Group 1: China's Economic Policy and Foreign Investment - The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China emphasized expanding high-level opening-up and creating a win-win cooperation environment, with a focus on maintaining a multilateral trade system and promoting international circulation [1] - By mid-2023, China had attracted a cumulative actual use of foreign capital amounting to $708.73 billion during the 14th Five-Year Plan period, with a year-on-year increase of 11.7% in newly established foreign-invested enterprises in the first half of 2025 [1][2] - The Ministry of Commerce reported that by the end of 2024, over 1.239 million foreign-invested enterprises had been established in China, with a cumulative actual use of foreign capital reaching 20.6 trillion yuan [2][6] Group 2: Multinational Corporations' Investments - Airbus inaugurated a second A320 series aircraft assembly line in Tianjin, which is expected to be fully operational by early 2026, reflecting the growing demand in the Chinese aviation market, projected to require 9,500 aircraft over the next 20 years [2][7] - Coca-Cola's recent financial report indicated a 14% increase in global sales of its sugar-free products, with the Asia-Pacific market being a significant growth driver [3] - Hilton Group opened the Waldorf Astoria Hotel in Shanghai, marking a milestone of over 888 hotels in China, and plans to double its hotel count in the country [5] Group 3: Industry Trends and Innovations - The report from the Ministry of Commerce indicated that high-tech sectors accounted for 43.7% of foreign investment in manufacturing by 2024, with foreign enterprises contributing nearly 50% to China's high-tech product exports [6][7] - The newly established Coca-Cola factory in Zhengzhou features advanced automation technologies, including a "smart robot picking" system, enhancing operational efficiency [6] - Boston Scientific launched its first manufacturing base in China, aiming to provide innovative medical products and strengthen local supply chains [8]

Group 1 - Bawang Tea has opened its 200th store in Malaysia, marking a significant milestone in its overseas expansion and indicating a shift to a scaled approach for Chinese tea brands [1] - The company faces challenges in balancing cultural differences and supply chain costs as it continues to expand [1] Group 2 - Zuli Jian Organic Food Membership Store has shifted from a fully direct sales model to a franchise model, starting with recruitment in Henan Province [2] - The store focuses on organic and low-GI health foods, targeting the elderly demographic [2] - This transition may test the company's supply chain, quality control, and profitability model [2] Group 3 - Hilton Hotels reported a third-quarter revenue increase of 8.7% year-on-year, reaching $3.12 billion, surpassing analyst expectations [3] - The company opened 199 new hotels in the third quarter, reflecting confidence in future demand [3] - The recovery in global travel and business travel has contributed to Hilton's strong performance [3] Group 4 - Gold prices have experienced a decline, dropping to around $4,070 per ounce, a decrease of nearly 6% from recent highs [4] - Despite the drop, Goldman Sachs maintains its forecast for gold to reach $4,900 per ounce by the end of 2026 [4] - The recent surge in gold prices has increased interest in physical gold products, but the current pullback may present a buying opportunity for long-term investors [4]

Core Insights - Hilton Worldwide Holdings Inc. is a leading global hospitality company with a diverse portfolio of hotels and resorts, competing with major chains like Marriott and Hyatt [1] Financial Performance - Hilton reported earnings of $2.11 per share for the quarter, exceeding analysts' consensus estimates of $2.05 by $0.06 [3][6] - The company's revenue for the quarter was $3.12 billion, surpassing the consensus estimate of $3.01 billion, representing an 8.8% increase compared to the same quarter last year [3][6] - Hilton has set its Q4 2025 guidance at an EPS range of 1.94 to 2.03 and FY 2025 guidance at 7.97 to 8.06 EPS [4] Stock Performance - Despite a negative return on equity of 46.13% and a net margin of 13.84%, Hilton's stock reached a high of $279.51 and last traded at $278.19 [4] - The stock's trading volume was 510,532 shares, marking a significant 74% decline from the average session volume of nearly 1.94 million shares [4] - Currently, Hilton's stock price is $271.34, having decreased by 1.35% today, with fluctuations between a low of $269.81 and a high of $275.86 during the trading day [5] Market Analysis - Truist Financial set a price target of $253 for Hilton, indicating a price difference of approximately -6.67% from the current trading price of $271.09 [2] - Hilton's stock surged by 4.6% during mid-day trading, driven by a stronger-than-expected earnings report [2]

Core Insights - Hilton reported an increase in profit and revenue for Q3 2025, with net income of $420 million and diluted EPS of $1.78, compared to $344 million and $1.38 per share in Q3 2024 [1][2] - Revenue for the quarter rose by 8.8% to $3.12 billion, while adjusted EBITDA was $976 million [2] - System-wide comparable RevPAR decreased by 1.1% on a currency neutral basis compared to Q3 2024, attributed to modest occupancy and average daily rate declines [2][4] Financial Performance - For the nine months ending September 30, 2025, system-wide comparable RevPAR increased by 0.3%, with net income at $1.16 billion and adjusted EBITDA at $2.78 billion, resulting in diluted EPS of $4.84 [3] - Hilton forecasts full year 2025 net income between $1.604 billion and $1.625 billion, with adjusted EBITDA expected to be in the range of $3.685 billion to $3.715 billion [4] Development and Growth - Hilton approved 33,000 rooms for development in Q3 2025, increasing its global pipeline to 515,400 rooms, a 5% increase from the previous year [3] - The company added 24,800 rooms to its system, resulting in a net addition of 23,200 rooms and a 6.5% rise in net unit growth from the same point last year [4] - Hilton projects net unit growth between 6.5% and 7.0% in 2025, supported by a strong development pipeline and new brand introductions [6][7] Strategic Initiatives - Hilton opened its 9,000th property with the launch of Signia by Hilton La Cantera Resort and Spa, marking nearly three hotel openings per day since August 2024 [6][7] - The introduction of a new lifestyle brand, Outset Collection by Hilton, is part of the strategy to grow its portfolio and increase market share in hotel conversions in the US [7]

Core Insights - The opening of the Waldorf Astoria Hotel in Qiantan marks a significant addition to Shanghai's cultural and tourism market, making it the third city globally to host two Waldorf Astoria hotels, following Doha and Dubai [1] - The hotel is developed by Lujiazui Group and managed by Hilton Group, located in the core area of the emerging Qiantan International Business District, which offers a diverse range of shopping, business, tourism, events, and performances [1] - Hilton Group expresses strong confidence in the high-end tourism market in China, highlighting the hotel's opening as a milestone in their expansion in the Asia-Pacific region [1] Company and Industry Summary - The Waldorf Astoria brand first entered the Asia-Pacific region in 2010 with the opening of the Bund Waldorf Astoria in Shanghai, initiating a global expansion strategy [1] - Over the past 15 years, the Waldorf brand has established five hotels in China, including locations in Shanghai (Bund and Qiantan), Beijing, Chengdu, and Xiamen [1] - Hilton Group's Asia-Pacific President, Alan Watts, emphasizes Shanghai's status as a vibrant international metropolis and the brand's commitment to providing timeless elegance and unique experiences in the new Qiantan area [1]

Core Insights - Hilton Worldwide Holdings Inc. shares increased over 4% following the company's raised full-year earnings guidance and better-than-expected third-quarter results, reflecting optimism for a sustained rebound in U.S. travel demand [1] Financial Performance - The company raised its full-year adjusted EBITDA forecast to between $3.69 billion and $3.72 billion, an increase from the previous estimate of $3.65 billion to $3.71 billion, surpassing analysts' expectations of $3.68 billion [2] - For the third quarter, Hilton reported adjusted earnings per share of $2.11, exceeding forecasts of $2.05, while revenue rose to $2.11 billion from $1.92 billion year-over-year, also above expectations [3] - Revenue per available room (RevPAR) decreased by 1.1% year-over-year to $119.33, slightly missing projections, but management noted strong pricing and occupancy trends heading into the fourth quarter [3] Industry Context - Industry sentiment has improved recently, supported by positive outlooks from airlines like United Airlines and Delta Air Lines, indicating steady travel activity following earlier slowdowns due to uncertainties from tariff policies [2]

Market Overview - The U.S. stock market opened with slight declines across major indices, including S&P 500 (-0.04%), Russell 2000 (-0.11%), Dow (-0.14%), and Nasdaq (-0.18%) [2] Earnings Reports - Intuitive Surgical reported strong earnings, leading to a significant increase in its stock price by 17.76%. Other notable gainers include Vertiv (+7.1%) and Hilton (+3.1%) [3] - Pegasystems saw a rise of 12.5%, while Capital One and Haliburton increased by 4.12% and 2.77%, respectively, benefiting from positive earnings sentiment from the previous day [3] - Conversely, Texas Instruments experienced a sharp decline of 7.9% following weaker after-hours results, alongside other laggards like Manhattan Associates (-7.9%), Netflix (-7.4%), and Newmont (-4.77%) [4] - Mattel's stock fell by 5.5% after missing earnings expectations and reporting a decline in North American sales [4] Upcoming Earnings - Major earnings reports expected later today include Tesla, SAP, and IBM, which will be released after the market closes [8] Economic Indicators - The 10-Year Treasury yield decreased by 1.9 points to 3.944%, while the Continuous Gold Contract fell by 1.76% to $4,036.80 [6]

Core Insights - Affluent travelers are driving demand for high-end hotel brands, helping Hilton offset weaker demand in other segments [2][4] - Hilton Worldwide Holdings reported better-than-expected third-quarter results, with stock prices rising significantly [2][6] Financial Performance - Hilton posted adjusted earnings of $2.11 per share, with revenue increasing nearly 9% year-over-year to $3.12 billion, surpassing analyst expectations [3] - The company raised its adjusted EPS guidance to a range of $7.97 to $8.06 from a previous range of $7.83 to $8.00 [5] Market Trends - Revenue per available room (RevPAR) for luxury brands such as LXR, Conrad, and Waldorf Astoria increased by 6.4%, 2.6%, and 1.7% respectively, indicating strong interest in luxury travel [4] - Overall system-wide RevPAR decreased by 1.1%, with a notable decline of 2.3% in the U.S., but a significant increase of 9.9% in Africa and the Middle East [5] Future Outlook - The company remains optimistic about future growth in the U.S. due to lower interest rates and a favorable regulatory environment, which are expected to boost travel demand [6]

Core Insights - Hilton Worldwide Holdings Inc. reported strong third-quarter 2025 results, with earnings and revenues exceeding expectations, leading to a 2.5% increase in shares during pre-market trading [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q3 2025 were $2.11, surpassing the Zacks Consensus Estimate of $2.03, and up from $1.92 in the same quarter last year [3]. - Total revenues reached $3.12 billion, exceeding the consensus estimate of $3.02 billion, and reflecting an 8.8% year-over-year increase [3]. - Franchise and licensing fees improved to $739 million from $698 million year-over-year, although below the estimate of $758.4 million [3]. - Base and other management fees rose to $93 million from $88 million, while incentive management fees decreased by 1.5% to $65 million [4]. - Ownership revenues were $322 million, down from $330 million year-over-year, and below the expected $349.8 million [4]. - System-wide comparable RevPAR declined by 1.1% year-over-year on a currency-neutral basis [5]. - Adjusted EBITDA was $976 million, an 8% increase year-over-year, exceeding the estimate of $953.5 million [5]. Balance Sheet and Capital Management - As of September 30, 2025, Hilton had total cash and cash equivalents of $1,126 million, up from $448 million in the previous quarter [6]. - Total debt stood at $11.7 billion with a weighted average interest rate of approximately 4.8%, and no significant maturities before April 2027 [6]. - The company repurchased 2.8 million shares at $270.31 each during the third quarter [7]. Business Development - Hilton added 199 hotels, totaling 24,800 rooms, achieving a net room growth of 23,200 [8]. - The development pipeline expanded to 3,648 properties across 128 countries, with nearly half of the rooms under construction and more than half located outside the U.S. [10]. - Notable brand expansions included the Conrad brand entering Germany and the first Curio Collection property opening in Thailand [9]. Future Outlook - For Q4 2025, Hilton anticipates net income between $441 million and $462 million, with adjusted EBITDA expected to be between $906 million and $936 million [11]. - Full-year 2025 net income is projected to be in the range of $1.64-$1.62 billion, with adjusted EBITDA between $3.69 billion and $3.72 billion [12]. - System-wide RevPAR for 2025 is expected to be flat to up 1% year-over-year [13].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Hilton's unaudited condensed consolidated financial statements and notes for Q3 2025 and FY 2024 are presented here [Condensed Consolidated Balance Sheets](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Hilton's balance sheet, detailing assets, liabilities, and equity, is presented for Q3 2025 and FY 2024 | Metric | September 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (2025 vs 2024) | | :--------------------------------- | :------------------------------- | :------------------------------- | :-------------------- | | **Assets** | | | | | Cash and cash equivalents | $1,057 | $1,301 | -$244 | | Total current assets | $3,119 | $3,272 | -$153 | | Goodwill | $5,079 | $5,035 | +$44 | | Brands | $5,022 | $4,990 | +$32 | | Management and franchise contracts, net | $1,366 | $1,235 | +$131 | | Total assets | $16,641 | $16,522 | +$119 | | **Liabilities & Equity (Deficit)** | | | | | Accounts payable, accrued expenses and other | $2,597 | $2,124 | +$473 | | Current maturities of long-term debt | $35 | $535 | -$500 | | Total current liabilities | $4,698 | $4,700 | -$2 | | Long-term debt | $11,603 | $10,616 | +$987 | | Total liabilities | $21,532 | $20,211 | +$1,321 | | Total Hilton stockholders' deficit | ($4,932) | ($3,727) | -$1,205 | | Total deficit | ($4,905) | ($3,706) | -$1,199 | - Total assets increased by **$119 million** to **$16,641 million** as of September 30, 2025, primarily driven by increases in goodwill, brands, and management/franchise contracts[8](index=8&type=chunk) - Total liabilities increased by **$1,321 million** to **$21,532 million**, mainly due to a significant increase in long-term debt and accounts payable, accrued expenses and other, while current maturities of long-term debt decreased substantially[8](index=8&type=chunk) - Hilton's stockholders' deficit widened by **$1,205 million** to **($4,932) million**, primarily influenced by an increase in treasury stock[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Hilton's financial performance, including revenues, expenses, and net income, is presented for Q3 and nine months ended September 30, 2025 and 2024 | Metric (in millions, except per share data) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Franchise and licensing fees | $739 | $698 | $2,109 | $1,958 | | Total revenues | $3,120 | $2,867 | $8,952 | $8,391 | | Total expenses | $2,343 | $2,242 | $6,861 | $6,515 | | Operating income | $777 | $623 | $2,091 | $1,881 | | Net income attributable to Hilton stockholders | $420 | $344 | $1,160 | $1,030 | | Basic EPS | $1.79 | $1.40 | $4.89 | $4.13 | | Diluted EPS | $1.78 | $1.38 | $4.84 | $4.09 | | Cash dividends declared per share | $0.15 | $0.15 | $0.45 | $0.45 | - Total revenues increased by **8.8%** to **$3,120 million** for the three months and by **6.7%** to **$8,952 million** for the nine months ended September 30, 2025[11](index=11&type=chunk) - Operating income saw a significant increase of **24.7%** to **$777 million** for the three months and **11.2%** to **$2,091 million** for the nine months ended September 30, 2025[11](index=11&type=chunk) - Net income attributable to Hilton stockholders grew by **22.1%** to **$420 million** for the three months and **12.6%** to **$1,160 million** for the nine months ended September 30, 2025[11](index=11&type=chunk) - Diluted EPS increased by **29.0%** to **$1.78** for the three months and **18.3%** to **$4.84** for the nine months ended September 30, 2025[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) This section details Hilton's comprehensive income, including net income and other comprehensive income (loss) components, for Q3 and nine months ended September 30, 2025 and 2024 | Metric (in millions) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income | $421 | $344 | $1,163 | $1,034 | | Total other comprehensive income (loss) | ($9) | $24 | $69 | ($9) | | Comprehensive income | $412 | $368 | $1,232 | $1,025 | | Comprehensive income attributable to Hilton stockholders | $412 | $366 | $1,229 | $1,020 | - Total other comprehensive income (loss) shifted from a gain of **$24 million** in Q3 2024 to a loss of **$9 million** in Q3 2025, primarily due to currency translation adjustments and cash flow hedge adjustments[12](index=12&type=chunk) - For the nine months ended September 30, 2025, total other comprehensive income was **$69 million**, a significant improvement from a loss of **$9 million** in the prior year, mainly driven by a positive currency translation adjustment[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section summarizes Hilton's cash flows from operating, investing, and financing activities for the nine months ended September 30, 2025 and 2024 | Metric (in millions) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $1,926 | $1,431 | | Net cash used in investing activities | ($130) | ($367) | | Net cash used in financing activities | ($2,052) | ($274) | | Net increase (decrease) in cash, restricted cash and cash equivalents | ($250) | $780 | | Cash, restricted cash and cash equivalents, end of period | $1,126 | $1,655 | - Net cash provided by operating activities increased by **34.6%** to **$1,926 million** for the nine months ended September 30, 2025, driven by higher net income and favorable working capital changes[15](index=15&type=chunk)[116](index=116&type=chunk) - Net cash used in investing activities decreased by **64.6%** to **$130 million**, primarily due to lower cash paid for acquisitions compared to the prior year which included the Graduate brand and Sydell Group acquisitions[15](index=15&type=chunk)[117](index=117&type=chunk) - Net cash used in financing activities significantly increased to **$2,052 million**, mainly due to higher debt repayments and increased share repurchases, partially offset by new debt issuance[15](index=15&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [Note 1: Organization and Basis of Presentation](index=8&type=section&id=Note%201%3A%20Organization%20and%20Basis%20of%20Presentation) This note describes Hilton's global hospitality operations and the basis for preparing its unaudited condensed consolidated financial statements in accordance with U.S. GAAP - Hilton Worldwide Holdings