Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Hilton Worldwide Holdings Inc., consolidated income statement

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	2,370)	2,068)	1,493)	945)	1,681)
Base and other management fees	342)	294)	176)	123)	332)
Incentive management fees	274)	196)	98)	38)	230)
Owned and leased hotels	1,244)	1,076)	598)	421)	1,422)
Other revenues	178)	102)	79)	73)	101)
Other revenues from managed and franchised properties	5,827)	5,037)	3,344)	2,707)	5,686)
Revenues	10,235)	8,773)	5,788)	4,307)	9,452)
Owned and leased hotels	(1,141)	(999)	(679)	(620)	(1,254)
Depreciation and amortization	(147)	(162)	(188)	(331)	(346)
General and administrative	(408)	(382)	(405)	(311)	(441)
Reorganization costs	—)	—)	—)	(41)	—)
Impairment losses	(38)	—)	—)	(258)	—)
Other expenses	(112)	(60)	(45)	(60)	(72)
Other expenses from managed and franchised properties	(6,164)	(5,076)	(3,454)	(3,104)	(5,763)
Expenses	(8,010)	(6,679)	(4,771)	(4,725)	(7,876)
Gain (loss) on sales of assets, net	—)	—)	(7)	—)	81)
Operating income (loss)	2,225)	2,094)	1,010)	(418)	1,657)
Interest expense	(464)	(415)	(397)	(429)	(414)
Gain (loss) on foreign currency transactions	(16)	5)	(7)	(27)	(2)
Loss on debt extinguishment	—)	—)	(69)	(48)	—)
Loss on investments in unconsolidated affiliate	(92)	—)	—)	—)	—)
Other non-operating income (loss), net	39)	50)	23)	(2)	3)
Income (loss) before income taxes	1,692)	1,734)	560)	(924)	1,244)
Income tax (expense) benefit	(541)	(477)	(153)	204)	(358)
Net income (loss)	1,151)	1,257)	407)	(720)	886)
Net (income) loss attributable to noncontrolling interests	(10)	(2)	3)	5)	(5)
Net income (loss) attributable to Hilton stockholders	1,141)	1,255)	410)	(715)	881)

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 financial data presents several noteworthy trends across the five-year period from 2019 to 2023.

Revenue Streams: Overall revenues demonstrated a significant decline in 2020, dropping from $9,452 million in 2019 to $4,307 million, reflecting substantial disruption. However, a recovery trend is evident thereafter, with revenues increasing to $5,788 million in 2021, $8,773 million in 2022, and reaching $10,235 million in 2023, surpassing the pre-pandemic level.; Franchise and licensing fees showed a dip in 2020 to $945 million from $1,681 million in 2019, followed by consistent growth each year to $2,370 million in 2023. Other management fee categories—base and other management fees, and incentive management fees—reflected similar patterns, with sharp decreases in 2020 and recovery along with growth through to 2023.; Other revenues from managed and franchised properties halved in 2020 compared to 2019 but steadily rebounded, reaching the highest value of $5,827 million in 2023, highlighting the strong resurgence of managed and franchised business operations.
Expenses: Total expenses declined markedly in 2020 to $4,725 million from $7,876 million in 2019, corresponding with the decrease in operational activity. Expenses then stabilized somewhat in 2021 but increased substantially in 2022 and 2023, reaching $8,010 million, which aligns with the increased operational scale and revenue recovery.; Owned and leased hotel expenses followed a similar pattern, dropping steeply in 2020 before escalating each subsequent year to reach $1,141 million in 2023. Depreciation and amortization expenses decreased over time, from $346 million in 2019 to $147 million in 2023, suggesting possible asset disposals or lower capital expenditures.; General and administrative expenses declined in 2020 but remained relatively stable through 2023. Impairment losses were significant only in 2020 ($258 million) and smaller in 2023 ($38 million), indicating occasional asset write-downs.
Profitability: Operating income turned negative in 2020 (-$418 million) reflecting the impact of the downturn but recovered strongly afterward, exceeding pre-pandemic levels with $2,225 million in 2023.; Income before taxes was negative in 2020 (-$924 million), rebounded to $560 million in 2021, and increased substantially in the following years, reaching $1,692 million in 2023.; Net income attributable to stockholders mirrored this trend with a loss in 2020 (-$715 million) followed by recovery to positive figures from 2021 onwards, peaking at $1,255 million in 2022 before slightly decreasing to $1,141 million in 2023.
Other Observations: Interest expense remained relatively stable, ranging between $397 million and $464 million annually, reflecting consistent debt servicing costs.; Non-operating income and expenses fluctuated, with occasional losses related to foreign currency transactions and debt extinguishment costs in some years.; The period featured no recurring reorganization costs aside from a charge in 2020, indicating a relatively stable operational structure outside of the pandemic effect year.

In summary, the financial data demonstrates a sharp negative impact during 2020, followed by a robust multi-year recovery across revenues, operating income, and net income. The company successfully managed expense levels during the downturn and expanded operations strongly in subsequent years, which is reflected in increasing fee revenues and franchising-related income. Profitability metrics recovered fully and exceeded pre-pandemic levels by 2022 and 2023. The data indicates resilience and operational scalability post the 2020 downturn.

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Hilton Worldwide Holdings Inc. (NYSE:HLT)

Income Statement