Stock Analysis on Net
Stock Analysis on Net

Hilton Worldwide Holdings Inc. (NYSE:HLT)

This company has been moved to the archive! The financial data has not been updated since August 7, 2024.

Common-Size Income Statement 

Hilton Worldwide Holdings Inc., common-size consolidated income statement

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Franchise and licensing fees 23.16 23.57 25.79 21.94 17.78
Base and other management fees 3.34 3.35 3.04 2.86 3.51
Incentive management fees 2.68 2.23 1.69 0.88 2.43
Owned and leased hotels 12.15 12.26 10.33 9.77 15.04
Other revenues 1.74 1.16 1.36 1.69 1.07
Other revenues from managed and franchised properties 56.93 57.41 57.77 62.85 60.16
Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Owned and leased hotels -11.15 -11.39 -11.73 -14.40 -13.27
Depreciation and amortization -1.44 -1.85 -3.25 -7.69 -3.66
General and administrative -3.99 -4.35 -7.00 -7.22 -4.67
Reorganization costs 0.00 0.00 0.00 -0.95 0.00
Impairment losses -0.37 0.00 0.00 -5.99 0.00
Other expenses -1.09 -0.68 -0.78 -1.39 -0.76
Other expenses from managed and franchised properties -60.22 -57.86 -59.68 -72.07 -60.97
Expenses -78.26% -76.13% -82.43% -109.71% -83.33%
Gain (loss) on sales of assets, net 0.00 0.00 -0.12 0.00 0.86
Operating income (loss) 21.74% 23.87% 17.45% -9.71% 17.53%
Interest expense -4.53 -4.73 -6.86 -9.96 -4.38
Gain (loss) on foreign currency transactions -0.16 0.06 -0.12 -0.63 -0.02
Loss on debt extinguishment 0.00 0.00 -1.19 -1.11 0.00
Loss on investments in unconsolidated affiliate -0.90 0.00 0.00 0.00 0.00
Other non-operating income (loss), net 0.38 0.57 0.40 -0.05 0.03
Income (loss) before income taxes 16.53% 19.77% 9.68% -21.45% 13.16%
Income tax (expense) benefit -5.29 -5.44 -2.64 4.74 -3.79
Net income (loss) 11.25% 14.33% 7.03% -16.72% 9.37%
Net (income) loss attributable to noncontrolling interests -0.10 -0.02 0.05 0.12 -0.05
Net income (loss) attributable to Hilton stockholders 11.15% 14.31% 7.08% -16.60% 9.32%

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 Composition
The proportion of franchise and licensing fees relative to revenues demonstrates an upward trend from 17.78% in 2019 to a peak of 25.79% in 2021, followed by a slight decline to approximately 23.16% in 2023. Base and other management fees as a portion of revenues experienced a slight decrease from 3.51% in 2019 to 2.86% in 2020, with a gradual recovery to around 3.34% by 2023. Incentive management fees declined sharply from 2.43% in 2019 to 0.88% in 2020, but then steadily increased through 2023 to 2.68%. Contributions from owned and leased hotels as a percentage of revenues fell significantly in 2020 to 9.77% from 15.04% in 2019, but showed a moderate recovery stabilizing near 12% in the subsequent years. The category of other revenues displayed variability, peaking at 1.74% in 2023 after a low of 1.07% in 2019. Other revenues derived from managed and franchised properties continued to represent the largest revenue segment, diminishing slightly from 60.16% in 2019 to just under 57% by 2023.
Expense Structure
Overall expenses as a percentage of revenues witnessed a sharp increase in 2020 to over 109%, reflecting significant cost pressures or extraordinary charges during that year. They then reverted to a normalized range between approximately 76% and 78% from 2022 onward. Specific expense lines related to owned and leased hotels showed persistent negative ratios, though slightly improving from -13.27% in 2019 to -11.15% in 2023. Depreciation and amortization expenses spiked to -7.69% in 2020 but decreased steadily thereafter to -1.44% by 2023. General and administrative expenses also rose from -4.67% in 2019 to a peak near -7.22% in 2020, followed by a marked reduction to around -4% in recent years. Other expenses fluctuated but increased somewhat during the latest period to -1.09%. Other expenses from managed and franchised properties displayed the greatest volatility and magnitude, peaking at -72.07% in 2020 before declining to approximately -60% more recently.
Profitability Indicators
Operating income percentage bears evidence of the challenging environment in 2020, showing a loss of -9.71%. However, it rebounded robustly to 17.45% in 2021, further improving to 23.87% in 2022 before a slight dip to 21.74% in 2023. Interest expense more than doubled as a percentage of revenues in 2020 to -9.96%, before gradually decreasing in subsequent years back to levels slightly below 2019 figures. Non-operating gains and losses, including foreign currency transactions and loss on debt extinguishment, contributed to minor fluctuations but did not exhibit significant trends. Income before income taxes followed a similar pattern to operating income, with a substantial negative impact in 2020 (-21.45%) and a return to positive territory from 2021 onward. Income tax expenses shifted from a beneficial rate in 2020 (4.74%) likely due to tax credits or losses, to consistent expenses around -5% in the following years. The net income attributable to stockholders reflected these patterns, showing losses in 2020 (-16.6%) but recovering to double-digit positive returns by 2022 (14.31%) and stabilizing around 11.15% in 2023.