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

Analysis of Revenues

Revenues as Reported

Revenues as Reported

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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).

Total revenues exhibited a significant V-shaped recovery pattern between 2019 and 2023. After a sharp decline in 2020, where revenues fell from 9,452 million US$ to 4,307 million US$, there was a consistent year-over-year increase, culminating in a peak of 10,235 million US$ by the end of 2023. This represents a total growth of approximately 8.3% relative to pre-pandemic levels.

The recovery was driven by a combination of growth in management and franchise fees and a strong rebound in revenues from managed and franchised properties. While most revenue streams have surpassed their 2019 benchmarks, the pace of recovery varied across different business segments.

Management and Franchise Revenue Trends: Revenues from management and franchise operations showed strong resilience and expansion. This segment grew from 2,315 million US$ in 2019 to 3,055 million US$ in 2023. The primary driver was franchise and licensing fees, which increased from 1,691 million US$ in 2019 to 2,388 million US$ in 2023, indicating a successful expansion of the franchise network or an increase in fee structures.
Ownership Revenue Analysis: Ownership revenues experienced the most severe contraction and a slower recovery relative to other segments. This figure dropped from 1,422 million US$ in 2019 to 421 million US$ in 2020. By 2023, ownership revenues reached ,1244 million US$, which remains below the 2019 baseline, suggesting a shift in the revenue mix away from direct ownership toward a more asset-light model.
Performance-Based Fee Volatility: Incentive management fees demonstrated high sensitivity to market conditions. These fees collapsed from 230 million US$ in 2019 to a low of 38 million US$ in 2020. The subsequent recovery was steady, reaching 274 million US$ in 2023, which exceeds the initial 2019 levels and indicates improved operational performance across managed properties.
Other Property Revenue Streams: Other revenues from managed and franchised properties constitute the largest portion of the total revenue. This stream fell from 5,686 million US$ in 2019 to 2,707 million US$ in 2020, before rebounding to 5,827 million US$ in 2023. The recovery of this specific line item was critical in restoring total corporate revenues to record levels.

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