |
| (96 | ) |
| (34.4 | ) | ||
____________
| (1) | Represents expenditures for hotels, corporate and other property and equipment, which include amounts indirectly reimbursed by hotel owners of $6 million and $3 million for the three months ended December 31, 2022 and 2021, respectively, and $8 million and $6 million for the years ended December 31, 2022 and 2021, respectively. Excludes expenditures for FF&E replacement reserves of $14 million and $18 million for the three months ended December 31, 2022 and 2021, respectively, and $54 million and $48 million for the years ended December 31, 2022 and 2021, respectively. |
| (2) | Amounts include $19 million and $12 million of expenditures that were indirectly reimbursed by hotel owners for the three months ended December 31, 2022 and 2021, respectively, and $59 million and $37 million for the years ended December 31, 2022 and 2021, respectively. |
| HILTON WORLDWIDE HOLDINGS INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS (in millions, except per share data) (unaudited) | |||||||||||||||
|
| Three Months Ended |
| Year Ended | ||||||||||||
|
| December 31, |
| December 31, | ||||||||||||
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
|
| Net income attributable to Hilton stockholders, as reported | $ | 328 |
|
| $ | 147 |
|
| $ | 1,255 |
|
| $ | 410 |
|
| Diluted EPS, as reported | $ | 1.21 |
|
| $ | 0.52 |
|
| $ | 4.53 |
|
| $ | 1.46 |
|
| Special items: |
|
|
|
|
|
|
| ||||||||
| Net other expenses from managed and franchised properties | $ | 112 |
|
| $ | 53 |
|
| $ | 39 |
|
| $ | 110 |
|
| Purchase accounting amortization(1) |
| 11 |
|
|
| 12 |
|
|
| 45 |
|
|
| 47 |
|
| FF&E replacement reserves |
| 14 |
|
|
| 18 |
|
|
| 54 |
|
|
| 48 |
|
| Loss on debt extinguishment(2) |
| — |
|
|
| — |
|
|
| — |
|
|
| 69 |
|
| Tax-related adjustment(3) |
| — |
|
|
| (5 | ) |
|
| — |
|
|
| (43 | ) |
| Other adjustments(4) |
| 5 |
|
|
| (3 | ) |
|
| (4 | ) |
|
| 15 |
|
| Total special items before taxes |
| 142 |
|
|
| 75 |
|
|
| 134 |
|
|
| 246 |
|
| Income tax expense on special items |
| (36 | ) |
|
| (20 | ) |
|
| (32 | ) |
|
| (72 | ) |
| Total special items after taxes | $ | 106 |
|
| $ | 55 |
|
| $ | 102 |
|
| $ | 174 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Net income, adjusted for special items | $ | 434 |
|
| $ | 202 |
|
| $ | 1,357 |
|
| $ | 584 |
|
| Diluted EPS, adjusted for special items | $ | 1.59 |
|
| $ | 0.72 |
|
| $ | 4.89 |
|
| $ | 2.08 |
|
____________
| (1) | Amounts represent the amortization expense related to finite-lived intangible assets that were recorded at fair value in 2007 when the Company became a wholly owned subsidiary of affiliates of Blackstone Inc. The majority of the related assets that were remaining as of December 31, 2022 will be fully amortized during 2023. |
| (2) | The amount relates to the redemption of senior unsecured notes and includes a redemption premium of $55 million and the accelerated recognition of unamortized deferred financing costs related to those senior unsecured notes of $14 million. |
| (3) | Amounts include income tax benefits recognized related to changes in effective tax rates, which did not have an effect on cash paid for taxes in the periods. |
| (4) | Amounts for the three months and year ended December 31, 2022 include net losses (gains) related to certain of Hilton's investments in unconsolidated affiliates, which were recognized in other non-operating income, net. Amount for the year ended December 31, 2021 includes costs recognized for certain legal settlements, which were recognized in general and administrative expenses. All periods include net losses (gains) on asset dispositions. |
| HILTON WORLDWIDE HOLDINGS INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES NET INCOME MARGIN AND ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (dollars in millions) (unaudited) | |||||||||||||||
|
| Three Months Ended |
| Year Ended | ||||||||||||
|
| December 31, |
| December 31, | ||||||||||||
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 | |
| Net income | $ | 333 |
|
| $ | 148 |
|
| $ | 1,257 |
|
| $ | 407 | |
| Interest expense |
| 120 |
|
|
| 95 |
|
|
| 415 |
|
|
| 397 | |
| Income tax expense |
| 70 |
|
|
| 89 |
|
|
| 477 |
|
|
| 153 | |
| Depreciation and amortization expenses |
| 39 |
|
|
| 45 |
|
|
| 162 |
|
|
| 188 | |
| EBITDA |
| 562 |
|
|
| 377 |
|
|
| 2,311 |
|
|
| 1,145 | |
| Loss (gain) on sales of assets, net |
| — |
|
|
| (1 | ) |
|
| — |
|
|
| 7 | |
| Loss (gain) on foreign currency transactions |
| (1 | ) |
|
| 8 |
|
|
| (5 | ) |
|
| 7 | |
| Loss on debt extinguishment |
| — |
|
|
| — |
|
|
| — |
|
|
| 69 | |
| FF&E replacement reserves |
| 14 |
|
|
| 18 |
|
|
| 54 |
|
|
| 48 | |
| Share-based compensation expense |
| 36 |
|
|
| 49 |
|
|
| 162 |
|
|
| 193 | |
| Amortization of contract acquisition costs |
| 10 |
|
|
| 9 |
|
|
| 38 |
|
|
| 32 | |
| Net other expenses from managed and franchised properties |
| 112 |
|
|
| 53 |
|
|
| 39 |
|
|
| 110 | |
| Other adjustments(1) |
| 7 |
|
|
| (1 | ) |
|
| — |
|
|
| 18 | |
| Adjusted EBITDA | $ | 740 |
|
| $ | 512 |
|
| $ | 2,599 |
|
| $ | 1,629 | |
____________
| (1) | Amount for the year ended December 31, 2022 was less than $1 million. Amounts for the three months and year ended December 31, 2022 include the net losses (gains) related to certain of Hilton's investments in unconsolidated affiliates. Amounts for the three months and year ended December 31, 2021 include costs recognized for certain legal settlements. All periods include severance and other items. |
|
| Three Months Ended |
| Year Ended | ||||||||||||
|
| December 31, |
| December 31, | ||||||||||||
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
|
| Total revenues, as reported | $ | 2,444 |
|
| $ | 1,836 |
|
| $ | 8,773 |
|
| $ | 5,788 |
|
| Add: amortization of contract acquisition costs |
| 10 |
|
|
| 9 |
|
|
| 38 |
|
|
| 32 |
|
| Less: other revenues from managed and franchised properties |
| (1,375 | ) |
|
| (1,062 | ) |
|
| (5,037 | ) |
|
| (3,344 | ) |
| Total revenues, as adjusted | $ | 1,079 |
|
| $ | 783 |
|
| $ | 3,774 |
|
| $ | 2,476 |
|
|
|
|
|
|
|
|
|
| ||||||||
| Net income | $ | 333 |
|
| $ | 148 |
|
| $ | 1,257 |
|
| $ | 407 |
|
| Net income margin |
| 13.6 | % |
|
| 8.1 | % |
|
| 14.3 | % |
|
| 7.0 | % |
|
|
|
|
|
|
|
|
| ||||||||
| Adjusted EBITDA | $ | 740 |
|
| $ | 512 |
|
| $ | 2,599 |
|
| $ | 1,629 |
|
| Adjusted EBITDA margin |
| 68.6 | % |
|
| 65.4 | % |
|
| 68.9 | % |
|
| 65.8 | % |
| HILTON WORLDWIDE HOLDINGS INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES LONG-TERM DEBT TO NET INCOME RATIO AND NET DEBT AND NET DEBT TO ADJUSTED EBITDA RATIO (dollars in millions) (unaudited) | |||||||
|
| December 31, | ||||||
|
|
| 2022 |
|
|
| 2021 |
|
| Long-term debt, including current maturities | $ | 8,747 |
|
| $ | 8,766 |
|
| Add: unamortized deferred financing costs and discount |
| 73 |
|
|
| 87 |
|
| Long-term debt, including current maturities and excluding the deduction for unamortized deferred financing costs and discount |
| 8,820 |
|
|
| 8,853 |
|
| Less: cash and cash equivalents |
| (1,209 | ) |
|
| (1,427 | ) |
| Less: restricted cash and cash equivalents |
| (77 | ) |
|
| (85 | ) |
| Net debt | $ | 7,534 |
|
| $ | 7,341 |
|
|
|
|
|
| ||||
| Net income | $ | 1,257 |
|
| $ | 407 |
|
| Long-term debt to net income ratio |
| 7.0 |
|
|
| 21.5 |
|
|
|
|
|
| ||||
| Adjusted EBITDA | $ | 2,599 |
|
| $ | 1,629 |
|
| Net debt to Adjusted EBITDA ratio |
| 2.9 |
|
|
| 4.5 |
|
|
|
|
|
| ||||
| HILTON WORLDWIDE HOLDINGS INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES OUTLOOK: NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS (in millions, except per share data) (unaudited) | |||||||
|
| Three Months Ending | ||||||
|
| March 31, 2023 | ||||||
|
| Low Case |
| High Case | ||||
| Net income attributable to Hilton stockholders | $ | 270 |
|
| $ | 286 |
|
| Diluted EPS(1) | $ | 1.00 |
|
| $ | 1.06 |
|
| Special items(2): |
|
|
| ||||
| Purchase accounting amortization | $ | 11 |
|
| $ | 11 |
|
| FF&E replacement reserves |
| 16 |
|
|
| 16 |
|
| Total special items before taxes |
| 27 |
|
|
| 27 |
|
| Income tax expense on special items |
| (5 | ) |
|
| (5 | ) |
| Total special items after taxes | $ | 22 |
|
| $ | 22 |
|
|
|
|
|
| ||||
| Net income, adjusted for special items | $ | 292 |
|
| $ | 308 |
|
| Diluted EPS, adjusted for special items(1) | $ | 1.08 |
|
| $ | 1.14 |
|
|
| Year Ending | ||||||
|
| December 31, 2023 | ||||||
|
| Low Case |
| High Case | ||||
| Net income attributable to Hilton stockholders | $ | 1,378 |
|
| $ | 1,450 |
|
| Diluted EPS(1) | $ | 5.10 |
|
| $ | 5.36 |
|
| Special items(2): |
|
|
| ||||
| Purchase accounting amortization |
| 37 |
|
|
| 37 |
|
| FF&E replacement reserves |
| 68 |
|
|
| 68 |
|
| Total special items before taxes |
| 105 |
|
|
| 105 |
|
| Income tax expense on special items |
| (18 | ) |
|
| (18 | ) |
| Total special items after taxes | $ | 87 |
|
| $ | 87 |
|
|
|
|
|
| ||||
| Net income, adjusted for special items | $ | 1,465 |
|
| $ | 1,537 |
|
| Diluted EPS, adjusted for special items(1) | $ | 5.42 |
|
| $ | 5.68 |
|
____________
| (1) | Does not include the effect of potential share repurchases. |
| (2) | See "—Net Income and Diluted EPS, Adjusted for Special Items" for details of these special items. |
| HILTON WORLDWIDE HOLDINGS INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES OUTLOOK: ADJUSTED EBITDA (in millions) (unaudited) | |||||||
|
| Three Months Ending | ||||||
|
| March 31, 2023 | ||||||
|
| Low Case |
| High Case | ||||
| Net income | $ | 271 |
| $ | 287 | ||
| Interest expense |
| 116 |
|
| 116 | ||
| Income tax expense |
| 101 |
|
| 106 | ||
| Depreciation and amortization expenses |
| 38 |
|
| 38 | ||
| EBITDA |
| 526 |
|
| 547 | ||
| FF&E replacement reserves |
| 16 |
|
| 16 | ||
| Share-based compensation expense |
| 34 |
|
| 34 | ||
| Amortization of contract acquisition costs |
| 11 |
|
| 11 | ||
| Other adjustments(1) |
| 3 |
|
| 2 | ||
| Adjusted EBITDA | $ | 590 |
| $ | 610 | ||
|
| Year Ending | ||||||
|
| December 31, 2023 | ||||||
|
| Low Case |
| High Case | ||||
| Net income | $ | 1,382 |
| $ | 1,454 | ||
| Interest expense |
| 440 |
|
| 440 | ||
| Income tax expense |
| 541 |
|
| 569 | ||
| Depreciation and amortization expenses |
| 151 |
|
| 151 | ||
| EBITDA |
| 2,514 |
|
| 2,614 | ||
| FF&E replacement reserves |
| 68 |
|
| 68 | ||
| Share-based compensation expense |
| 159 |
|
| 159 | ||
| Amortization of contract acquisition costs |
| 46 |
|
| 46 | ||
| Other adjustments(1) |
| 13 |
|
| 13 | ||
| Adjusted EBITDA | $ | 2,800 |
| $ | 2,900 | ||
____________
| (1) | Includes adjustments for severance and other items. See "—Net Income Margin and Adjusted EBITDA and Adjusted EBITDA Margin" for details of these adjustments. |