Hilton Increases Stock Repurchase Authorization

Rhea-AI Summary

Hilton (NYSE: HLT) has announced an expansion of its stock repurchase program, with its Board of Directors authorizing an additional $3.5 billion for common stock buybacks. This increase brings the total authorized amount for future repurchases to approximately $4.8 billion. The company maintains flexibility in executing these repurchases through various methods, including open market transactions and private negotiations. The implementation of the program will be influenced by factors such as liquidity, cash flow, and market conditions, with Hilton retaining the right to suspend or discontinue the program at any time.

Positive

• Authorization of additional $3.5 billion for stock repurchases
• Total buyback authorization increased to $4.8 billion
• Flexible implementation approach allowing for optimal execution
• Strong financial position indicated by size of buyback program

Negative

• No commitment to actually execute the full buyback amount
• Program may reduce company's cash reserves for operations and growth
• Buyback program can be suspended or discontinued at any time

Insights

Financial Analyst

This substantial $3.5 billion increase in share buyback authorization, bringing the total to $4.8 billion, represents approximately 8% of Hilton's current market capitalization. The expanded program signals strong confidence from management in the company's financial health and future prospects.

Share repurchases typically support stock prices by reducing the number of outstanding shares and increasing earnings per share. For Hilton, this flexibility in capital allocation demonstrates robust cash flow generation and a shareholder-friendly approach. However, the discretionary nature of the program means actual buybacks will depend on market conditions and competing capital needs.

The size of this authorization is particularly noteworthy given the cyclical nature of the hospitality industry, suggesting management sees sustained strength in their business model and cash flow generation capabilities.

MCLEAN, Va.--(BUSINESS WIRE)-- The Board of Directors of Hilton Worldwide Holdings Inc. (NYSE: HLT) today authorized the repurchase of an additional $3.5 billion of common stock under the Company's existing stock repurchase program, bringing the total amount currently authorized for future repurchases to approximately $4.8 billion.

Hilton may purchase shares in the open market, in privately negotiated transactions or in such other manner as determined by Hilton, including through repurchase plans complying with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The amount and timing of any repurchases made under the stock repurchase program will depend on a variety of factors, including available liquidity, cash flow and market conditions. The stock repurchase program does not obligate Hilton to repurchase any dollar amount or number of shares of common stock and the program may be suspended or discontinued at any time.

Forward-Looking Statements

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 Hilton's stock repurchase program. 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; the loss of key senior management personnel; 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, 2023, as such factors may be updated from time to time in Hilton's periodic filings with the SEC. Hilton’s Form 10-K is filed with the SEC and 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.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 24 world-class brands comprising more than 8,300 properties and over 1.25 million rooms, in 138 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 200 million Hilton Honors 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, X, LinkedIn, Instagram and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241114082580/en/

Jill Chapman

Investor Contact

1-703-883-1000

jill.chapman@hilton.com



Kent Landers

Media Contact

1-703-883-3246

kent.landers@hilton.com

Source: Hilton Worldwide Holdings Inc.

FAQ

How much additional stock repurchase did Hilton (HLT) authorize in 2024?

Hilton authorized an additional $3.5 billion for stock repurchases, bringing the total authorization to approximately $4.8 billion.

What is the total amount authorized for Hilton's (HLT) stock repurchase program?

The total amount currently authorized for future stock repurchases is approximately $4.8 billion.

How will Hilton (HLT) implement its stock repurchase program?

Hilton may purchase shares through open market transactions, privately negotiated transactions, or other methods as determined by the company, subject to SEC rules and regulations.

What factors will determine Hilton's (HLT) stock repurchase timing and amount?

The timing and amount of repurchases will depend on available liquidity, cash flow, and market conditions, with no obligation to repurchase any specific amount.