Hilton Worldwide (HLT) 23 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to the Hilton Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jill Chapman, Senior Vice President, Head of Development, Operations and Investor Relations.

You may begin.

Thank you, Chad. Quarter Call. Third Hilton's to XXXX Earnings Welcome

in Before that obligation update include our we today would speak those forward-looking statements statements. our or and remind today. you like to We indicated from revise discussions materially as Actual only could these we forward-looking made to results statements, forward-looking begin, statements. differ the expectations this of to morning will no undertake

please cause discussion the of the actual some section results our Risk see could of Form differ, a Factors For XX-K. filed factors to of recently that most

In measures addition, we'll refer this to certain non-GAAP on financial call.

find our GAAP financial earnings can website measures in and of release call our on today's You non-GAAP press at reconciliations discussed to ir.hilton.com. in

will the overview environment third discuss and review morning, for current operating quarter outlook. the company's President, provide then and an Chief This our Global Executive Nassetta, Chris Financial and of our results Jacobs, President the Kevin our and will Officer year. expectations Development, Officer, our Chief

Following be happy your take their remarks, we'll questions. to

And turn with over call to the pleased Chris. to I'm that,

today. Good Thank us for joining and thanks Jill. morning, everyone, you,

Our net third drive growth to quarter bottom of the solid performance. unit line helped as model results our business strength continued strong demonstrate

high and X,XXX hotels rooms We in our end Adjusted exceeded our RevPAR surpassed and quarter of company any our both adjusted in softer-than-expected EBITDA other opened guidance despite EPS than of hotel the performance. more the history system.

Honors quarter, members reached guest service the our increase Hilton also program, XXX and in loyalty. million industry-leading exceptional to We continued a milestone award-winning as brands

results. to Turning

businesses. slower with both ramp transient the Day, labor following X.X% RevPAR year-over-year, shifts disputes medium-sized Business below in quarter large small guidance weather increased and increased due calendar Labor our Third September and and across X% system-wide to ongoing range corporates growth in U.S. impacts, unfavorable RevPAR

events. to and than for was meetings with and by pandemic trends Group year-over-year, from Leisure post X% social demand both modestly RevPAR more corporate peaks. declining normalize led continue RevPAR strong

position for segments group in up grew year, the all slightly group and Adjusting For is we 'XX the up and the X.X% at double estimate just RevPAR 'XX quarter, holiday shifts, position full with quarter and second mid-teens. with increasing. softer than low calendar to in XX% digits systemwide

XXX basis, across adjusted business by quarter, group driven election Europe. fourth X%, quarter, in and the for and In and October transient favorable nearly U.S. weekday third basis expect driven strong driven transient points by pace, largely solid partially than disputes with an September's largely RevPAR continued the calendar solid On in increased shifts, offset bookings, is Weekdays recovery Continental group by leisure labor we versus business RevPAR up growth strength. trends more line ongoing performance tracking transient by the

meetings dose. driving and convention to grow of mix Company as longer percentage business a continue

growth quarter expectations, of and RevPAR growth year performance demonstrating Given expect fourth X%, year-to-date forecast XX%, of approximately resiliency X.X%, year business we model. of and our full continued full EBITDA adjusted the

X.X%. than Pacific We and hotel achieved including Turning We our in opening XXX net XXXth in unit at milestones the hotel quarter, our in rooms, the EMEA. hotel to opened growth record highest XX,XXX worldwide, our the marked in quarter. a hotels, more Asia totaling our and history X,XXXth the several in XXXth development of

in development doubled the continues to pipeline the than industry. in years, hotel its more has opened new and X XXXth which Suites, HomeX supply have in the last largest

newly under opening the expand new the lifestyle of our first X hotels acquired Graduate quarter, portfolio, openings Auburn number our and to a brand. Graduate Princeton, the including continue Graduate We in

Switzerland, the UAE, demonstrating and and industry-leading Canopy several of in brands delivering introduced Hampton also value Suites brands in markets strong Spark owners. Japan for around in new Embassy the Canada, our the We world, including in in

World. the exclusive destinations across our nearly Hotels sought-after unique Honors of welcome XX and countries, members experiences luxury even the different properties through book opportunities spanning We luxury more XXX with to These globe. agreement properties, Luxury provide Small

and industry. our openings hotel SLH the properties first have opened the the Spark. Including more for X,XXX existing a Spark than the luxury in and from property. momentum rooms XX% Spark accounted of continued we quarter luxury SLH by Conversions hotels in the properties, year the quarter, and now driven We have after in of XX addition just in now opened portfolios brand over supply one of largest its

larger Canada, the and Germany U.S. year. the in we open expect Spark's in boost space. hotels than the plans well end in opened international economy in Xx Austria premium for brand's has the us and we The of markets is supply, announced recently and its the growth now hotels continued Spark trajectory, U.K. positioning further and launches and existing to before pipeline to future

In year-over-year. up X% we our quarter, expanding rooms, XXX,XXX XX,XXX is the more to than rooms, signed pipeline which

pipeline Excluding our partnerships, second also the increased quarter. from

lifestyle XX the XX signed a the of across Curio, for than We deals record of momentum Greece, strength luxury accounted and and continued Conversions driven properties, the XX% signings Japan in Tapestry X and Curios. Spark quarter, UAE more the including and by in DoubleTree.

U.S. company, up more strong, construction, industry other share of half track hotel XX% rooms excluding remain we international accounting of acquisitions under XX%, nearly more partnerships. and to continue our under have is We than exceed pipeline construction supply. year-end markets. starts our meaningful prior share Approximately existing across both than for of and any and to Xx on growth remained starts with and by of the levels Construction

and XXXX. As and X.X% full activity, construction unit a X% net result to year X% continue the for to under pipeline strong of to expect of we X% our for growth

be for and award-winning our culture brands. continue to recognized We

we to Work, were and XX Place America adding XXX the by hospitality since named the XXXX. wins top Great in Latin Asia quarter, Great the #X than to Work the nearly workplace and During more to Awards world around Place

Brand #X That of also Hotel recently the XXXX Best We're and Companies on XXXX. Time's workplace proudly named list Magazine the People Care recognizes

we're our brands to the of we're about the we've members, with continue Overall, pleased performance achieved, an our be network our growth guests, excited to for and our our of the opportunity into future. and in very milestones engine full owners team quarter our and

to turn the for quarter full the more going our for a on for few year. Kevin and results our I'm the call to expectations over Now details

good Thanks, everyone. morning, Chris, and

X.X% recovery system-wide largely versus prior quarter, currency-neutral strong RevPAR a the international was group. During on by year grew driven continued Growth the comparable performance and and basis. in

our third lower franchise driven year-over-year. X% items. Adjusted X% fees EBITDA fee Outperformance million the corporate Management the and some year-over-year was up $XXX in of by range. timing end better-than-expected high grew growth, was non-RevPAR and exceeding expense guidance quarter,

was adjusted for items $X.XX. For the quarter, diluted earnings per share special

regional to performance. our Turning

RevPAR results comparable the X%, Americas year-over-year, by up Mexico. U.S., urban driven particularly in strong a RevPAR performance. by strong In quarter was quarter U.S. the driven markets, in X% Third third increased group outside of

Middle grew in RevPAR European year-over-year the Germany. the Riyadh. In gains by region, soccer X% Qatar and and Europe, In occupancy RevPAR key driven summer in X% France by increased year-over-year, championships including Africa in events, Olympics East and the led

Pacific In RevPAR increased X%, in quarter year-over-year. third region, in was strong RevPAR X% down led APAC India. performance the Asia by ex China

due international domestic quarter inbound in with travel affecting RevPAR results. declined disruptions comparisons, travel year-over-year X% typhoons limited to However, the and difficult negatively China

under quarter pipeline, approximately year-over-year the located the ended up with of those rooms with of in nearly construction. XX% approximately X% We U.S. outside development. to XXX,XXX half Turning rooms our and

to X.X%. full growth of unit year, X% expect we the For net

guidance. to Moving

the of to year-over-year. fourth quarter, RevPAR For X% growth system-wide X% expect we

We expect between for of diluted $XXX special between EBITDA and EPS items adjusted be and $X.XX. and $XXX million million to adjusted $X.XX

billion between between We items For $X.XXX $X.XX. adjusted incorporate to of XXXX, Please X% and guidance $X.XXX EPS expect do diluted and special forecast $X.XX future X.X%. we full EBITDA note forecast adjusted year our RevPAR ranges of of that billion. We repurchases. growth not share for

per during total capital the of dividend third of a million. $X.XX return. Moving share $XX a quarter on paid to cash We for

quarter. Our Board share a authorized in fourth the $X.XX of quarterly per also dividend

to and And found third earlier be shareholders than Year-to-date, we to for the the year, return our the billion. this we on $X release in morning. returned have results Further of form more details issued in expect quarter buybacks dividends. can $X.X earnings we full approximately billion

many would limit X We the may first can We question, have Chad, to we now our ask please. questions for any to like so as that This open question. like you possible, prepared would completes with we of line you our have. speak yourself to remarks. you as

the first be from Instructions] question And will Greff [Operator Joe with JPMorgan.

Back time do this or there, at what's of target X% for XXXX which long guess, in lot level somewhat need look I a different there? the X% in about a Do higher of next and ago drivers sit of feels to are year. EBITDA look reasons, RevPAR you your here the industry growth like Day, get for March When X% you different still at as versus range in Investor a today this getting to that to number you a that few XXXX $X.XX to gave RevPAR at in is than March? EBITDA words, achievable you past X% be other you billion.

it's a that's question. XXXX Yes, early tad a good getting to be Obviously, guidance. into

beginning As I that of -- give it. year. when do end will at we would the at sense next year-end high-level you know, of of we typically you report the But a

so sort a lots of things of reasonably, I But like end think budget have reasonably season, to I things, view up. I of I stages would are strong say we have early-ish of mean the most work I in a where do. will

XXXX, with about and start admit, longer the good I'd would I'm how in years. do macro, sort like to going I've about U.S. I close a of so view sort than say we doing feel rarely stronger to XX it. I've particularly on pretty the broadly here seen consensus we been And this for feel of maybe

the But of, our and view resiliency sort think, describe to is I that macro I word broadly, used think business. I

lot that of what has U.S. to do been obviously to that's in degree, to a is the consensus here in be very the -- U.S. economy the to word getting broad is the because has the on And it that and parts used been but think the there I view economy. think slowing a a other focus trying will I describe continue world, Fed

I it economic quite recession have year -- are positive be think, odds this will that the point, more at But low. remains is of next a for growth. that consensus resilient showing positive strong, The we'll And of I our and you that, think growth.

a lot view, generally again If I people, the you but look agree of the and talk I'm would that's I view. to with not view. at And an consensus economist,

as think to think what's a We drive feel I which thinking it. about about our obviously. business, macro, of be can bunch about we the backdrop, as XXXX, going good a So pretty

going think regions segments. and I add it think and the about sort of down I'll how punch bit then give line up, you by you break to and that's little when I'll a

to going look my I budget lot growth year our mean punchline same-store best season, think view. like in the this is a early a of is I point again, next that from is sense, year

Now would we'll I a XXXX. when up now, end think be there next I a think I we'll lot a from here say felt get at we'll we're saying point, year sitting bit But differently. it little like year, this

down you high a this I experiencing at year. pretty again, ends it regionally, the what I where to If up think break it's U.S. we're is -- that up think ends similar level,

it think a think stimulus China be there. easier if I I there's get comps lot you and in because in going Pacific, better are part look Asia to at of occurring will

lot disrupt China I be Kevin benefit. some suggested that third typhoons a a China remains And comments. think will benefits, in strong, in in better his in -- APAC quarter in year. as So and don't the to ex we will quite that's have we Japan weather particularly comp I China And And have see that. do China going a mean,

So I be think APAC will better.

it's be bit than will good little a EMEA think been. less I

mega I probably growth think very My of to it to world. it's terms still still regions lead the pack going is in in our be around will clear. the good, be guess RevPAR

saw So that it do a But there. see it's year. problem less I will growth not than be somewhat think this I we

a better. little And worse. when may you little be blend bit it APAC a same. about EMEA all bit the together, U.S.

up about think where end you I you kind are. of

I lot similar it's maybe again, of segments, again of If homogenizing stuff I'm it together. a you break nuance. think by a little But I a mean down bit with story,

good really think group to on I side, going see the you're to continue strength.

said year. the to we're in in next terms up position into our mid-teens low I going of

the over booking than supply extending good demand. And books. So not we half to business with really cross on because the more just the windows there's enough are we'll relative feel

So see pricing demand I in group both segment. to growth think you're the going and growth

see I of think I next think likely of the you're to think, transient, peaks business I business broadly, surpass will XXXX in grind I to of in demand think we place levels. prior in continue in going which transient terms terms be, pecking Again, second do growth. order year, will up. of

see will So you demand. increase in

anecdotal and and the you're have hard All again, continue business a pricing accounts of SMB and you see bit continue think, big from getting our little year, then will to And we're power that there. evidence most our to good to leisure, going suggests that, normalization. like this I

mean? that in of a flat have very even do inflation bit. is sort pricing means, but maybe solid all because believe think But is does down power. a continue demand like bit segments life, we'll down, What little the of particularly in here I to U.S., that high. That I still stubbornly again, to

again, a it you will like So year. look this when blend I all lot out, it think,

blend be will world segment, nice sort all of blend the you of I think I the described. a if balanced, what and be I of way just depending as pricing that it the But both said it -- all together. whole just amalgamates together, on will, demand

we time on But I got quarter, as feeling with lot a we is in And listen, budget our think every our, the And has this. world. atmospherics of everybody's down. quarterly and world around our overarching the spend business I consistent what just with head with whole the teams do season review said, of their pretty good. sort We just always did

Joe, to growth answering for rather unit pillar because really growth. higher I that, my solid. question, a have obviously mean, about thank last the And I'm but listen, we bunch. feel you pretty feel that's we'd the buster, We RevPAR always, good thing finish

feel have given have that. there. lot good we'll a momentum We very of got guidance some I'm we about that questions, area. We've sure in but more

which so would to growth, And here, needs algorithm think back question, is always say I X is Y your way about equal initial to I to we're it trying deliver plus the Z. always

am be and store same confident well very to algorithm XXXX. add need that So growth unit will And and up. for I alive

question from be the America And Merrill next Kelley of will Bank from Shaun Lynch.

given what talked and there kind development what obviously, more you your there? side, Can us -- underlying and next what Obviously, in, development Chris, might bound a starts could and of the year, bit on just worse, just walk really the on factor of kind of initial you just a be little better the of sort if could of or of bit assumption kind walk the of is how X% it could possibilities going -- little a RevPAR about your now environment maybe of be maybe what macro through outcomes us kind a be for about compelling, just what's X% expectation would through side. in like we range what little to the were improve? just to have bit lot remain

to to obviously, about him, X% X%. I'll offer we some good I development, think mean I do comments, feel, should and see so too. really Kevin runs I

obviously more macro. visibility the have We into that than

on view But good We got visibility. under as stuff a have that's based, described lot we a on construction. I consensus. macro of We've have

of We have conversion. momentum a lot on

clarification. I X.X%. points higher couple So sort way X% at a incorporating that's is this X% number is of the say the of One, would partnerships, that is in to it coming which just year's organic, why X% is than to not of

year. it of would be the is you about implied up up X/X. X/X would the where end out about if it partnerships, I take about By say we'll at That's we'll end in this way, conversions.

If the about partnerships you XX%. we're add in,

repeat don't, we to again, And get we that. but how to -- that's So it. expect

the conversions, the pipeline. for super year identified, the a is happening. it's other It's than granular meaning or it's everything in year analysis in Again,

LiveSmart in world, or it right around now year, could it year, to the And if softly next be or it's in one. with on may delivering a but pretty much deliver the it's or that place hard. going or XX now under And something next U.S., to in X really gets it's right so the still a got including be in days and you next maybe a where X construction brand There the sneak start next.

the like we of that. the stuff, So good in terms sense a a pipeline. have of a of those. Spark other, and sense we good of conversions, Because in they're Again, have new lot build

a those and So there's that conversions are -- then segment of unidentified.

conversion don't that. we risk really opportunities XXs We the delivering to very moved record about disproportionate been really good those world, performing done a because and any that. historically, on from brands more have well, track that's of X/X. of share at And Obviously, see our a have than X/X low up. taking that are We've around the really, and they've we're up numbers moving but

could what in said. lower space to intellectually just make right I of it end higher the is of say of ultimately at it think has be So conversion the or what to maybe sort range, like way the the because I

mean under needle to I don't more heck that there's year. maybe that's construction whole at a think the this the lot. end a I a But of move sneak going of few

think I the in it's than we're X/X conversions. that more

I It's I will around heck to our I little I give development saying there's happen think still X% a that's hope and think have possible. it X% a easy. not a of Kevin lot the possible. look we that that teams I'm bit range reason, that world and of not. work of make that's a for think do. a to We

really about range. feel that we good But

sort or range or the is worse that relative And of again, midpoint sort to so is more of do less. intellectually to of better conversions,

from question Stanley. Stephen from Grambling be will the And next Morgan

rates compared here and from just change a as I seen of follow-up started guess lending base? you any And fee in the have does per how come down loosened? commentary. a existing to the on I NUG guess has the mix in room construction, to have what's maybe pipeline development the

Yes. part take Steve. easier. the bit a Thanks, first I'll because it's second little

starting of better I environment. development day see they've I come path bit think haven't on you capital see a terms a can people things Rates come little the are down up a and to little in down, bit, front. think but a to free dramatically the

And we ask cycle, was spread bid what because is ownership, the of a and conversations had normal of which transactions. as just conversions. know, as lot for -- supports drive, And are about saying more I around Chris you actually you've wide of starting pretty lot to, part conversions had a on there's this you've think between change transactions

starting And starting to of see has think, activity led spreads, there, bit XX a in so so I little to, the thawing applications and We're or to see more bid-ask bodes we're things last that. like days which a which of in ownerships change on more well.

part, per really we're still what I largely complexion mix. your then fees room, And any delivering, we're if the same an the basis of is overall first seeing the what under think on you mean construction change. putting about and it we're not

not dramatic we're in mix. changes the seeing So

time. seeing obviously You're RevPAR growth over

seeing contracts on fees You're roll mark-to-market as over.

in continue we where vast is of majority in little a And development license the brands our bit. of actually get the to take price fees terms We fees. the highest

And fact, not will room. the over grow so per a when And in time. it in really change we're in you seeing all that put model, fees

Deutsche Carlo next from Bank. question The is from Santarelli

that kind kind of primary of Chris, you that. your of I being RevPAR just driver building the assume a 'XX looks on like lot 'XX. think would point

I for teens into of that what double XXXX. guys and and know we business transient you do or way of group said we sorry, pace leisure kind 'XX we on you're 'XX and have, low today? -- you kind about move the XXXX 'XX digits the and as based to currently believe How thinking interpret Given low

a and the think highest a you're say, -- harder rate. to have I comparable I a tried I'll you In click I going I see on don't growth growth. to little Yes. see the but I mean budget to yet. -- very balance we mean, But you're group, going cover it, don't it. would have see I number

for mean, heard talking X%. the or third up I like about quarter, we're you X% numbers

in growth that whole I will price at you and balanced, of world. you're rate kind And level group to think at of the going think segment, I between I be the said, occupancy. as be if between looking that between look and pretty occupancy

than balance, you're business mid-single Xs digits, if think that something at if being again, range, sort again, for and I one. the transient transient low leisure, is I in up the the of solving but I X, business in in in single with think think group think is more higher digits, ends in I that's a but

at think think think levels. I we think that. mean, way to year, don't Xs, is, trending which I backwards. low We I we're we're we'll flat. We going this of trading said didn't, backwards it's leisure, year, this this, again like it's And I similar something historical I don't go maybe sort then of but sort X, think over still

little of pricing And But is expectation, we'll so good as the you able be I inflationary this, still like. a But pretty and maybe said like in world, already bit. environment work my of parts say down particularly because would and have the pressures, a push to flat, rate I and lot demand bit be normalize a feel would even to you little power we you have the here. continue

of a would have lot me, about I right? think it. early, so but front again, a leisure budget I talked in say we don't we've it's And

I positive. think leisure not is much positive, but

say modestly would it's positive. like I So very very,

X I say, those here today, we're really that's of lot I feels put you I 'XX, of together, why this you at not I think where least awful that think ending far an when sitting that's And up like sort mean, finish when off things 'XX. it year.

from David Jefferies. Katz question And the from next is

across other bit little just or competition industry specific earlier because that there Can obviously you're are whatever insight mentioned you're are leather, more provide Is of some just key drivers doing getting Chris, obvious an you that? good than we euphemism? old-fashioned usual? the and observing outsized conversions. Or how amount carefully shoe on of you it's money a that Any

I think on philosophy this and teams team we because I gritty. his may listen, leather. is -- Kevin I we're anything think scrappy. I we're top doing like pretty granted. the Yes. time, mean, We're how the to say to are shoe partly he our for company a come the We over it's all want I leather. our don't do and shoe run mean, take pretty listen,

we So get our hustle.

else we're don't doing, built hustle. hustling. really our but So what We've know good everybody I is relationships. teams

So beneficial business, the as all we bringing a in lot going of which this over not particularly hugely they're bunch a new because into decades Spark time, to ago. of of folks be system, it, are saw with Hampton

and solid we ultimately performance. what with have looking job mean But done I which a really you're they really is people relationships good doing it, where and leads really driving what think for what I deals that are we've these to out. to is these the likely, short end, more no are be you're entering into real to XX. up end, pedantic. with are these But generally at short very relationships But XX-plus-year signing not way

conversions, of this right the people aggregate when all that these you that have make dollars they're signing billions even up for. investing they're they're they're that they a the got want development, of up, all but they've money, system signing to so when And for time up and confidence long signing going are to

is truth And our track really the good. is record so

brands Our performing well. really are

our ever Our is It's been. of than market it's highest share competitors. higher the significantly any

I compete. don't we mean say all time. same doesn't to have the the that so And

half winning on even don't we're, himself of global this market. that. Kevin deal. let every like, explain I'll whatever, For we only win the we though Why we deals are the cool -- X% why should why

period we getting scrappy, to charming, be. I for returns. performance owners investing half down performance. to is But with can be think darn comes be things But these can time think about and -- relationship to We able all or long gritty. because or in our And drive it ultimately business be of a the in this the ability over we it's deliver to are They're witty, us pretty hope good. end, we the money assets to

The Farley UBS. from next question be Robin from will

how In little your business leisure on do talk today? other or of you and wonder more Chris, visibility it visibility visibility in about been a have like kind feel transient would words, I what could compares if XXXX? you you to transient less have bit

could about then if for well. about guide. than comments the a in better non-RevPAR think EBITDA squeeze the would drove X also I there what love I then timing to just And hear benefit I Kevin there fees. on was And as

answer is darn incremental the have we the amount say is would you That I why a is in don't tremendous The most have give group, visibility. those we of pretty place Robin. statistics. is Thanks, sticky. obviously visibility we which business

have a people pent-up have long still of needs, over have time, they recently We found and span needs.

really good So we that. feel about

booked time, just in the and survey leisure what transient, saying which they booked to rationale haven't I leisure thinking, and next transient, they they then But it. a XX with transient, have gives all particularly happen groups But business us our mean, that us do, to to. We for talking But or others days limited year. I you data teams, is We that limited, XX all where to I it, transient, think I'm do them. senior Unlike will the of they're certainly sales business yet. our booked business anecdotally, visibility out. management our customers, we tells what haven't do

where And we have the then leisures, least the visibility future. into

Now the a the it business segments. else, next on of degree, goes anybody goes the to economy filibuster it lost my year, answer leisure in those you think a we to in obviously or lot reason view was so particularly with my whole as so I transient about relates started how not consensus and

the to we think economy. the why that's to has heck like always is going consensus So start of it with a do view, view happen in what a

business group it is short-term just the segments. not It's over immune as swings that not It's stickier. other to -- It is time immune as just the to it.

we -- better, I ago? So with our we might have so. it's that's do think X posts had better customers listening gotten than we have mean, about -- have years Yes, I

I the The booking in reality what's going terms same. visibility is we're of understanding at think better about on.

-- talked were if all you of under the credit on our that on then expectations, non-RevPAR-driven -- came of we fees, business. fees, the rate performance. the RevPAR was And reasons like sort purchasing the all business, for business, the Robin, we clearly, things above we with the think performance the in our overall Yes. the card in about if about German you in were If will, above algorithm, pleased non-RevPAR

about And about timing get timing, items then it say was were it, third and the that. that's about quarter -- if half on all behind beat from so the I'd about you half

And our next Citi. Smedes from Rose question is from

guess, there? anything U.S., more continued ask, next lot to a silver a was when been that's you're I have year, I it that at kind drive the particular I particularly now just group for looks doing going by kind 'XX what and more just seeing continues the you for driven helping Is it out you to of groups about it incremental be. think It just lining Is in strength wondering there wanted and to has talked -- well look citywide conventions? is is in And in like call could group, just there smaller space. been I a you while? into that that of

; I'd a say little it's of everything. bit

or spend every unable went the dollars And about events. not because X gestation millions -- big on business going unwilling think to X these in book for certainly, going they those surprisingly. takes years of advance. that. we've to been planning saying years you up and picking multiple what's this This that do they They and/or in just citywides They If on, get -- are call. longer

people the were a needs for workplace of somewhat, not a normalizing up is culture is sort and back time for making is meetings group of building -- sort where I we're our was. they're remote. also so like. really out people and that reality meetings of And want say wind terrific But still business. I'd mean get still from thing. a that. certainly is mean, see are then people. seeing lot innovation we're needed they to and And And even we're good the to seeing I more the going and seeing really social sales mean though in making -- that it corporate it I They have demand. when

work more than included. a people mobile, permanently, And pretty outside of footprint them people because they lot office it sort take needing own way we where By more less have. space the our requires space of a us of historically their and have environment are way, changed

that's wind a little well. so our sail in as And nice

broad-based. So long-winded way it's it's saying a of that's -- there's I X thing mean it. driving not

Dove our Lizzie Sachs. Goldman from And question . is next from

I unit to the very coming about. the of obviously international is wanted believe majority piece, just from which to pipeline I strong. go growth back is the

brands the you to see the a those take any So markets bit way your piece that you just as maybe that expansion, have And refresh a just stimulus. markets? kind refresh the opportunities, well little of on a where of driving different you key with to China international portfolio in key of as the adapt

Yes.

things around your the is, So for have markets the guess your the end, part brands adapt easy you like -- I the room and Lizzie, thanks the do prototypes sizes question, mean, yes, and I the that, is and world. to your

essence but around the adapting world. maintain still obviously and that, you're swim the their wins their positioning They ladder them and within things brand their like and

I on outside think that's world, call that, China, in about little business of under over XX-or-so it, think U.S. some a The that service U.S. the about the the construction it's things our construction, of what's dynamics around the of of things limited the stuff given XX% are of like going is -- that the it's percent sort half, the outside if under it's about just complexity you pipeline,

this it are U.S. XX the about pipeline, or sort in more year percent like of the outside of be so percent as and think the U.S. Deliveries going sort mid-XXs to

is great. around a China approval question. We broad jumping I think bit. a I'm starts. it was sorry, But the doing business little both think

businesses estate those and advantage of business, take in Our and service there's that's of Master a going China those approval of Limited starts and estate be lot will part headlines they're been Hilton read partnerships a and some And of trying What's you China reuse opens for both macro this pieces we able like in business, the business to Inn and is buildings in Garden in slowdown all on is adaptive think our in the real different of a of estate. China -- these even particularly our though about We're some China. real -- of to a the lot the find in bubbles uses developed. limited real lot our year. of of up our

points -- outlined in kind that So and we EMEA Investor think, be X take over to that in for our from gave speaking, X trends. NUG, new you or you've But Day, call in And back time we generally And I we a will be will know be think a be to will materials. coverage, that, but X.X half gone bit around through step of move will will point year-to-year. of relatively it, the is the when you Americas, the those it, so though, the little APAC. points the in you're period X the and I

more the And then builds. see new the developed our Western in we're APAC China. business more you'll shifting of outside In world world, Asia, to conversions. In

a of So there, East. in growth lot of in opportunities opportunities lot India, Middle a the opportunities lot of a growth growth

in So through a a certain slow the those we we're set strong, grow when can deploy. benefit we parts deploy that beautiful certain really the the down. And world of can and is world Diversification are to we're parts of seeing of thing, diversified of when it. parts products continuing

from is next Montour Barclays. question the And from Brandt

been, in a hotels curious answered. and it's of new, your and of asked and marketing feeling anything on the traction if there. of loyalty relatively members of how norm Curious you're start done the big earn to on been I my that's the system sort questions I'm out about website. how but there. have in has the People SLH. burn points those terms chunk Most you've know of their hotels can luxury early

you're of ahead properties And early, unique of super but sense very just resorts that are lot those mean middle in locations I of the in and the Yes. they sort in it summer. the a right, end went way time. Brandt, of is that book

the it in. only much have we given year there's just time So came so data of

But the of looking meaning at availability we super properties. They're are good, that customers these have the that with is do it. engaging data our

available it they already in the behavior system. been utilized did had in booked Now utilize weren't the healthy They set it, which when they they they summer redemptions, many very of for sort a way are given looking where that for. because came them -- this of we're exactly is

year, good And you'll good we a of into so then feels SLH a as summer get bit next real a start very the say some little go, feel the the relationship. -- the see and ownership the I think of very and to quarter get certainly time, and about uptick. And of way we I'd but into obviously, I community think or about long get X spring

like you hotels. if you go hotels our was like do to nearby I and like to from go went it. some XX to we few in X on I in a where have But app go having friends, we meet And Italy and the hotels hotels app, me. had in like Tuscany

what small many for and and very that's they're really So of customer a are for. but -- them looking high-end unique, leisure leisure, exactly

are shots terms it dreams. so and goal gives realize a really importantly, those enhancement people able place book to road to and to of us for And warriors that be people for in to on dream significant have

Michael And Bellisario the is question next Baird. from from

bit at RevPAR that's share to sort alluded XXXX business, last or a Is assume a backdrop on XXXX of to in that stuck in you your maybe you And for slower and then any a basis? more. kind in RevPAR to actually Chris, wanted index and of pipeline into dig to first differences year? least see relative was similarities today RevPAR better it, it when that little fair but just compared

said always see RevPAR myself mean so don't I like want I to that we obviously earlier, to contradict it's interesting. Yes. higher. I

And again, to see so like higher. I'd it will it I say always

available, And said and question, having typically, to is of environment to the to in And we are what share construction better up less terms disproportionately there available on the is there in more deliver. our that, we we those then going you where financeable. where performance benefits financing But that do more we're assets. jobs, it in new end saw able difficult the are If conversions environments getting time of we our environments, we in. are to our brands more and back are, just existing benefits for alluded because more approach of take

so is what been certainly And we've experiencing. that

break whether numbers, share very continue. or at look across market on look apart you high. you they're If you new on numbers development, it at the the board construction mean, I conversions, which

in continue share XX year the they We've going on grown single -- years getting here. So to market grow. every been almost I've

it higher gets, super focused harder but the you the So on go, that. we're

think there we thing, for giving we'll So I'm again And that the after full not -- doesn't that the and it in feel growth specific way. mean, about year same-store I deliver one. and demonstrated -- in EPS free But Xs higher demonstrate even a not answer you mean, and I year, EBITDA even isn't nice the this quarter we're and where in flow, to in, I that terrible we're bad. doesn't going think XX% growth, the and to going resilient is think than for really is the and because is model be environment on us it, next will in cash year demonstrate third as the so environment I really circa we're the that

of Imagine even environment be an point what from a done could in better same-store view.

competition. not -- it what answering can't macro, specifically. we the determine are whatever feel by know So do saying it like that's -- is can finalize I guess -- I But these we I'm I said, always conditions as we outperform not I'd

our We will. about feel so our in job And environment and ability this do and that. to feel every environment, good in to we good that about do we that, is

deliver. not environment to -- terrible But is our -- of ability this a we're not terms we feel in

from And the be question HSBC. Meredith from will Jensen next

bit I was and rate over the franchisees about rate. occupancy spoken wondering little bit sort conversation gone I wondering of and the a if few months? the past, shifted quite past pushing offset. And with how hotels that have I'm about you know you've speak a in could

to is just U.S. huge a the and personally broadly X, long running time in will of the obviously, and the stuff spending going of I because amount our sitting the public is because is X but here, inflation coming plus XX%, thing we U.S. chips a mean, There's is it's here be you I X sector reduction of about strength talk and spending not together, economy. running biggest forget yet shifted. on. And basic private between the fiscal all down put still And in sector. really we're think inflation it's that the hasn't inflation market which target X% It the underlying broad against infrastructure,

I us demand And growth drives sort of that lot of which business, fixed nonresidential decent I underpins investment, think our a which amount integrity. in all rate in continues a of think to give of

that from it expectation expect across you inflation And so And sectors. levels is is the a saw ours. of moderating of we our thing hypercharge generally while in lot the that same

that decent expect a pricing pressure. there's still of We amount

Christmas models its management about, the the not we sophisticated deciding of way, by every have think hand And every so it's rate thankfully. on we revenue night, as room very the with that button

data believe times, given here our that Hilton still is in at there most segments But sophisticated we at systems have all systems. good scientists most pricing and very conditions integrity. those those But of

flat on weekends, X nature, little that less bit probably The if leisure there. little be pressure I area demand normalizes, down be might or particularly a about bit there as may talked where less by a going think you

think different I last not few But is conditions. will it, we the when but I that short next, that see I the of finish up. Mike, rates will I macro leisure broadly, and leisure lot, months, up don't rates in as certainly. answer a because the just material we said, if know be that's think be year this Not think underlying I but nothing answered

from Beynon is from question next Chad The Macquarie.

acquisition just this of quarter. the of million Day. $XXX from things year, more you where the NUG? a guys X in Just sense the progress key months key a so at guide money just on and Kevin, a at goal continuing delay or costs this a to contract standpoint. you key Investor your highlighted a as good percentage the is came But more beginning we 'XX? reduce year, I know $XXX is are of money of the to that something one, million, this quick in this Obviously, to Or development, have is down left money have only for

approach. Yes. XX-plus Sure. key key XX% percentage of the I terms I strategic use more and of change we but when mean, in no still of money a mean timing, on our than bit our little competitive, look, I think just It's NUG bid, money to them of them. when we percent less have it use anything deals. We of the right? associated don't gets deals have with

end of the to closer getting the year. We're

We to think have bit year. of of are we more that is little in happen visibility works a more the to into going we next think that happen. have what A couple likely projects we

some projects. think you was bit heavier if last strategic lighter. little because of year, year it year, This will And bit a a be about

forward, going change in you in between last and probably no year if really year, about this strategy. year, next somewhere think think but I

from question next Patrick Scholes with Securities. The Truist

take on to for I'd call acquisitions, that, ROI are brand? not, buying long internally earnings? question these initially Kevin, a What them you. how to recent, are specifically it versus brand related your for does them for to if targets accretive? them a developing tuck-in Or And then these brands, be accretive

No.

about talked lot there's look, or this think, we've a I there, lot. Patrick, a

about, think you done we of lot haven't acquisitions. when think I a

alluded versus organically ROI build. always the It's pure of a it So suggests into if ROI near of but do when analysis, a sort to you Obviously, multibillion-dollar these build versus is over and infinite almost buy broadly businesses. build think brands build time from you build perspective. buy them we about you sort

disclosed deals that couple accretive recall last out you'll we didn't release been of the accretive And the of if we think done, from right? the of box, I box. Graduate, that they've the it's out we've basically -- press on

able environment and I them the a to So advantage to they bit were take well of wanted were distress a of in said. to as tuck these things, very really we accretive in on little strategically. they away, We're right things specific both of to buy

And Nassetta additional the would for conference our concludes to to I any ladies turn this question-and-answer now remarks. or over closing gentlemen, like Chris session. and back

thanks. everybody the in feel And that going about happy Chad, on for Yes. bit to good today, and really worked feel thank about about how quite as good XXXX. the full But a a talked lot We you with we've for year. the the we're quarter Obviously, And time. out. the setup I the world. third joined, fourth

today. myself funny be holiday you get to out year you at Anyway, the a has after when end of great everybody And that and of up season to year. more but bit catching good hope hear for years it's that, XXXX and little point. the with time look time it. We a again I specific on It's that forward say thanks to the

And concluded. has Thank thank now today's you, The you conference for sir. attending presentation.

You may now disconnect.