Hilton Grows Profit in Q4 2025, Targets Stronger 2026 Earnings

Hilton has reported fourth-quarter and full-year 2025 results, showing higher earnings per share in the fourth quarter, continued hotel openings, and a record development pipeline. The company also guided to modest RevPAR growth in 2026, alongside higher projected net income and EBITDA and continued capital returns.

Fourth quarter 2025 financial results

• Diluted EPS: $1.27 (down from $2.06 in Q4 2024); adjusted diluted EPS: $2.08, compared to $1.76 year over year. (adjusted removes special items).
• Net income: $298 million (down from $505 million a year ago)
• Adjusted EBITDA: $946 million (up from $858 million in Q4 2024).
• System-wide comparable RevPAR: up 0.5 percent (compared with +3.5 percent reported in Q4 2024)
• Growth and capital return: Hilton added 26,000 rooms (up from 22,600) in the quarter and returned $792 million (up from $781 million) to shareholders in the fourth quarter (dividends + buybacks).

Full year 2025 financial results

• Diluted EPS: $6.12 (slightly down from $6.14 in 2024); adjusted diluted EPS: $8.11 (up from $7.12 year over year).
• Net income: $1.461 billion (down from $1.539 billion in 2024).
• Adjusted EBITDA: $3.725 billion (up from $3.429 billion in 2024).
• System-wide comparable RevPAR: up 0.4 percent on a comparable, currency-neutral basis vs. 2024 (compared with +2.7 percent reported in 2024, which was measured vs. 2023)
• Scale and shareholder returns: Hilton opened 97,000 rooms in 2025 (down from 98,400 in 2024), driving 6.7 percent net unit growth (down from 7.3 percent), and returned $3.3 billion to shareholders (up from $3 billion).

Strategic initiatives and key milestones of 2025

• Record pipeline: Hilton approved 37,400 new rooms for development in Q4, bringing its pipeline to a record 520,500 rooms (up 4 percent year over year).
• Balance sheet move: In December 2025, Hilton issued $1 billion of 5.5 percent senior notes due 2034 (and disclosed that proceeds were used in part to redeem 2028 notes).
• New brand launch: Hilton announced Apartment Collection by Hilton in January 2026 as part of its brand expansion strategy.
• Beyond-hotel loyalty experiences: Hilton expanded “Hilton Honors Adventures” in December 2025, adding Explora Journeys as a partner after AutoCamp.

2026 outlook and growth expectations

• RevPAR: system-wide comparable RevPAR expected to rise 1 percent–2 percent (currency neutral).
• Profit: net income projected at $1.982–$2.011 billion; adjusted EBITDA projected at $4–$4.04 billion.
• EPS: diluted EPS projected at $8.49–$8.61; adjusted diluted EPS projected at $8.65–$8.77.
• Unit growth: net unit growth expected at 6–7 percent.
• Capital returns: about $3.5 billion planned for 2026.

In November 2025, Hilton became the first official hotel partner for Riyadh Air’s new loyalty program, Sfeer. Early members of Sfeer in Saudi Arabia who participate in Hilton Honors will receive an upgrade to Hilton Honors Gold status for 30 days, applicable at any Hilton hotel worldwide.

Photo by Kenjiro Yagi on Unsplash