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Information Technology : Semiconductors & Semiconductor Equipment | Mid Cap Value
Company profile

ON Semiconductor Corporation offers a portfolio of sensors, power management, connectivity, custom and system on chip (SoC), analog, logic, timing, and discrete devices. The Company's segments include Power Solutions Group, Analog Solutions Group and Image Sensor Group. The Power Solutions Group offers a range of discrete, module and integrated semiconductor products. The Analog Solutions Group designs and develops analog, mixed-signal and logic application specific integrated circuits (ASICs) and application specific standard products (ASSPs), and power solutions. The Image Sensor Group designs and develops complementary metal oxide semiconductor (CMOS) and charge-coupled device (CCD) image sensors, as well as proximity sensors, image signal processors, and actuator drivers for autofocus and image stabilization for various end users in the automotive, industrial, consumer, wireless, medical, and aerospace/defense markets.

Closing Price
$26.16
Day's Change
0.24 (0.93%)
Bid
--
Ask
--
B/A Size
--
Day's High
26.24
Day's Low
25.78
Volume
(Light)
Volume:
3,608,752

10-day average volume:
7,259,567
3,608,752

Hilton Reports Second Quarter Results

6:00 am ET August 6, 2020 (BusinessWire) Print

Hilton Worldwide Holdings Inc. ("Hilton" or the "Company") (NYSE: HLT) today reported its second quarter 2020 results. The following results reflect the material impact that the novel coronavirus ("COVID-19") pandemic had on Hilton's business. Highlights include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200806005083/en/

Diluted EPS was $(1.55) for the second quarter, and diluted EPS, adjusted for special items, was $(0.61) Net loss was $432 million for the second quarter Adjusted EBITDA was $51 million for the second quarter System-wide comparable RevPAR decreased 81.0 percent on a currency neutral basis for the second quarter from the same period in 2019 Approved 18,400 new rooms for development during the second quarter, growing Hilton's development pipeline to 414,000 rooms as of June 30, 2020, representing 11 percent growth from June 30, 2019 Opened 6,800 rooms in the second quarter, contributing to 5,500 net additional rooms in Hilton's system As of July 31, 2020, 96 percent of Hilton's system-wide hotels were open Launched Hilton CleanStay, a new program created in collaboration with RB, maker of Lysol and Dettol, and Mayo Clinic, to deliver an elevated standard of cleanliness and disinfection to properties worldwide, and Hilton EventReady, which focuses on cleanliness and customer service specific to meetings and events Announced a new strategic partnership with Country Garden to develop 1,000 Home2 Suites by Hilton in China, representing the first major extended stay offering for Hilton outside of North America

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "Our second quarter results reflect the challenges that our business has experienced as a result of the pandemic. However, as restrictions are lifting and properties around the world are reopening, we are seeing improved occupancy. While we have a long journey in front of us, we are on the road to recovery and look forward to the opportunities ahead."

On a global level, the pervasive impact of COVID-19 began in March, with its most significant adverse impact on occupancy and RevPAR in April. Since April, all major regions have experienced month over month increases in occupancy and RevPAR. Hilton experienced the most notable recoveries in the U.S. and Asia Pacific with occupancy levels up approximately 20 percentage points and 15 percentage points, respectively, from April to June. Hilton announced a corporate restructuring in June 2020 to organize its business to be best suited to operate through the pandemic and beyond. Costs relating to the reorganization were recognized in the quarter and accrued as of June 30, 2020.

For the three and six months ended June 30, 2020, system-wide comparable RevPAR decreased 81.0 percent and 53.9 percent, respectively, due to both occupancy and ADR decreases. Additionally, management fee and franchise and licensing fee revenues decreased 77 percent and 50 percent during the three and six months ended June 30, 2020, respectively. The decreases were due to the COVID-19 pandemic and the related reduction in global travel and tourism, which required the complete or partial suspensions of hotel operations at approximately 20 percent of Hilton's properties at some point during the six months ended June 30, 2020, of which over half of the properties had reopened as of June 30, 2020.

For the three months ended June 30, 2020, diluted EPS was $(1.55) and diluted EPS, adjusted for special items, was $(0.61) compared to $0.89 and $1.06, respectively, for the three months ended June 30, 2019. Net income (loss) and Adjusted EBITDA were $(432) million and $51 million, respectively, for the three months ended June 30, 2020, compared to $261 million and $618 million, respectively, for the three months ended June 30, 2019.

For the six months ended June 30, 2020, diluted EPS was $(1.48) and diluted EPS, adjusted for special items, was $0.13 compared to $1.42 and $1.85, respectively, for the six months ended June 30, 2019. Net income (loss) and Adjusted EBITDA were $(414) million and $414 million, respectively, for the six months ended June 30, 2020, compared to $420 million and $1,117 million, respectively, for the six months ended June 30, 2019.

Development

In the second quarter of 2020, Hilton opened 60 new hotels totaling 6,800 rooms, and achieved net unit growth of over 5,500 rooms.

Additionally, during the quarter, Hilton entered into an exclusive management license agreement with Country Garden to introduce and develop Home2 Suites by Hilton branded properties in China. Hilton believes Home2 Suites, as an affordable extended stay, upper midscale offering, is well positioned to capture growth opportunities resulting from the growing spending power of consumers in China's smaller cities.

As of June 30, 2020, Hilton's development pipeline totaled over 2,700 hotels consisting of nearly 414,000 rooms throughout 121 countries and territories, including 35 countries and territories where Hilton does not currently have any open hotels. Additionally, of the rooms in the development pipeline, 234,000 rooms were located outside the U.S., and 222,000 rooms were under construction.

Balance Sheet and Liquidity

As of June 30, 2020, Hilton had $10.6 billion of long-term debt outstanding, excluding deferred financing costs and discount, with a weighted average interest rate of 3.91 percent. Excluding finance lease liabilities and other debt of Hilton's consolidated variable interest entities, Hilton had $10.3 billion of long-term debt outstanding with a weighted average interest rate of 3.86 percent and no maturities until 2024. Total cash and cash equivalents were $3,575 million as of June 30, 2020, including $72 million of restricted cash and cash equivalents.

In March 2020, Hilton suspended share repurchases and the payment of dividends, as a result of efforts to preserve capital and maintain liquidity. No share repurchases were made after March 5, 2020 and no dividends were declared or paid during the three months ended June 30, 2020. The stock repurchase program remains authorized by the board of directors and the amount remaining under Hilton's stock repurchase program is approximately $2.2 billion.

Conference Call

Hilton will host a conference call to discuss second quarter 2020 results on August 6, 2020 at 10:00 a.m. Eastern Time. Participants may listen to the live webcast by logging on to the Hilton Investor Relations website at https://ir.hilton.com/events-and-presentations. A replay and transcript of the webcast will be available within 24 hours after the live event at https://ir.hilton.com/financial-reporting/quarterly-results/2020.

Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States ("U.S.") or 1-412-317-6061 internationally using the conference ID 0333617. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-877-344-7529 in the U.S. or 1-412-317-0088 internationally using the conference ID 10145887.

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 the expectations regarding the impact of the COVID-19 pandemic, the performance of Hilton's business, financial results, liquidity and capital resources and other non-historical statements. In some cases, these forward-looking statements can be identified by the use of words such as "outlook," "believes," "expects," "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 related to the impact of the COVID-19 outbreak, risks inherent to the hospitality industry, macroeconomic factors beyond Hilton's control, 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. 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, 2019 and "Part II --Item 1A. Risk Factors" of Hilton's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, filed with the Securities and Exchange Commission (the "SEC"), as supplemented in Hilton's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020, which is expected to be filed on or about the date of this press release, as such factors may be further updated from time to time in Hilton's periodic filings with the SEC, which are 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.

Non-GAAP Financial Measures

The Company refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including: net income (loss), adjusted for special items; diluted EPS, adjusted for special items; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA ratio. See the schedules to this press release, including the "Definitions" section, for additional information and reconciliations of such non-GAAP financial measures.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 18 world-class brands comprising more than 6,200 properties with more than 983,000 rooms in 118 countries and territories. Dedicated to fulfilling its mission to be the world's most hospitable company, Hilton welcomed more than 3 billion guests in its 100-year history, earned a top spot on the 2019 World's Best Workplaces list and was named the 2019 Global Industry Leader on the Dow Jones Sustainability Indices. In 2020, Hilton CleanStay was introduced, bringing an industry-defining standard of cleanliness and disinfection to hotels worldwide. Through the award-winning guest loyalty program Hilton Honors, the 108 million members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy, plus enjoy instant benefits, including digital check-in with room selection, Digital Key and Connected Room. Visit newsroom.hilton.com for more information, and connect with Hilton on facebook.com/hiltonnewsroom, twitter.com/hiltonnewsroom, linkedin.com/company/hilton, instagram.com/hiltonnewsroom and youtube.com/hiltonnewsroom.

                    HILTON WORLDWIDE HOLDINGS INC.
                      EARNINGS RELEASE SCHEDULES
                           TABLE OF CONTENTS
 
Condensed Consolidated Statements of Operations
Comparable and Currency Neutral System-Wide Hotel Operating Statistics
Property Summary
Capital Expenditures and Contract Acquisition Costs
Non-GAAP Financial Measures Reconciliations
                                                                                                                                                           
                                                                                                                                                                      HILTON WORLDWIDE HOLDINGS INC.
                                                                                                                                                              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                              (unaudited, in millions, except per share data)
                                         Three Months Ended                                                            Three Months Ended                                                                                                                    Six Months Ended
                                              June 30,                                                                      June 30,                                                                                                                             June 30,
                                                           -------------------- --------------------------------------------------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------------------------------------------
                                                2020                                   2020                                                       2019                                                   2020                                                   2019
                                                           -------------------- ------------------------------------------------------                        ------------------------------------------------------                        ----------------------------------------------                        ------------------------------------------------------
Revenues                                                                                                                                                                      
                                                                              $                    $            132                        $            444                        $    471                        $            826  
   Franchise and licensing fees
                                                                            8                   89           68                  169  
   Base and other management fees
                                                                           (5 )                                    58           18                  113  
   Incentive management fees
                                                                           31                  387          241                  699  
   Owned and leased hotels
                                                                           10                   26           33                   52  
   Other revenues
                                                           -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                          176                1,004          831                1,859  
    
                                                                          388                1,480        1,653                2,829  
   Other revenues from managed and franchised properties
                                                           -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                          564                2,484        2,484                4,688  
      Total revenues
                                                                                                                                                                              
    
Expenses                                                                                                                                                                      
                                                                           95                  334          334                  632  
   Owned and leased hotels
                                                                           88                   86          179                  170  
   Depreciation and amortization
                                                                           63                  113          123                  220  
   General and administrative
                                                                           38       --           38       --  
   Reorganization costs
                                                                           15       --          127       --  
   Impairment losses
                                                                           13                   15           27                   35  
   Other expenses
                                                           -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                          312                  548          828                1,057  
    
                                                                          554                1,458        1,890                2,841  
   Other expenses from managed and franchised properties
                                                           -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                          866                2,006        2,718                3,898  
      Total expenses
                                                                                                                                                                              
    
Operating income (loss)                                                  (302 )                                   478         (234 )                                   790  
                                                                                                                                                                              
    
                                                                         (106 )                                  (101 )                          (200 )                                  (199 )
   Interest expense
                                                                          (13 )                                    (3 )                            (4 )                                    (3 )
   Loss on foreign currency transactions
                                                                          (23 )                                   (12 )                           (23 )                                    (8 )
   Other non-operating loss, net
                                                           -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                              
    
Income (loss) before income taxes                                        (444 )                                   362         (461 )                                   580  
                                                                                                                                                                              
    
                                                                           12                 (101 )                            47                 (160 )
   Income tax benefit (expense)
                                                           -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                              
    
Net income (loss)                                                        (432 )                                   261         (414 )                                   420  
Net loss (income) attributable to noncontrolling interests                  2                   (1 )                             2                   (2 )
                                                           -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Net income (loss) attributable to Hilton stockholders                         $                    $           (430 )                                         $            260                        $   (412 )                                         $            418  
                                                           ==================== ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
                                                                                                                                                                              
    
Weighted average shares outstanding:                                                                                                                                          
                                                                          277                  290          277                  291  
   Basic
                                                           ==================== ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
                                                                          278                  292          279                  294  
   Diluted
                                                           ==================== ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
                                                                                                                                                                              
    
Earnings (loss) per share:                                                                                                                                                    
                                                                              $                    $          (1.55 )                                         $           0.90                        $  (1.49 )                                         $           1.43  
   Basic
                                                           ==================== ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
                                                                              $                    $          (1.55 )                                         $           0.89                        $  (1.48 )                                         $           1.42  
   Diluted
                                                           ==================== ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
                                                                                                                                                           
Cash dividends declared per share                                             $                    $ --                        $           0.15                        $   0.15                        $           0.30  
                                                           ==================== ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
 
                                                                                                                                   HILTON WORLDWIDE HOLDINGS INC.
                                                                                                               COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
                                                                                                                                              BY REGION
                                                                                                                                             (unaudited)
        Three Months Ended June 30,                                                                                                          Three Months Ended June 30,
                          --------------------------- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 Occupancy                                            Occupancy                                                                 ADR                                                        RevPAR
                          --------------------------- ------------------------------------------------------------------------                           -------------------------------------------------------                          ------------------------------------------------------
                   2020                       2020                        vs. 2019                          2020               vs. 2019               2020               vs. 2019
                          --------------------------- ------------------------                       ----------------------------                        --------------------------                       ---------                       -------------------------                       ---------
U.S.                                             24.4 24.4 %                                   (55.9 (55.9 )%  pts.                                    $                    $ 101.17                (33.2 (33.2 )%                      $                    $ 24.68                (79.7 (79.7 )%
Americas (excluding U.S.)                        10.3 10.3                  (60.7 (60.7 )          76.72                (32.7 (32.7 )         7.93                (90.2 (90.2 )
Europe                                            7.1  7.1                  (72.3 (72.3 )          84.21                (39.9 (39.9 )         5.98                (94.6 (94.6 )
Middle East & Africa                             15.4 15.4                  (50.2 (50.2 )         103.91                (28.7 (28.7 )        16.01                (83.3 (83.3 )
Asia Pacific                                     28.8 28.8                  (40.7 (40.7 )          74.09                (33.3 (33.3 )        21.31                (72.4 (72.4 )
System-wide                                      22.3 22.3                  (56.1 (56.1 )          97.18                (33.2 (33.2 )        21.67                (81.0 (81.0 )
                 
         Six Months Ended June 30,                                                                                                            Six Months Ended June 30,
                          --------------------------- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 Occupancy                                            Occupancy                                                                 ADR                                                        RevPAR
                          --------------------------- ------------------------------------------------------------------------                           -------------------------------------------------------                          ------------------------------------------------------
                   2020                       2020                        vs. 2019                          2020               vs. 2019               2020               vs. 2019
                          --------------------------- ------------------------                       ----------------------------                        --------------------------                       ---------                       -------------------------                       ---------
U.S.                                             41.5 41.5 %                                   (34.5 (34.5 )%  pts.                                    $                    $ 129.02                (13.2 (13.2 )%                      $                    $ 53.56                (52.6 (52.6 )%
Americas (excluding U.S.)                        32.4 32.4                  (35.8 (35.8 )         109.78                 (5.9  (5.9 )        35.58                (55.3 (55.3 )
Europe                                           30.0 30.0                  (43.1 (43.1 )         115.43                (12.6 (12.6 )        34.68                (64.1 (64.1 )
Middle East & Africa                             38.6 38.6                  (29.8 (29.8 )         128.99                 (8.8  (8.8 )        49.85                (48.5 (48.5 )
Asia Pacific                                     33.4 33.4                  (34.1 (34.1 )          96.70                (15.5 (15.5 )        32.31                (58.2 (58.2 )
System-wide                                      39.3 39.3                  (35.1 (35.1 )         124.94                (12.6 (12.6 )        49.06                (53.9 (53.9 )
                                                                                                                           HILTON WORLDWIDE HOLDINGS INC.
                                                                                                       COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
                                                                                                                                      BY BRAND
                                                                                                                                     (unaudited)
               Three Months Ended June 30,                                                                                               Three Months Ended June 30,
                                 --------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                        Occupancy                                            Occupancy                                                           ADR                                             RevPAR
                                 --------------------------- ------------------------------------------------------------------------                           -------------------------------------------                          -------------------------------------------
                          2020                       2020                        vs. 2019                          2020            vs. 2019  vs. 2019                2020            vs. 2019  vs. 2019
                                 --------------------------- ------------------------                       ----------------------------                        --------------------------  -------- ---------                       --------------------------  -------- ---------
Waldorf Astoria Hotels & Resorts                         6.6  6.6 %                                   (67.3 (67.3 )%  pts.                                    $                    $ 280.87    (24.4 (24.4 )%                      $                    $  18.41    (93.3 (93.3 )%
Conrad Hotels & Resorts                                 19.0 19.0                  (56.3 (56.3 )         134.88    (48.7 (48.7 )         25.69    (87.0 (87.0 )
Canopy by Hilton                                         9.1  9.1                  (67.4 (67.4 )         129.14    (36.2 (36.2 )         11.82    (92.4 (92.4 )
Hilton Hotels & Resorts                                 13.0 13.0                  (64.8 (64.8 )         107.65    (37.4 (37.4 )         14.04    (89.5 (89.5 )
Curio Collection by Hilton                              14.7 14.7                  (56.0 (56.0 )         111.51    (46.4 (46.4 )         16.35    (88.9 (88.9 )
DoubleTree by Hilton                                    17.3 17.3                  (59.0 (59.0 )          90.78    (30.8 (30.8 )         15.71    (84.3 (84.3 )
Tapestry Collection by Hilton                           28.9 28.9                  (47.2 (47.2 )          98.85    (41.2 (41.2 )         28.59    (77.7 (77.7 )
Embassy Suites by Hilton                                16.8 16.8                  (65.2 (65.2 )         113.09    (33.0 (33.0 )         18.95    (86.3 (86.3 )
Hilton Garden Inn                                       22.4 22.4                  (56.4 (56.4 )          90.46    (32.8 (32.8 )         20.22    (80.9 (80.9 )
Hampton by Hilton                                       27.2 27.2                  (51.0 (51.0 )          92.08    (25.6 (25.6 )         25.07    (74.1 (74.1 )
Tru by Hilton                                           29.8 29.8                  (41.2 (41.2 )          81.62    (23.9 (23.9 )         24.31    (68.1 (68.1 )
Homewood Suites by Hilton                               40.6 40.6                  (43.4 (43.4 )         103.65    (27.8 (27.8 )         42.06    (65.1 (65.1 )
Home2 Suites by Hilton                                  40.0 40.0                  (41.0 (41.0 )          93.46    (22.1 (22.1 )         37.43    (61.5 (61.5 )
System-wide                                             22.3 22.3                  (56.1 (56.1 )          97.18    (33.2 (33.2 )         21.67    (81.0 (81.0 )
                        
                Six Months Ended June 30,                                                                                                 Six Months Ended June 30,
                                 --------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                        Occupancy                                            Occupancy                                                           ADR                                             RevPAR
                                 --------------------------- ------------------------------------------------------------------------                           -------------------------------------------                          -------------------------------------------
                          2020                       2020                        vs. 2019                          2020            vs. 2019  vs. 2019                2020            vs. 2019  vs. 2019
                                 --------------------------- ------------------------                       ----------------------------                        --------------------------  -------- ---------                       --------------------------  -------- ---------
Waldorf Astoria Hotels & Resorts                        29.8 29.8 %                                   (42.6 (42.6 )%  pts.                                    $                    $ 407.98      6.8   6.8 %                       $                    $ 121.51    (56.1 (56.1 )%
Conrad Hotels & Resorts                                 32.4 32.4                  (41.8 (41.8 )         202.74    (19.9 (19.9 )         65.69    (65.0 (65.0 )
Canopy by Hilton                                        30.2 30.2                  (39.0 (39.0 )         175.53    (13.1 (13.1 )         52.96    (62.1 (62.1 )
Hilton Hotels & Resorts                                 33.6 33.6                  (41.0 (41.0 )         152.89     (9.8  (9.8 )         51.32    (59.4 (59.4 )
Curio Collection by Hilton                              33.5 33.5                  (33.6 (33.6 )         185.70    (10.8 (10.8 )         62.15    (55.5 (55.5 )
DoubleTree by Hilton                                    35.3 35.3                  (37.4 (37.4 )         118.51     (8.7  (8.7 )         41.79    (55.7 (55.7 )
Tapestry Collection by Hilton                           39.9 39.9                  (28.4 (28.4 )         117.52    (23.9 (23.9 )         46.95    (55.5 (55.5 )
Embassy Suites by Hilton                                38.4 38.4                  (40.1 (40.1 )         146.82    (11.2 (11.2 )         56.40    (56.6 (56.6 )
Hilton Garden Inn                                       39.6 39.6                  (35.2 (35.2 )         113.15    (13.5 (13.5 )         44.78    (54.2 (54.2 )
Hampton by Hilton                                       41.5 41.5                  (31.7 (31.7 )         106.34    (11.8 (11.8 )         44.17    (50.0 (50.0 )
Tru by Hilton                                           41.6 41.6                  (22.7 (22.7 )          90.36    (12.7 (12.7 )         37.60    (43.5 (43.5 )
Homewood Suites by Hilton                               53.2 53.2                  (26.9 (26.9 )         121.04    (13.6 (13.6 )         64.37    (42.6 (42.6 )
Home2 Suites by Hilton                                  51.5 51.5                  (24.5 (24.5 )         104.10    (11.2 (11.2 )         53.66    (39.9 (39.9 )
System-wide                                             39.3 39.3                  (35.1 (35.1 )         124.94    (12.6 (12.6 )         49.06    (53.9 (53.9 )
                                                                                                                          
                                                                                                                                                                                                                                     HILTON WORLDWIDE HOLDINGS INC.
                                                                                                                                                                                                                   COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
                                                                                                                                                                                                                                     BY SEGMENT
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                          
                                                                                                                            Three Months Ended June 30,                                                                                                                                 Three Months Ended June 30,
                                                                                                                                                                                    --------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Occupancy                                                    Occupancy                                                                                 ADR                                                                       RevPAR
                                                                                                                                                                                    --------------------------- -----------------------------------------------------------------------------------------                           ---------------------------------------------------------------------                          ---------------------------------------------------------------------
                                                                                                                                       2020                          2020                                 vs. 2019                                 2020                      vs. 2019                       2020                      vs. 2019
                                                                                                                                                                                    --------------------------- ------------------------------                       ---------------------------------------                        ------------------------------                       -------------------                       ------------------------------                       -------------------
Management and franchise                                                                                                                                                                                   22.6       22.6 %                                   (55.8      (55.8 )%        pts.                                    $                    $      97.08                (32.8      (32.8 )%                           $                    $      21.98                (80.6      (80.6 )%
Ownership(1)                                                                                                                                                                                                5.3        5.3                  (74.6      (74.6 )                   117.81                (39.9      (39.9 )                   6.25                (96.0      (96.0 )
System-wide                                                                                                                                                                                                22.3       22.3                  (56.1      (56.1 )                    97.18                (33.2      (33.2 )                  21.67                (81.0      (81.0 )
                                                                                                                                     
                                                                                                                             Six Months Ended June 30,                                                                                                                                   Six Months Ended June 30,
                                                                                                                                                                                    --------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Occupancy                                                    Occupancy                                                                                 ADR                                                                       RevPAR
                                                                                                                                                                                    --------------------------- -----------------------------------------------------------------------------------------                           ---------------------------------------------------------------------                          ---------------------------------------------------------------------
                                                                                                                                       2020                          2020                                 vs. 2019                                 2020                      vs. 2019                       2020                      vs. 2019
                                                                                                                                                                                    --------------------------- ------------------------------                       ---------------------------------------                        ------------------------------                       -------------------                       ------------------------------                       -------------------
Management and franchise                                                                                                                                                                                   39.5       39.5 %                                   (34.9      (34.9 )%        pts.                                    $                    $     124.50                (12.4      (12.4 )%                           $                    $      49.16                (53.5      (53.5 )%
Ownership(1)                                                                                                                                                                                               28.1       28.1                  (46.4      (46.4 )                   155.51                (15.4      (15.4 )                  43.69                (68.1      (68.1 )
System-wide                                                                                                                                                                                                39.3       39.3                  (35.1      (35.1 )                   124.94                (12.6      (12.6 )                  49.06                (53.9      (53.9 )
                                                                                                                                                                                            
____________
(1)                  Includes owned and leased hotels, as well as hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest. Includes owned and leased hotels, as well as hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.
                                                                                                                                                           
                                                                                                                                                                         HILTON WORLDWIDE HOLDINGS INC.
                                                                                                                                                                                PROPERTY SUMMARY
                                                                                                                                                                               As of June 30, 2020
                                                                                                                                                           
                Owned / Leased(1)                         Owned / Leased(1)                              Managed                                   Managed                                 Franchised                                Franchised                                   Total                                     Total
                                 -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------
                   Properties           Properties              Rooms                Rooms             Properties           Properties              Rooms                Rooms             Properties           Properties              Rooms                Rooms             Properties           Properties              Rooms                Rooms
                                 -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Waldorf Astoria Hotels & Resorts                                
                                       --       --       --       --                   14                   14                5,963                5,963       --       --       --       --                   14                   14                5,963                5,963
   U.S.
                                       --       --       --       --                    2                    2                  257                  257       --       --       --       --                    2                    2                  257                  257
   Americas (excluding U.S.)
                                                    2                    2                  463                  463                    4                    4                  898                  898       --       --       --       --                    6                    6                1,361                1,361
   Europe
                                       --       --       --       --                    5                    5                1,224                1,224       --       --       --       --                    5                    5                1,224                1,224
   Middle East & Africa
                                       --       --       --       --                    5                    5                1,014                1,014       --       --       --       --                    5                    5                1,014                1,014
   Asia Pacific
LXR Hotels & Resorts                                            
                                       --       --       --       --       --       --       --       --                    1                    1                   76                   76                    1                    1                   76                   76
   Americas (excluding U.S.)
                                       --       --       --       --                    1                    1                  307                  307       --       --       --       --                    1                    1                  307                  307
   Europe
                                       --       --       --       --       --       --       --       --                    1                    1                  234                  234                    1                    1                  234                  234
   Middle East & Africa
Conrad Hotels & Resorts                                         
                                       --       --       --       --                    6                    6                2,211                2,211                    1                    1                  225                  225                    7                    7                2,436                2,436
   U.S.
                                       --       --       --       --                    2                    2                  402                  402       --       --       --       --                    2                    2                  402                  402
   Americas (excluding U.S.)
                                       --       --       --       --                    4                    4                1,155                1,155       --       --       --       --                    4                    4                1,155                1,155
   Europe
                                                    1                    1                  614                  614                    2                    2                  993                  993       --       --       --       --                    3                    3                1,607                1,607
   Middle East & Africa
                                                    1                    1                  164                  164                   21                   21                6,138                6,138                    1                    1                  659                  659                   23                   23                6,961                6,961
   Asia Pacific
Canopy by Hilton                                                
                                       --       --       --       --       --       --       --       --                   13                   13                2,114                2,114                   13                   13                2,114                2,114
   U.S.
                                       --       --       --       --                    1                    1                  174                  174       --       --       --       --                    1                    1                  174                  174
   Americas (excluding U.S.)
                                       --       --       --       --       --       --       --       --                    2                    2                  263                  263                    2                    2                  263                  263
   Europe
                                       --       --       --       --                    1                    1                  200                  200       --       --       --       --                    1                    1                  200                  200
   Middle East & Africa
                                       --       --       --       --                    2                    2                  329                  329       --       --       --       --                    2                    2                  329                  329
   Asia Pacific
Hilton Hotels & Resorts                                         
                                       --       --       --       --                   65                   65               47,454               47,454                  176                  176               54,085               54,085                  241                  241              101,539              101,539
   U.S.
                                                    1                    1                  405                  405                   26                   26                9,455                9,455                   21                   21                7,096                7,096                   48                   48               16,956               16,956
   Americas (excluding U.S.)
                                                   50                   50               13,919               13,919                   43                   43               14,439               14,439                   40                   40               10,875               10,875                  133                  133               39,233               39,233
   Europe
                                                    5                    5                1,998                1,998                   42                   42               13,482               13,482                    2                    2                1,415                1,415                   49                   49               16,895               16,895
   Middle East & Africa
                                                    5                    5                2,999                2,999                   98                   98               35,454               35,454                    6                    6                2,203                2,203                  109                  109               40,656               40,656
   Asia Pacific
Curio Collection by Hilton                                      
                                       --       --       --       --                    6                    6                2,485                2,485                   44                   44                8,804                8,804                   50                   50               11,289               11,289
   U.S.
                                       --       --       --       --                    2                    2                   99                   99                    8                    8                  825                  825                   10                   10                  924                  924
   Americas (excluding U.S.)
                                       --       --       --       --                    5                    5                  520                  520                   16                   16                1,766                1,766                   21                   21                2,286                2,286
   Europe
                                       --       --       --       --                    3                    3                  445                  445                    1                    1                  356                  356                    4                    4                  801                  801
   Middle East & Africa
                                       --       --       --       --                    4                    4                  773                  773                    2                    2                  248                  248                    6                    6                1,021                1,021
   Asia Pacific
DoubleTree by Hilton                                            
                                       --       --       --       --                   32                   32               10,864               10,864                  331                  331               76,663               76,663                  363                  363               87,527               87,527
   U.S.
                                       --       --       --       --                    2                    2                  306                  306                   34                   34                6,680                6,680                   36                   36                6,986                6,986
   Americas (excluding U.S.)
                                       --       --       --       --                   12                   12                3,156                3,156                   99                   99               16,917               16,917                  111                  111               20,073               20,073
   Europe
                                       --       --       --       --                   12                   12                3,164                3,164                    6                    6                  719                  719                   18                   18                3,883                3,883
   Middle East & Africa
                                       --       --       --       --                   62                   62               17,015               17,015                    3                    3                1,072                1,072                   65                   65               18,087               18,087
   Asia Pacific
Tapestry Collection by Hilton                                   
                                       --       --       --       --       --       --       --       --                   34                   34                4,490                4,490                   34                   34                4,490                4,490
   U.S.
                                       --       --       --       --       --       --       --       --                    2                    2                  190                  190                    2                    2                  190                  190
   Americas (excluding U.S.)
Embassy Suites by Hilton                                        
                                       --       --       --       --                   41                   41               10,924               10,924                  210                  210               47,152               47,152                  251                  251               58,076               58,076
   U.S.
                                       --       --       --       --                    3                    3                  667                  667                    5                    5                1,336                1,336                    8                    8                2,003                2,003
   Americas (excluding U.S.)
Hilton Garden Inn                                               
                                       --       --       --       --                    4                    4                  425                  425                  688                  688               95,255               95,255                  692                  692               95,680               95,680
   U.S.
                                       --       --       --       --                   11                   11                1,571                1,571                   44                   44                6,829                6,829                   55                   55                8,400                8,400
   Americas (excluding U.S.)
                                       --       --       --       --                   20                   20                3,764                3,764                   53                   53                8,788                8,788                   73                   73               12,552               12,552
   Europe
                                       --       --       --       --                   15                   15                3,272                3,272                    2                    2                  271                  271                   17                   17                3,543                3,543
   Middle East & Africa
                                       --       --       --       --                   30                   30                6,423                6,423       --       --       --       --                   30                   30                6,423                6,423
   Asia Pacific
Hampton by Hilton                                               
                                       --       --       --       --                   29                   29                3,547                3,547                2,221                2,221              218,745              218,745                2,250                2,250              222,292              222,292
   U.S.
                                       --       --       --       --                   13                   13                1,685                1,685                  103                  103               12,450               12,450                  116                  116               14,135               14,135
   Americas (excluding U.S.)
                                       --       --       --       --                   17                   17                2,836                2,836                   70                   70               10,763               10,763                   87                   87               13,599               13,599
   Europe
                                       --       --       --       --                    3                    3                  723                  723       --       --       --       --                    3                    3                  723                  723
   Middle East & Africa
                                       --       --       --       --       --       --       --       --                  126                  126               21,202               21,202                  126                  126               21,202               21,202
   Asia Pacific
Tru by Hilton                                                   
                                       --       --       --       --       --       --       --       --                  133                  133               12,806               12,806                  133                  133               12,806               12,806
   U.S.
                                       --       --       --       --       --       --       --       --                    1                    1                   90                   90                    1                    1                   90                   90
   Americas (excluding U.S.)
Homewood Suites by Hilton                                       
                                       --       --       --       --                   10                   10                1,052                1,052                  472                  472               53,858               53,858                  482                  482               54,910               54,910
   U.S.
                                       --       --       --       --                    3                    3                  406                  406                   22                   22                2,457                2,457                   25                   25                2,863                2,863
   Americas (excluding U.S.)
Home2 Suites by Hilton                                          
                                       --       --       --       --                    3                    3                  313                  313                  401                  401               42,086               42,086                  404                  404               42,399               42,399
   U.S.
                                       --       --       --       --       --       --       --       --                    7                    7                  753                  753                    7                    7                  753                  753
   Americas (excluding U.S.)
Other                                  --       --       --       --                    4                    4                1,995                1,995                    3                    3                1,151                1,151                    7                    7                3,146                3,146
                                 -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Hotels                                             65                   65               20,562               20,562                  690                  690              219,979              219,979                5,405                5,405              733,967              733,967                6,160                6,160              974,508              974,508
Hilton Grand Vacations                 --       --       --       --       --       --       --       --                   55                   55                8,957                8,957                   55                   55                8,957                8,957
                                 -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
____________
(1)  Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest. Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.
                                                                  
                                                                                                        HILTON WORLDWIDE HOLDINGS INC.
                                                                                              CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS
                                                                                                       (unaudited, dollars in millions)
                                                                  
                                              Three Months Ended                           Three Months Ended                                 
                                                   June 30,                                     June 30,                                                      Increase / (Decrease)
                                                                -------------------- ----------------------------------------------------------------                          ----------------------------------------------------------
                                                     2020                   2020                      2019                      $                      %
                                                                -------------------- ----------------------                       ----------------------                       -------------------                       -------------------
Capital expenditures for property and equipment(1)                                 $                    $ 18                      $ 23           (5 )                (21.7 )
Capitalized software costs(2)                                       16     25           (9 )                (36.0 )
                                                                -------------------- -------------------- --                      -------------------- --                      ---------- ---------
                                                                    34     48          (14 )                (29.2 )
   Total capital expenditures
Contract acquisition costs                                          12     28          (16 )                (57.1 )
                                                                -------------------- -------------------- --                      -------------------- --                      ---------- ---------
                                                                                   $                    $ 46                      $ 76          (30 )                (39.5 )
      Total capital expenditures and contract acquisition costs
                                                                ==================== ==================== ==                      ==================== ==                      ========== =========
                                                                  
                                               Six Months Ended                             Six Months Ended                                  
                                                   June 30,                                     June 30,                                                      Increase / (Decrease)
                                                                -------------------- ----------------------------------------------------------------                          ----------------------------------------------------------
                                                     2020                   2020                      2019                      $                      %
                                                                -------------------- ----------------------                       ----------------------                       -------------------                       -------------------
Capital expenditures for property and equipment(1)                                 $                    $ 30                      $ 46          (16 )                (34.8 )
Capitalized software costs(2)                                       33     44          (11 )                (25.0 )
                                                                -------------------- -------------------- --                      -------------------- --                      ---------- ---------
                                                                    63     90          (27 )                (30.0 )
   Total capital expenditures
Contract acquisition costs                                          23     43          (20 )                (46.5 )
                                                                -------------------- -------------------- --                      -------------------- --                      ---------- ---------
____________
(1)    Includes expenditures for hotels, corporate and other property and equipment, of which $4 million and $1 million were indirectly reimbursed by hotel owners for the three months ended June 30, 2020 and 2019, respectively, and $7 million and $6 million were indirectly reimbursed by hotel owners for the six months ended June 30, 2020 and 2019, respectively. Excludes expenditures for furniture, fixtures and equipment ("FF&E") replacement reserves of $7 million and $15 million for the three months ended June 30, 2020 and 2019, respectively, and $21 million and $29 million for the six months ended June 30, 2020 and 2019, respectively.
(2)    Includes $6 million and $21 million of expenditures that were indirectly reimbursed by hotel owners for the three months ended June 30, 2020 and 2019, respectively, and $20 million and $36 million for the six months ended June 30, 2020 and 2019, respectively.
                                                                                                                                                                              
                                                                                                                                                                                 HILTON WORLDWIDE HOLDINGS INC.
                                                                                                                                                                           NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
                                                                                                                                                                  NET INCOME (LOSS) AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS
                                                                                                                                                                         (unaudited, in millions, except per share data)
                                                                                                                                                                              
                                                      Three Months Ended                                                            Three Months Ended                                                                                                                        Six Months Ended
                                                           June 30,                                                                      June 30,                                                                                                                                 June 30,
                                                                        -------------------- --------------------------------------------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------------------------------------------
                                                             2020                                   2020                                                       2019                                                       2020                                                       2019
                                                                        -------------------- ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------
Net income (loss) attributable to Hilton stockholders, as reported                         $                    $           (430 )                                         $            260                        $           (412 )                                         $            418  
Diluted EPS, as reported                                                                   $                    $          (1.55 )                                         $           0.89                        $          (1.48 )                                         $           1.42  
Special items:                                                                                                                                                                                     
                                                                                           $                    $            166                        $            (22 )                                         $            237                        $             12  
   Net other expenses (revenues) from managed and franchised properties
                                                                                        47                   51                   96                  102  
   Purchase accounting amortization(1)
                                                                                         7                   15                   21                   29  
   FF&E replacement reserves
                                                                                        38       --                   38       --  
   Reorganization costs
                                                                                        15       --                  127       --  
   Impairment losses
                                                                            --                    8       --                    8  
   Financing transactions(2)
                                                                                        22                    9                   25                   10  
   Other adjustments(3)
                                                                        -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                       295                   61                  544                  161  
      Total special items before tax
                                                                                       (35 )                                   (11 )                                   (94 )                                   (35 )
   Income tax expense on special items
                                                                        -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                           $                    $            260                        $             50                        $            450                        $            126  
         Total special items after tax
                                                                        -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                
Net income (loss), adjusted for special items                                              $                    $           (170 )                                         $            310                        $             38                        $            544  
                                                                        ==================== ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
____________
(1)    Represents the amortization of intangible assets that were recorded at fair value in October 2007 when the Company became a wholly owned subsidiary of affiliates of The Blackstone Group Inc.
(2)    Includes expenses recognized in connection with the June 2019 refinancings and repayments of the senior secured credit facilities that were included in other non-operating loss, net.
                                                                                                                                                                
                                                                                                                                                              HILTON WORLDWIDE HOLDINGS INC.
                                                                                                                                                        NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
                                                                                                                                                        ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
                                                                                                                                                             (unaudited, dollars in millions)
                                                                                                                                                                
                                                      Three Months Ended                                                        Three Months Ended                                                                                                      Six Months Ended
                                                           June 30,                                                                  June 30,                                                                                                               June 30,
                                                                        -------------------- ------------------------------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------
                                                             2020                               2020                                                   2019                                                   2020                                         2019
                                                                        -------------------- ----------------------------------------------                        ------------------------------------------------------                        ----------------------------------------------                        ----------------------------------
Net income (loss)                                                                          $                    $   (432 )                                       $                    $            261                      $                    $   (414 )                                       $                    $            420
                                                                               106                  101          200                  199
   Interest expense
                                                                               (12 )                                   101          (47 )                                   160
   Income tax expense (benefit)
                                                                                88                   86          179                  170
   Depreciation and amortization
                                                                        -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- --------------
EBITDA                                                                        (250 )                                   549          (82 )                                   949
                                                                                13                    3            4                    3
   Loss on foreign currency transactions
                                                                                 7                   15           21                   29
   FF&E replacement reserves
                                                                                24                   47           12                   81
   Share-based compensation expense
                                                                                38       --           38       --
   Reorganization costs
                                                                                15       --          127       --
   Impairment losses
                                                                                 7                    7           15                   14
   Amortization of contract acquisition costs
                                                                               166                  (22 )                           237                   12
   Net other expenses (revenues) from managed and franchised properties
                                                                                31                   19           42                   29
   Other adjustment items(1)
                                                                        -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- --------------
____________
(1)  Includes severance not related to the reorganization and other items. The three and six months ended June 30, 2020 also include losses related to the disposal of an investment and an accrual for a loan guarantee for a franchised hotel. The three and six months ended June 30, 2019 also include expenses recognized in connection with refinancings and repayments of the senior secured credit facilities. Includes severance not related to the reorganization and other items. The three and six months ended June 30, 2020 also include losses related to the disposal of an investment and an accrual for a loan guarantee for a franchised hotel. The three and six months ended June 30, 2019 also include expenses recognized in connection with refinancings and repayments of the senior secured credit facilities.
                                             Three Months Ended                                                    Three Months Ended                                                                                                        Six Months Ended
                                                  June 30,                                                              June 30,                                                                                                                 June 30,
                                                               -------------------- ----------------------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------------------
                                                    2020                               2020                                               2019                                               2020                                               2019
                                                               -------------------- ----------------------------------------------                        ----------------------------------------------                        ----------------------------------------------                        ----------------------------------------------
Total revenues, as reported                                                       $                    $    564                        $  2,484                        $  2,484                        $  4,688  
                                                                        7            7           15           14  
   Add: amortization of contract acquisition costs
                                                                     (388 )                        (1,480 )                        (1,653 )                        (2,829 )
   Less: other revenues from managed and franchised properties
                                                               -------------------- -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
Total revenues, as adjusted                                                       $                    $    183                        $  1,011                        $    846                        $  1,873  
                                                               ==================== ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                           
Adjusted EBITDA                                                                   $                    $     51                        $    618                        $    414                        $  1,117  
                                                                                                                                                                           
Adjusted EBITDA margin                                               27.9 %                          61.1 %                          48.9 %                          59.6 %
                                                               ==================== ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================
 
                                                                                                                                                             HILTON WORLDWIDE HOLDINGS INC.
                                                                                                                                                       NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
                                                                                                                                                     NET DEBT AND NET DEBT TO ADJUSTED EBITDA RATIO
                                                                                                                                                            (unaudited, dollars in millions)
                                                                                                                                                                                       June 30,                               June 30,                                             December 31,
                                                                                                                                                                                         2020                                   2020                                                   2019
                                                                                                                                                                                                    -------------------- ------------------------------------------------------                        ----------------------------------------------
Long-term debt, including current maturities                                                                                                                                                                           $                    $         10,482                      $                    $  7,993  
Add: unamortized deferred financing costs and discount                                                                                                                                                              90           83  
                                                                                                                                                                                                    -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ------ --------------------
Long-term debt, including current maturities and excluding unamortized deferred financing costs and discount                                                                                                    10,572        8,076  
                                                                                                                                                                                                                     7            2  
   Add: Hilton's share of unconsolidated affiliate debt, excluding unamortized deferred financing costs
                                                                                                                                                                                                                (3,503 )                          (538 )
   Less: cash and cash equivalents
                                                                                                                                                                                                                   (72 )                           (92 )
   Less: restricted cash and cash equivalents
                                                                                                                                                                                                    -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ------ --------------------
Net debt                                                                                                                                                                                                               $                    $          7,004                      $                    $  7,448  
                                                                                                                                                                                                    ==================== ==================== ============== ==================== ==================== ==================== ====== ====================
                                                                                                                                                                                      
                                            Six Months Ended                                                    Six Months Ended                                                                          Year Ended                                               TTM(1)
                                                June 30,                                                            June 30,                                                                             December 31,                                             June 30,
                                                             -------------------- ------------------------------------------------------------------------------------------------------------                           ------------------------------------------------------                        ----------------------------------------------
                                                  2020                                   2020                                   2019                         2019                                            2019                                                   2020
                                                             -------------------- ------------------------------------------------------   -------------------- ----------------------------------                       ------------------------------------------------------                        ----------------------------------------------
Net income (loss)                                                               $                    $           (414 )                                       $                    $            420                    $                    $            886                      $                    $     52  
                                                                            200                  199                414          415  
   Interest expense
                                                                            (47 )                                   160                358          151  
   Income tax expense (benefit)
                                                                            179                  170                346          355  
   Depreciation and amortization
                                                             -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ------ --------------------
EBITDA                                                                      (82 )                                   949              2,004          973  
                                                                 --       --                (81 )                           (81 )
   Gain on sale of assets, net
                                                                              4                    3                  2            3  
   Loss on foreign currency transactions
                                                                             21                   29                 59           51  
   FF&E replacement reserves
                                                                             12                   81                154           85  
   Share-based compensation expense
                                                                             38       --     --           38  
   Reorganization costs
                                                                            127       --     --          127  
   Impairment losses
                                                                             15                   14                 29           30  
   Amortization of contract acquisition costs
                                                                            237                   12                 77          302  
   Net other expenses from managed and franchised properties
                                                                             42                   29                 64           77  
   Other adjustment items(2)
                                                             -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ------ --------------------
Adjusted EBITDA                                                                 $                    $            414                      $                    $          1,117                    $                    $          2,308                      $                    $  1,605  
                                                             ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ==================== ====== ====================
                                                                                                                                                                            
Net debt                                                                                                                                                                           $                    $  7,004  
                                                                                                                                                                            
____________
(1)    Trailing twelve months ("TTM") June 30, 2020 is calculated as the six months ended June 30, 2020 plus the year ended December 31, 2019 less the six months ended June 30, 2019.
(2)    Includes severance not related to the reorganization and other items. The six months ended June 30, 2020 includes losses related to the disposal of an investment and an accrual for a loan guarantee for a franchised hotel. The six months ended June 30, 2019 and year ended December 31, 2019 include expenses recognized in connection with refinancings and repayments of the senior secured credit facilities and, the year ended December 31, 2019 also includes impairment losses.

HILTON WORLDWIDE HOLDINGS INC. DEFINITIONS

Trailing Twelve Month Financial Information

This press release includes certain unaudited financial information for the TTM period ended June 30, 2020, which is calculated as the six months ended June 30, 2020 plus the year ended December 31, 2019 less the six months ended June 30, 2019. This presentation is not in accordance with GAAP. However, the Company believes that this presentation provides useful information to investors regarding its recent financial performance, and it views this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess its historical results. In addition, the Company's management uses TTM information to evaluate the Company's financial performance for ongoing planning purposes.

The COVID-19 pandemic had a material adverse impact on the Company's results for the three and six months ended June 30, 2020, and the Company expects it to continue to have a material adverse impact on the results for an indeterminate length of time. Management is making estimates and judgments in light of the circumstances, and this interim period, as well as upcoming periods, are unlikely to be comparable to past performance or indicative of future performance. As such, TTM information may not currently be useful for projecting future operating results.

Net Income (Loss), Adjusted for Special Items, and Diluted EPS, Adjusted for Special Items

Net income (loss), adjusted for special items, and diluted earnings (loss) per share ("EPS"), adjusted for special items, are not recognized terms under GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with GAAP. In addition, the Company's definition of net income (loss), adjusted for special items, and diluted EPS, adjusted for special items, may not be comparable to similarly titled measures of other companies.

Net income (loss), adjusted for special items, and diluted EPS, adjusted for special items, are included to assist investors in performing meaningful comparisons of past, present and future operating results and as a means of highlighting the results of the Company's ongoing operations.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Earnings (loss) before interest expense, taxes and depreciation and amortization ("EBITDA"), presented herein, reflects net income (loss), excluding interest expense, income tax benefit (expense) and depreciation and amortization.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including gains, losses, revenues and expenses in connection with: (i) asset dispositions for both consolidated and unconsolidated equity investments; (ii) foreign currency transactions; (iii) debt restructurings and retirements; (iv) FF&E replacement reserves required under certain lease agreements; (v) reorganization, severance, relocation and other related expenses; (vi) share-based compensation; (vii) non-cash impairment; (viii) amortization of contract acquisition costs; (ix) the net effect of reimbursable costs included in other revenues and other expenses from managed and franchised properties; and (x) other items.

Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of total revenues, adjusted to exclude the amortization of contract acquisition costs and other revenues from managed and franchised properties.

The Company believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors about the Company and its financial condition and results of operations for the following reasons: (i) these measures are among the measures used by the Company's management team to evaluate its operating performance and make day-to-day operating decisions and (ii) these measures are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in the industry. Additionally, these measures exclude certain items that can vary widely across different industries and among competitors within the Company's industry. For instance, interest expense and income taxes are dependent on company specifics, including, among other things, capital structure and operating jurisdictions, respectively, and, therefore, could vary significantly across companies. Depreciation and amortization, as well as amortization of contract acquisition costs, are dependent upon company policies, including the method of acquiring and depreciating assets and the useful lives that are used. For Adjusted EBITDA, the Company also excludes items such as: (i) FF&E replacement reserves for leased hotels to be consistent with the treatment of FF&E for owned hotels, where it is capitalized and depreciated over the life of the FF&E; (ii) share-based compensation expense (benefit), as this could vary widely among companies due to the different plans in place and the usage of them; (iii) the net effect of the Company's cost reimbursement revenues and reimbursed expenses, as the Company contractually does not operate the related programs to generate a profit over the terms of the respective contracts; and (iv) other items that are not core to the Company's operations and are not reflective of the Company's operating performance.

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not recognized terms under GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with GAAP. The Company's definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies and may have limitations as analytical tools.

Net Debt

Net debt, presented herein, is a non-GAAP financial measure that the Company uses to evaluate its financial leverage. Net debt is calculated as: (i) long-term debt, including current maturities and excluding unamortized deferred financing costs and discount and (ii) the Company's share of unconsolidated affiliate debt, excluding unamortized deferred financing costs; reduced by: (a) cash and cash equivalents and (b) restricted cash and cash equivalents. Net debt should not be considered as a substitute to debt presented in accordance with GAAP. Net debt may not be comparable to a similarly titled measure of other companies.

The Company believes net debt provides useful information about its indebtedness to investors as it is frequently used by securities analysts, investors and other interested parties to compare the indebtedness of companies.

Net Debt to Adjusted EBITDA Ratio

Net debt to Adjusted EBITDA ratio, presented herein, is a non-GAAP financial measure and is included as it is frequently used by securities analysts, investors and other interested parties to compare the financial condition of companies. Net debt to Adjusted EBITDA ratio should not be considered as an alternative to measures of financial condition derived in accordance with GAAP, and it may not be comparable to a similarly titled measure of other companies.

Comparable Hotels

The Company defines comparable hotels as those that: (i) were active and operating in the Company's system for at least one full calendar year as of the end of the current period, and open January 1st of the previous year; (ii) have not undergone a change in brand or ownership type during the current or comparable periods reported; and (iii) have not sustained substantial property damage, business interruption, undergone large-scale capital projects or for which comparable results were not available.

Of the 6,160 hotels in the Company's system as of June 30, 2020, 5,018 hotels were classified as comparable hotels. The 1,142 non-comparable hotels included 192 hotels, or approximately three percent of the total hotels in the system, that were removed from the comparable group during the last twelve months because they sustained substantial property damage, business interruption, underwent large-scale capital projects or comparable results were otherwise not available.

When considering business interruption in the context of the Company's definition of comparable hotels, any hotel that had completely or partially suspended operations on a temporary basis at any point during the six months ended June 30, 2020 as a result of the COVID-19 pandemic was considered to be part of the definition of comparable hotels. Despite these temporary suspensions of hotel operations, Hilton believes that including these hotels within occupancy, average daily rate and revenue per available room, reflects the underlying results of the business for the three and six months ended June 30, 2020.

Occupancy

Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable average daily rate pricing levels as demand for hotel rooms increases or decreases.

Average Daily Rate ("ADR")

ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures average room price attained by a hotel, and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the Company is able to generate by type of customer, as changes in rates charged to customers have a different effect on overall revenues and incremental profitability than changes in occupancy, as described above.

Revenue per Available Room ("RevPAR")

RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of the Company's performance as it provides a metric correlated to two primary and key drivers of operations at a hotel or group of hotels, as previously described: occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods for comparable hotels. References to RevPAR, ADR and occupancy throughout this press release are presented on a comparable basis, and references to RevPAR and ADR are presented on a currency neutral basis, unless otherwise noted. As such, comparisons of these hotel operating statistics for the three and six months ended June 30, 2020 and 2019 use the exchange rates for the three and six months ended June 30, 2020, respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200806005083/en/

SOURCE: Hilton Worldwide Holdings Inc.

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