Analysis of Debt
Total Debt (Carrying Amount)
Hilton Worldwide Holdings Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The total long-term debt carrying amount experienced significant volatility between 2019 and 2023, characterized by a sharp increase in 2020 followed by a correction and a period of relative stability.
- Total Debt Trajectory
- Total long-term debt rose from US$ 7,993 million in 2019 to a peak of US$ 10,487 million in 2020, representing a substantial increase in leverage. This peak was followed by a reduction to US$ 8,766 million in 2021 and a negligible change in 2022 to US$ 8,747 million. By December 31, 2023, the total carrying amount increased again to US$ 9,196 million.
- Long-Term Debt Composition
- The primary driver of the overall debt trend is the long-term debt excluding current maturities. This figure peaked at US$ 10,431 million in 2020 before descending to US$ 8,712 million in 2021. The level remained nearly flat in 2022 at US$ 8,708 million and rose to US$ 9,157 million by the end of 2023, indicating a consistent reliance on long-term financing structures.
- Analysis of Current Maturities
- Current maturities of long-term debt represent a minimal portion of the total debt portfolio. A moderate increase was observed between 2019 and 2020, moving from US$ 37 million to US$ 56 million, with a slight decrease to US$ 54 million in 2021. For the years 2022 and 2023, these obligations stabilized at US$ 39 million, suggesting a managed approach to short-term debt obligations.
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Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Long-term debt, excluding finance lease liabilities and other debt of consolidated VIEs | 8,760) |
| Finance lease liabilities | 139) |
| Other debt of consolidated VIEs | 9) |
| Total long-term debt (fair value) | 8,908) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.97 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on long-term debt: 5.40%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 7.21% | 1,000) | 72) | |
| 7.46% | 2,119) | 158) | |
| 5.38% | 500) | 27) | |
| 4.88% | 600) | 29) | |
| 5.75% | 500) | 29) | |
| 3.75% | 800) | 30) | |
| 4.88% | 1,000) | 49) | |
| 4.00% | 1,100) | 44) | |
| 3.62% | 1,500) | 54) | |
| 6.01% | 139) | 8) | |
| 1.01% | 9) | —) | |
| Total | 9,267) | 501) | |
| 5.40% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 501 ÷ 9,267 = 5.40%