by Lacey Pfalz
Last updated: 9:15 AM ET, Thu February 6, 2025
Hilton shared its 2025 outlook with the world on Thursday, February 6, and while it shows a slower growth than it enjoyed in 2024, lowered its earnings per share valuation due to a softening leisure travel demand expected due to growing financial hardship.
The hotel giant saw a banner year in 2024, with 11 percent year-over-year growth in adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization. It also saw net unit growth of 7.8 percent and an adjusted diluted EPS of $7.12, a 15 percent increase from 2023.
2025 is looking to be a bit different, however, with a slower growth pattern that informed Hilton to lower its EPS predictions: while Reuters reported financial analysts expected an EPS of $8.02 this year, Hilton predicted a full-year diluted EPS ranging between $7.45 and $7.56.
Hilton also predicts RevPAR to grow two to three percent this year, with net unit growth between six and seven percent. Adjusted EBITDA is expected to be between $3.7 billion and $3.74 billion, still over 2024’s $3.43 billion.
"We are pleased to report a strong fourth quarter, with both top and bottom line results exceeding our expectations,” said Christopher J. Nassetta, President & Chief Executive Officer of Hilton. “All segments drove RevPAR outperformance, with strong trends in leisure occupancy, as well as continued growth in business transient and group results, and we expect favorable trends to continue into 2025."
"We also delivered the highest number of approvals, construction starts and openings in our history in 2024, helping us achieve net unit growth of 7.3 percent," Nassetta continued. "With a development pipeline of nearly half a million rooms, we are confident that we are well positioned to deliver net unit growth between 6.0 percent and 7.0 percent in 2025."
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