Hilton Worldwide Holdings Inc. reported a record-high development pipeline of 515,400 rooms for the third quarter ending Sept. 30. Systemwide comparable RevPAR for the period declined 1.1%, on a currency-neutral basis, compared to the same period in 2024, due to modest occupancy and ADR declines.
“Our third-quarter results continued to demonstrate the resilience of our business model, delivering strong bottom-line performance despite softer industry RevPAR,” said Christopher J. Nassetta, president/CEO, Hilton. “We remain optimistic that, in the U.S., lower interest rates, a more favorable regulatory environment, certainty on tax policy and a significant investment cycle will accelerate economic growth and travel demand, and, when paired with limited industry supply growth, should drive stronger RevPAR growth over the next several years. The quality of our development pipeline, acceleration in new development construction starts, attractiveness of our brands for conversions and continued growth of our brand presence globally gives us confidence in delivering net unit growth between 6.5% and 7.0% in 2025 and 6% to 7% over the next several years.”
Third-quarter highlights:
- Diluted EPS was $1.78, and diluted EPS, adjusted for special items, was $2.11
- Net income was $421 million
- Adjusted EBITDA was $976 million
- Approved 33,000 new rooms for development during the quarter, bringing the development pipeline to a record 515,400 rooms as of Sept. 30, 2025, representing growth of 5% from September 30, 2024
- Added 24,800 rooms to the system, resulting in 23,200 net additional rooms for the quarter, contributing to net unit growth of 6.5% from Sept. 30, 2024
- Announced the launch of a new lifestyle brand, Outset Collection by Hilton, in October
- Reached the 9,000th property milestone with the opening of the Signia by Hilton La Cantera Resort and Spa in October
- Full-year 2025 systemwide RevPAR is projected to be flat to an increase of 1% on a comparable and currency-neutral basis compared to 2024; full-year net income is projected to be between $1.604 billion and $1,625 billion; full-year Adjusted EBITDA is projected to be between $3.685 billion and $3.715 billion
- Full-year 2025 capital return is projected to be approximately $3.3 billion
Overview
For the three months ended Sept. 30, 2025, systemwide comparable RevPAR decreased 1.1% compared to the same period in 2024 due to modest occupancy and ADR declines. Management and franchise fee revenues increased 5.3% compared to the same period in 2024.
For the nine months ended Sept, 30, 2025, system-wide comparable RevPAR increased 0.3% compared to the same period in 2024 due to an increase in ADR. Management and franchise fee revenues increased 6.1% compared to the same period in 2024.
For the third quarter, diluted EPS was $1.78 and diluted EPS, adjusted for special items, was $2.11, compared to $1.38 and $1.92, respectively, for the same period last year. Net income and Adjusted EBITDA were $421 million and $976 million, respectively, for the third quarter, compared to $344 million and $904 million, respectively, for the same period last year.
For the nine months ended Sept. 30, 2025, diluted EPS was $4.84 and diluted EPS, adjusted for special items, was $6.03, compared to $4.09 and $5.36, respectively, for the nine months ended Sept. 30, 2024. Net income and Adjusted EBITDA were $1.163 billion and $2.779 billion, respectively, for the nine months ended Sept. 30, 2025, compared to $1.034 billion and $2.571 billion, respectively, for the nine months ended Sept. 30, 2024.
Development
In the third quarter, Hilton opened 199 hotels, totaling 24,800 rooms, resulting in 23,200 net room additions. The company continued to expand its luxury and lifestyle brands during the quarter, including the addition of the Conrad Hamburg, representing the brand’s debut in Germany, and the KROMO Bangkok, Curio Collection by Hilton, the brand’s first hotel in Thailand. It also opened the Sunseeker Resort Florida Gulf Coast, Curio by Hilton; signed the Makati in Metro Manila, Canopy by Hilton, representing the brand’s first hotel in the Philippines; and broke ground on the Signia by Hilton Savannah, which will serve as the Savannah Convention Center’s headquarters hotel. In Vietnam, the company approved nearly 1,800 rooms across five hotels to debut the Conrad, LXR and DoubleTree brands. Hilton reached another milestone with its 9,000th property, with the opening of the Signia by Hilton La Cantera Resort and Spa. The company also announced the launch of the new lifestyle brand, Outset Collection by Hilton, which has more than 60 hotels in development and for which bookings are expected to be available starting later this year.
Hilton added 33,000 rooms to the development pipeline during the third quarter, and, as of Sept. 30, 2025, the development pipeline totaled 3,648 hotels representing 515,400 rooms throughout 128 countries and territories, including 26 countries and territories where the company had no existing hotels. Additionally, of the rooms in the development pipeline, nearly half were under construction and more than half were located outside of the U.S.
Full-year outlook
- Systemwide comparable RevPAR, on a currency-neutral basis, is projected to be flat to an increase of 1% compared to 2024.
- Net income is projected to be between $1.604 billion and $1.625 billion.
- Adjusted EBITDA is projected to be between $3.685 billion and $3.715 billion.
- Contract acquisition costs and capital expenditures, excluding amounts reimbursed by third parties, are projected to be between $250 million and $300 million.
- Capital return is projected to be approximately $3.3 billion.
- General and administrative expenses are projected to be between $410 million and $420 million.
- Net unit growth is projected to be between 6.5% and 7%.
Fourth-quarter outlook
- Systemwide comparable RevPAR, on a currency-neutral basis, is projected to increase approximately 1% compared to the fourth quarter of 2024.
- Net income is projected to be between $441 million and $462 million.
- Adjusted EBITDA is projected to be between $906 million and $936 million.
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