Executive Summary
Hilton’s QQ3 2024 results show a resilient revenue trajectory amid a still-challenging macro backdrop for travel, with YoY growth of 7.3% and a QoQ decline of 2.9% driven by seasonality and seasonality-adjusted timing. The company delivered solid profitability metrics, including gross margin of approximately 27.5%, operating margin of about 21.7%, and a net margin near 12.0%, supported by a strong EBITDA contribution of $668 million (EBITDA margin ~23.3%). EBITDA and operating income benefited from favorable pricing and occupancy in core markets, even as the company continued to invest modestly in growth and returned capital through debt repayment and share repurchases. On the cash flow front, Hilton generated $664 million of operating cash flow and $617 million of free cash flow, while deploying capital to debt reduction ($986 million of debt repayments) and share repurchases ($725 million). The balance sheet remains highly leveraged with total debt of $11.96 billion and net debt of $10.38 billion, while stockholders’ equity sits in negative territory at roughly $(3.47) billion. Despite negative equity, Hilton’s asset-light model continues to drive meaningful free cash flow, providing a potential path to deleveraging through ongoing cash generation. Absent an earnings-call transcript in this dataset, management commentary could not be quoted directly; investors should monitor occupancy trends, ADR realization, capital allocation policy, and debt maturation risk going forward.
Key Performance Indicators
QoQ: -13.20% | YoY:-29.30%
QoQ: -14.07% | YoY:-4.59%
QoQ: -18.29% | YoY:-8.75%
QoQ: -17.16% | YoY:-3.45%
Key Insights
Revenue: $2.867B in Q3 2024, up 7.26% YoY, down 2.85% QoQ. Gross Profit: $789M, gross margin 27.52% (YoY margin change negative; QoQ decline of 13.20%). Operating Income: $623M, operating margin 21.73% (YoY -4.59%, QoQ -14.07%). Net Income: $344M, net margin 11.999% (YoY -8.75%, QoQ -18.29%). EPS: $1.40 (diluted $1.38), YoY -3.45%, QoQ -17.16%. EBITDA: $668M, EBITDA margin 23.30%. Operating cash flow: $664M; free cash flow: $617M. Cash at end of period: $1.655B; cash flow from operations: $664M;...
Financial Highlights
Revenue: $2.867B in Q3 2024, up 7.26% YoY, down 2.85% QoQ. Gross Profit: $789M, gross margin 27.52% (YoY margin change negative; QoQ decline of 13.20%). Operating Income: $623M, operating margin 21.73% (YoY -4.59%, QoQ -14.07%). Net Income: $344M, net margin 11.999% (YoY -8.75%, QoQ -18.29%). EPS: $1.40 (diluted $1.38), YoY -3.45%, QoQ -17.16%. EBITDA: $668M, EBITDA margin 23.30%. Operating cash flow: $664M; free cash flow: $617M. Cash at end of period: $1.655B; cash flow from operations: $664M; capex: $47M; cash returned to capital via debt repayments ($986M) and share repurchases ($725M); dividends paid: $37M. Balance sheet highlights: total assets $16.689B; total liabilities $20.119B; total stockholders’ equity $(3.470)B; cash and cash equivalents $1.580B; total debt $11.962B; net debt $10.382B. Key leverage and profitability indicators reflect a high-leverage, asset-light hospitality model with a large goodwill/intangible base (Goodwill and Intangibles: $11.478B). Revenue and margin metrics are favorable relative to some peers but debt/load remains a critical risk factor.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.87B |
7.26% |
-2.85% |
| Gross Profit |
789.00M |
-29.30% |
-13.20% |
| Operating Income |
623.00M |
-4.59% |
-14.07% |
| Net Income |
344.00M |
-8.75% |
-18.29% |
| EPS |
1.40 |
-3.45% |
-17.16% |
Key Financial Ratios
operatingProfitMargin
21.8%
operatingCashFlowPerShare
$2.7
freeCashFlowPerShare
$2.63
dividendPayoutRatio
10.8%
Management Commentary
No earnings call transcript data provided for QQ3 2024; unable to extract management quotes or themes. If you provide the transcript text, I can extract key insights by theme (strategy, operations, market conditions) and offer direct quotes with context.
Forward Guidance
Formal forward guidance for QQ3 2024 is not included in the dataset. In a lodging cycle, investors should monitor: (1) occupancy and ADR trends across key geographies (North America, EMEA, Asia-Pac); (2) mix shift toward management/franchise revenue versus owned properties, which typically expands margins and cash flow stability; (3) commodity and labor cost inflation versus pricing power; (4) debt maturity profile and refinancing risk given elevated leverage; (5) capital allocation decisions (deleveraging via free cash flow versus opportunistic buybacks). Given Hilton’s substantial FCF and ongoing cash generation (operating cash flow of $664M in the quarter and $617M in free cash flow), the company has the capacity to accelerate deleveraging if demand environments remain constructive and if it prioritizes balance-sheet repair over aggressive share repurchases. Investors should track quarterly occupancy/ADR, loyalty program growth, property pipeline, and debt maturity timelines to gauge the achievability of strategic financial goals.