Key Highlights

  • System-wide comparable RevPAR rose 5.8% on a currency neutral basis, while U.S. RevPAR rose 7.0%.
  • Adjusted EBITDA rose 8.4% to USD 1.058 billion, and adjusted diluted EPS reached USD 2.45 against USD 2.11.
  • Net unit growth was 6.0%, supported by 27,000 gross room additions, the largest organic opening quarter in company history.
  • Management guided 2026 adjusted EBITDA to USD 4.06 billion to USD 4.08 billion, citing lower Middle East and timeshare results.

RevPAR and Fee Growth

Hilton (NYSE:HLT) reported third-quarter system-wide comparable revenue per available room growth of 5.8% on a currency neutral basis on Tuesday, driven by rate and occupancy. U.S. RevPAR rose 7.0% on business and group demand and calendar shifts tied to the World Cup, and group RevPAR rose 8.2%. China RevPAR fell 5.4% on weak consumer sentiment and government limits on business travel, while Middle East and Africa RevPAR fell 5.6% as regional conflict intensified.

Revenue was USD 3.325 billion against USD 3.120 billion, and net income attributable to stockholders was USD 536 million, or USD 2.37 per diluted share, against USD 420 million and USD 1.78. Adjusted EBITDA rose 8.4% to USD 1.058 billion despite ownership renovations and Middle East disruption, and adjusted diluted EPS was USD 2.45 against USD 2.11. Management and franchise fees rose 9.5%.

Development Pipeline

The system had 9,620 properties and 1,408,417 rooms in 144 countries and territories at quarter end, and the Hilton Honors program reached 270 million members, up 15%. The development pipeline held 3,869 hotels and 543,100 rooms, up 5% in rooms, with nearly half under construction. Conversions made up 37% of third-quarter openings, and new construction starts rose 40% from a year earlier.

Chief Executive Christian Nassetta pointed to luxury and lifestyle net unit growth of 11% and 20% over the trailing 12 months. A multiyear development agreement with Scandic Hotels Group opens markets in Sweden, Norway, Denmark and Finland. The company also named Jeff Moore chief technology officer, and plans further owner efficiency initiatives, called RISE 2.0, for the first quarter of 2027.

Guidance, Capital and Listing

For 2026, management guided to RevPAR growth of 4.0% to 4.5%, adjusted EBITDA of USD 4.06 billion to USD 4.08 billion, adjusted diluted EPS of USD 9.07 to USD 9.13 and capital expenditures of USD 350 million to USD 375 million. The outlook reflects lower expectations for the Middle East, where management projects a low double-digit RevPAR decline for the year, and for timeshare license fees that are not performing at the level management had anticipated.

Net debt was USD 12.6 billion, a ratio of 3.2 times adjusted EBITDA. The company repurchased about 8.2 million shares for USD 2.602 billion over nine months, leaving about USD 2.2 billion under its program. Management targets USD 3.5 billion of shareholder returns for 2026, of which USD 2.9 billion has been returned through October. The company also announced a move of its stock listing to Nasdaq on Nov. 5, 2026.

Hotel Markers to Follow

Tracking points include system-wide RevPAR against the 4.0% to 4.5% full-year guide, Middle East RevPAR relative to the low double-digit decline, and China RevPAR against 5.4%.

Further items are net unit growth against 6.0%, the pace of construction starts after the 40% increase, and timeshare license fees.