Name: Hilton Worldwide Holdings Inc. (NYSE:HLT) | Analysis of Revenues
Creator: Stock Analysis on Net

Analysis of Revenues

Revenues as Reported

Revenues as Reported

Hilton Worldwide Holdings Inc., income statement, revenues

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Franchise and licensing fees	2,388)	2,085)	1,508)	956)	1,691)
Base and other management fees	393)	338)	203)	144)	394)
Incentive management fees	274)	196)	98)	38)	230)
Management and franchise	3,055)	2,619)	1,809)	1,138)	2,315)
Ownership	1,244)	1,076)	598)	421)	1,422)
Segment revenues	4,299)	3,695)	2,407)	1,559)	3,737)
Amortization of contract acquisition costs	(43)	(38)	(32)	(29)	(29)
Other revenues	178)	102)	79)	73)	101)
Other revenues from managed and franchised properties	5,827)	5,037)	3,344)	2,707)	5,686)
Intersegment fees elimination	(26)	(23)	(10)	(3)	(43)
Revenues	10,235)	8,773)	5,788)	4,307)	9,452)

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).

Revenue Trends Overview: The total revenues demonstrate a marked recovery and growth trajectory from 2019 through 2023. Following a significant decline in 2020, revenues have increased steadily each subsequent year, surpassing the 2019 level by 2023.
Franchise and Licensing Fees: These fees experienced a steep decline in 2020, dropping from 1691 million USD in 2019 to 956 million USD. However, a robust recovery ensued in 2021, with consistent increases through 2023, reaching 2388 million USD, indicating strong franchise growth and renewed licensing activity.
Base and Other Management Fees: The base and other management fees diminished significantly in 2020, hitting the lowest point at 144 million USD, followed by a gradual upward trend in the following years. The 2023 figure of 393 million USD nearly matches the 2019 level, reflecting a recovery in management services.
Incentive Management Fees: Incentive management fees saw a dramatic drop in 2020, from 230 million USD to 38 million USD. Thereafter, they demonstrated a strong upward trend, nearly reaching pre-pandemic levels by 2023 at 274 million USD, indicating improved performance incentives aligned with better operational results.
Combined Management and Franchise Revenues: The composite figure for management and franchise-related revenues declined sharply in 2020 but recovered significantly over the subsequent years, ending at 3055 million USD in 2023, which is above the 2019 amount. This underlines resilience and growth in core service areas.
Ownership Revenues: Ownership revenues decreased substantially in 2020 to 421 million USD from 1422 million USD in 2019, followed by gradual recovery, reaching 1244 million USD in 2023. Although still below the 2019 level, the consistent growth suggests improving direct property income.
Segment Revenues: Segment revenues contracted sharply in 2020 but exhibited steady recovery throughout the following years, reaching 4299 million USD in 2023, higher than in 2019. This pattern aligns with improved operational performance and market conditions.
Amortization of Contract Acquisition Costs: This expense category increased modestly in magnitude, from -29 million USD in 2019 and 2020 to -43 million USD in 2023. The increasing amortization suggests ongoing investment in contract acquisitions, possibly supporting future growth.
Other Revenues: Other revenues experienced a decline in 2020 but saw a rebound by 2023, rising to 178 million USD, which exceeds the 2019 figure. This indicates diversification in revenue streams or enhanced ancillary earnings.
Other Revenues from Managed and Franchised Properties: There was a significant downturn in 2020 in other revenues from managed and franchised properties, dropping by over 50%. Recovery was notable in subsequent years, with 2023 revenues of 5827 million USD surpassing pre-pandemic levels. This reflects revitalization in franchise and management operations.
Intersegment Fees Elimination: The intersegment fees elimination amounts remain relatively small and negative, increasing slightly in magnitude over time, indicating minor adjustments in consolidation processes.
Total Revenues: Total revenues more than halved in 2020 compared to 2019, dropping from 9452 million USD to 4307 million USD. Since then, a clear recovery trend is visible, with revenues reaching 10235 million USD in 2023, surpassing the pre-pandemic figure by approximately 8%. This exhibits strong overall business recovery and expansion.

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