MCLEAN, Va. – Hilton (NYSE: HLT) today marked a decade of fast-paced growth since its initial public offering (IPO) on the New York Stock Exchange on Dec. 11, 2013. Over the last 10 years, the more than century-old company has nearly doubled its global property and room count, more than doubled its brand portfolio, more than quadrupled the number of Hilton Honors members worldwide, and delivered total shareholder returns of approximately 330%* – outperforming major indices and industry averages – and was recently named the No. 1 World’s Best Workplace by Great Place to Work.
“Conrad Hilton built this company on the belief that we could be an engine of opportunity and a beacon of hope all around the world. Guided by that belief, we’ve dedicated more than the last decade to reigniting the company’s culture and executing on a growth strategy that enabled us to serve more guests, team members, owners, shareholders, and partners with our distinctive hospitality.”
After becoming the first hotel company listed on the New York Stock Exchange in 1946, Hilton was acquired by Blackstone Inc. in 2007, before becoming a public company again in 2013.
“The IPO was an important milestone in our company’s history,” said Kevin Jacobs, chief financial officer and president, global development, Hilton. “It signified the success of our roughly six-year transformation under Blackstone’s ownership as well as the beginning of a new era of growth and innovation for Hilton.”
Since the IPO, Hilton has delivered total shareholder returns of approximately 330%, outperforming the Dow Jones Index and S&P Index returns of roughly 185% and 210% respectively*. Hilton has also delivered total shareholder returns at more than double the S&P 500 Hotels, Resorts & Cruises average of approximately 150%*.
“Over the last decade, we have enhanced the resiliency of our model with the spin-offs of our timeshare business and the majority of our real estate, creating a capital-light, fee-based business,” Jacobs said. “We have also continued to strengthen our balance sheet and the power of our network effect. Our award-winning brands, satisfied owners, loyal guests, and a leading development pipeline continue to power Hilton’s performance.”
Today, the company’s expansive footprint of 22 brands and 7,400 properties is serving more guests than ever before, with nearly 200 million travelers staying at Hilton-branded hotels in 2022. Hilton Honors – the fastest-growing hotel loyalty program – has added more than 130 million members in 10 years to total more than 173 million members as of the third quarter. Additionally, nearly 90% of Hilton’s properties are franchised, allowing the company to continue to expand and diversify its ownership base.
Nassetta credits Hilton’s award-winning culture for the transformation. “From day one, our focus has always been culture first,” Nassetta said. “When you empower dedicated, hospitable and passionate people, amazing things can happen. Our team members are at the very core of Hilton’s success.”
Hilton was recently named the No. 1 World’s Best Workplace by Fortune and Great Place to Work, following eight consecutive years on the top 100 list. In 2023, Hilton was also named the Best Workplace for Women in the U.S. and the No. 1 Best Workplace in multiple countries, including Argentina, Austria, China, Dominican Republic, France, India, Italy, Peru, Portugal, Switzerland and Uruguay. In total, Hilton has been recognized on more than 450 Great Place to Work lists since 2016.
Hilton has also more than doubled its development pipeline since 2013, supported by strategic expansion into more than 30 new countries and territories. Today, Hilton has the largest pipeline of future hotel development in its history and more rooms under construction than any other hotel company. With 20% of all rooms under construction slated to be Hilton brands, the company’s under-construction market share is nearly four times the market share of existing supply.
“Hilton’s development pipeline is robust, laying out a remarkable path for our growth in the future,” Jacobs said. “Our next era of growth will be defined by Hilton’s ability to continue delivering reliable and friendly stay experiences, innovating to meet travelers’ evolving needs, and growing strategically to serve even more guests as they seek new travel experiences around the world.”
*Total Shareholder Return (TSR) calculated for the period Dec. 11, 2013-Nov. 30, 2023
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to the expectations regarding the performance of Hilton's business, future financial results, liquidity and capital resources and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "forecasts," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks inherent to the hospitality industry; macroeconomic factors beyond Hilton's control, such as inflation, changes in interest rates, challenges due to labor shortages or disputes and supply chain disruptions and recent events affecting the financial services industry; risks related to the impact of the COVID-19 pandemic; competition for hotel guests and management and franchise contracts; risks related to doing business with third-party hotel owners; performance of Hilton's information technology systems; growth of reservation channels outside of Hilton's system; risks of doing business outside of the U.S.; risks associated with conflicts in Eastern Europe and the Middle East and other geopolitical events; and Hilton's indebtedness. Additional factors that could cause Hilton's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I—Item 1A. Risk Factors" of Hilton's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which is filed with the Securities and Exchange Commission (the "SEC") and is accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in Hilton's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Hilton is a leading global hospitality company with a portfolio of 22 world-class brands comprising more than 7,500 properties and nearly 1.2 million rooms, in 126 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 3 billion guests in its more than 100-year history, was named the No. 1 World’s Best Workplace by Great Place to Work and Fortune and has been recognized as a global leader on the Dow Jones Sustainability Indices for seven consecutive years. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the more than 180 million members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on Facebook, Twitter, LinkedIn, Instagram and YouTube.