The 5 Most Interesting Analyst Questions From Hilton’s Q1 Earnings Call

June 22, 2025 at 23:53 PM EDT

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Hilton’s first quarter results for 2025 were met with a positive market reaction, reflecting the company’s ability to deliver non-GAAP earnings above Wall Street expectations despite a slight revenue shortfall. Management highlighted that solid group bookings and continued expansion of its global hotel portfolio supported performance, even as leisure demand softened toward the end of the quarter. CEO Chris Nassetta attributed the quarter’s results to strength in urban and group travel segments, as well as momentum in international markets, noting, “We reported system-wide RevPAR growth of 2.5% year-over-year, driven by strong momentum from the end of last year that carried into 2025.”

Is now the time to buy HLT? Find out in our full research report (it’s free).

Hilton (HLT) Q1 CY2025 Highlights:

Revenue: $2.7 billion vs analyst estimates of $2.72 billion (4.7% year-on-year growth, 0.9% miss)
Adjusted EPS: $1.72 vs analyst estimates of $1.61 (7% beat)
Adjusted EBITDA: $795 million vs analyst estimates of $784.1 million (29.5% margin, 1.4% beat)
Management raised its full-year Adjusted EPS guidance to $7.85 at the midpoint, a 1.1% increase
EBITDA guidance for the full year is $3.68 billion at the midpoint, in line with analyst expectations
Operating Margin: 19.9%, in line with the same quarter last year
RevPAR: $103.59 at quarter end, in line with the same quarter last year
Market Capitalization: $59.15 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Hilton’s Q1 Earnings Call

Carlo Santarelli (Deutsche Bank) asked how Hilton is preparing for a potential recession. CEO Chris Nassetta emphasized the resilience of Hilton’s asset-light business model and noted, “We are fully prepared for whatever eventuality there is,” citing strong liquidity and high margins.
Shaun Kelley (Bank of America) inquired about the impact of uncertainty on hotel development. Nassetta and CFO Kevin Jacobs explained that while developers are cautious, the current pipeline remains robust, and conversions help offset any slowdown in new builds.
Stephen Grambling (Morgan Stanley) questioned which segments would feel a downturn first. Nassetta replied that leisure would likely soften before group or business transient, while Hilton’s cost structure and high-margin model provide flexibility to adapt.
David Katz (Jefferies) asked about the economics of deals in Asia Pacific, especially China. Management said joint ventures in China are asset-light, and future growth will focus on franchise models with higher fees per room as the brand mix evolves.
Robin Farley (UBS) requested clarification on fee growth and timing effects. Jacobs explained that most of the first quarter’s fee outperformance was timing-related, but underlying non-RevPAR fees will remain above long-term expectations.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will be watching (1) progress on international expansion and the pace of hotel openings, especially in emerging markets like Southeast Asia and India, (2) trends in group and business transient bookings to gauge the stability of core demand, and (3) the contribution of non-RevPAR fee income to overall profitability. Execution on conversions and the rollout of new brands will also be important signposts for Hilton’s ability to drive growth despite macro uncertainty.

Hilton currently trades at $248.86, up from $221.72 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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The 5 Most Interesting Analyst Questions From Hilton’s Q1 Earnings Call

Hilton (HLT) Q1 CY2025 Highlights:

Our Top 5 Analyst Questions Hilton’s Q1 Earnings Call

Catalysts in Upcoming Quarters

High-Quality Stocks for All Market Conditions

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