Analysis of Geographic Areas
Hilton Worldwide Holdings Inc. operates in 2 regions: U.S. and All other.
Area Asset Turnover
Hilton Worldwide Holdings Inc., asset turnover by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. | 43.64 | 62.59 | 42.54 | 28.07 | 51.19 |
| All other | 11.30 | 10.80 | 5.30 | 3.28 | 8.63 |
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 asset turnover ratios for both domestic and international segments exhibited significant volatility between 2019 and 2023, characterized by a sharp contraction in 2020 followed by a multi-year recovery period. A consistent and substantial gap in asset utilization efficiency persists between the U.S. market and all other geographic areas.
- U.S. Asset Turnover
- The U.S. segment experienced a significant decline in 2020, with the ratio dropping from 51.19 to 28.07. A strong recovery followed, peaking in 2022 at 62.59, the highest value in the observed period. However, a subsequent contraction occurred in 2023, with the ratio decreasing to 43.64, indicating a reduction in the efficiency of generating revenue from assets relative to the 2022 peak.
- International Asset Turnover (All Other)
- International operations followed a similar downward trajectory in 2020, reaching a low of 3.28 from a 2019 level of 8.63. Unlike the U.S. market, the international segment demonstrated a steady and consistent upward trend from 2021 through 2023, ending the period at 11.30. This indicates a gradual and sustained improvement in asset productivity outside the United States.
- Comparative Geographic Performance
- A stark disparity in asset turnover remains between the two geographic categories. The U.S. ratio consistently outperformed the international ratio by a wide margin throughout the five-year period. While the U.S. segment shows higher volatility and higher peaks, the international segment exhibits a more stable recovery path since 2020, though it continues to operate at a significantly lower turnover rate than the domestic market.
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Area Asset Turnover: U.S.
Hilton Worldwide Holdings Inc.; U.S.; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 7,986) | 6,947) | 4,765) | 3,593) | 7,423) |
| Property and equipment, net | 183) | 111) | 112) | 128) | 145) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 43.64 | 62.59 | 42.54 | 28.07 | 51.19 |
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).
1 2023 Calculation
Area asset turnover = Revenues ÷ Property and equipment, net
= 7,986 ÷ 183 = 43.64
The financial performance from 2019 to 2023 is characterized by a significant recovery in revenues and fluctuating asset efficiency. While revenues surpassed pre-pandemic levels by the end of the period, the area asset turnover ratio exhibited volatility, peaking in 2022 before moderating in 2023 due to increased capital expenditure.
- Revenue Performance
- A sharp contraction in revenues is observed in 2020, where figures fell from 7,423 million to 3,593 million. This was followed by a consistent three-year recovery trend, with revenues climbing to 4,765 million in 2021, 6,947 million in 2022, and reaching a period high of 7,986 million by December 31, 2023.
- Net Property and Equipment Trends
- The asset base remained relatively lean between 2019 and 2022, with net property and equipment decreasing from 145 million to 111 million. A significant reversal occurred in 2023, as assets increased to 183 million, indicating a substantial reinvestment in fixed assets.
- Area Asset Turnover Analysis
- The area asset turnover ratio mirrors the volatility of revenues, dropping to 28.07 in 2020. A peak efficiency of 62.59 was reached in 2022, resulting from the convergence of recovering revenues and a minimized asset base. In 2023, the ratio declined to 43.64; although revenues continued to grow, the sharp increase in property and equipment net values expanded the asset base, thereby lowering the overall turnover ratio.
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Area Asset Turnover: All other
Hilton Worldwide Holdings Inc.; All other; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 2,249) | 1,826) | 1,023) | 714) | 2,029) |
| Property and equipment, net | 199) | 169) | 193) | 218) | 235) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 11.30 | 10.80 | 5.30 | 3.28 | 8.63 |
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).
1 2023 Calculation
Area asset turnover = Revenues ÷ Property and equipment, net
= 2,249 ÷ 199 = 11.30
The financial performance from 2019 to 2023 is characterized by a significant V-shaped recovery in revenue generation and a substantial increase in asset utilization efficiency. While a severe contraction occurred in 2020, the subsequent trajectory indicates a strong rebound that surpassed pre-pandemic levels by the end of the period.
- Revenue Trajectory
- Revenues experienced a sharp decline in 2020, falling from US$ 2,029 million to US$ 714 million. A consistent recovery followed, with revenues rising to US$ 1,023 million in 2021, US$ 1,826 million in 2022, and peaking at US$ 2,249 million by December 31, 2023. This represents a comprehensive recovery and an expansion of top-line growth relative to the 2019 baseline.
- Asset Base Dynamics
- Net property and equipment showed a steady downward trend for several consecutive years, decreasing from US$ 235 million in 2019 to a low of US$ 169 million in 2022. A slight increase was observed in 2023, with the value rising to US$ 199 million, suggesting a period of strategic asset reduction or depreciation followed by a modest return to investment.
- Area Asset Turnover Analysis
- The area asset turnover ratio mirrored the volatility of revenues, dropping from 8.63 in 2019 to 3.28 in 2020. However, the ratio grew aggressively during the recovery phase, reaching 10.80 in 2022 and 11.30 in 2023. This trend demonstrates a significant increase in operational efficiency, as the company generated substantially higher revenues using a leaner net asset base than was present in 2019.
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Property and equipment, net
Hilton Worldwide Holdings Inc., property and equipment, net by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. | 183) | 111) | 112) | 128) | 145) |
| All other | 199) | 169) | 193) | 218) | 235) |
| Total | 382) | 280) | 305) | 346) | 380) |
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 net property and equipment values exhibited a consistent downward trajectory from 2019 through 2022, followed by a significant recovery in 2023. This pattern of contraction and subsequent expansion is evident across both domestic and international geographic segments, with the total asset value returning to 2019 levels by the end of the 2023 fiscal year.
- U.S. Geographic Segment
- A period of steady depreciation or divestment is observed from 2019 to 2022, with net values decreasing from 145 million USD to 111 million USD. However, 2023 marked a sharp reversal, with assets increasing to 183 million USD, representing a 64.8% increase over the previous year and surpassing the initial 2019 baseline.
- International Geographic Segment (All Other)
- The non-U.S. segment followed a similar downward trend between 2019 and 2022, falling from 235 million USD to 169 million USD. A recovery occurred in 2023, with the value rising to 199 million USD, although this remains below the 2019 peak.
- Aggregate Net Property and Equipment
- The total net property and equipment declined from 380 million USD in 2019 to a minimum of 280 million USD in 2022. The subsequent rise to 382 million USD in 2023 indicates a full restoration of the asset base to pre-2020 levels, driven primarily by the accelerated growth in the U.S. segment.
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Revenues
Hilton Worldwide Holdings Inc., revenues by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. | 7,986) | 6,947) | 4,765) | 3,593) | 7,423) |
| All other | 2,249) | 1,826) | 1,023) | 714) | 2,029) |
| Total | 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).
The revenue trajectory from 2019 to 2023 is characterized by a severe contraction followed by a sustained recovery, with total revenues eventually surpassing pre-pandemic levels. Total annual revenue declined from 9,452 million USD in 2019 to 4,307 million USD in 2020, representing a decrease of approximately 54.4%. However, a consistent upward trend followed, culminating in a peak of 10,235 million USD by the end of 2023, reflecting a total growth of 8.3% relative to the 2019 baseline.
- Domestic Revenue Performance
- U.S. revenues experienced a significant decline in 2020, dropping to 3,593 million USD from 7,423 million USD in 2019. This segment demonstrated a steady recovery over the subsequent three years. By 2022, domestic revenues had nearly returned to baseline levels at 6,947 million USD, and by 2023, they reached 7,986 million USD, marking an overall increase of 7.5% compared to 2019.
- International Revenue Performance
- The "All other" geographic segment suffered a more pronounced contraction in 2020 than the domestic market, falling from 2,029 million USD to 714 million USD, a decrease of approximately 64.8%. The recovery in this segment was more aggressive in percentage terms, with a sharp increase in 2022 and a final value of 2,249 million USD in 2023. This represents a growth of 10.8% over 2019 levels, suggesting a slightly stronger post-pandemic rebound in international markets compared to the U.S. market.
- Geographic Revenue Distribution
- The revenue mix remained heavily weighted toward the U.S. market throughout the period. In 2019, the U.S. accounted for approximately 78.5% of total revenue. This concentration increased to 83.4% during the 2020 downturn, indicating that international revenues were more volatile. By 2023, the distribution normalized to 78.0% for the U.S. and 22.0% for all other regions, indicating a return to the original geographic revenue balance with a slight increase in the proportional contribution of international markets.
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