Hilton Worldwide Holdings Inc. Q1 FY2026 earnings call

Chris Nassetta mentioned the first quarter performance was strong with RevPAR and net unit growth driving results above the high end of guidance, demand trends strengthening, system share gains, strong brands, commercial engines and partnerships, innovative culture fueling growth opportunities, asset - light business model generating free cash flow and returning capital to shareholders, with over $860 million returned in Q1 and ~$3.5 billion expected for the year. Kevin Jacobs reviewed Q1 results including System - wide RevPAR growth, adjusted EBITDA, management and franchise fees, and regional performance. Mentioned innovation like deploying Hilton AI Planner, and cultural recognition with being top - rated hospitality company and Great Place to Work honors in multiple countries.

First quarter System - wide RevPAR increased 3.6% year - over - year. Adjusted EBITDA was $901 million, up 13% year - over - year. Management and franchise fees grew 10.4% year - over - year. Diluted earnings per share adjusted for special items was $2.01. Regional performance: Comparable U.S. RevPAR increased 3.4% in Q1, expected full - year U.S. RevPAR growth at the high end or above System - wide guidance. Americas outside U.S. RevPAR increased 4.4% in Q1, expected full - year low to mid - single - digit growth. Europe RevPAR grew 6.9% year - over - year in Q1, expected full - year low to mid - single - digit growth. Middle East and Africa RevPAR decreased 1.7% year - over - year in Q1, expected full - year mid - to high teens decline. Asia Pacific ex China RevPAR was up 9.1% in Q1, China RevPAR increased 1.3% in Q1, expected full - year low single - digit growth in Asia Pacific, flat in China. Development: Opened 131 hotels totaling over 16,000 rooms in Q1. Global pipeline stands at a record 527,000 rooms. Expected full - year net unit growth of between 6% to 7%.

Second quarter System - wide RevPAR growth expected between 2% and 3%, adjusted EBITDA expected between $1.015 billion and $1.035 billion, diluted EPS adjusted for special items expected between $2.18 and $2.24. Full - year RevPAR growth expected 2% to 3%, adjusted EBITDA expected between $4.02 billion and $4.06 billion, diluted EPS adjusted for special items expected between $8.79 and $8.91. Expected to return approximately $3.5 billion to shareholders in 2026.

Middle East conflict impacted RevPAR in Middle East and Africa region, with Q2 most dramatically affected and potential knock - on impacts on other regions. Development in Middle East with ~2% of annual deliveries potentially slowed due to conflict.

Q: Shaun Kelley asked about U.S. demand dynamics and C - shaped economy.

A: Christopher Nassetta explained U.S. economic fundamental factors driving demand convergence.

Q: Dan Politzer asked about Middle East business exposure and impact on other regions.

A: Christopher Nassetta stated Middle East business percentage and its impact.

Q: Stephen Grambling asked about Select brands.

A: Christopher Nassetta explained selection criteria of Select brands.

Q: Elizabeth Dove asked about long - term opportunities of AI.

A: Christopher Nassetta expounded on AI opportunities in efficiency, distribution, customer experience, etc.

Q: Steven Pizzella asked about future trend of conversion rate.

A: Christopher Nassetta stated conversion rate may be in 30% - 40% range.