2017 Annual Report

Our Performance

Tru by Hilton McDonough

Our Key

Strategic Priorities


ALIGN CULTURE & ORGANIZATION

STRENGTHEN
BRANDS &
COMMERCIAL
SERVICES PLATFORM


EXPAND GLOBAL FOOTPRINT


MAXIMIZE PERFORMANCE

Waldorf Astoria Ras Al Khaimah

Align

Culture & Organization

  • Continued to attract the best talent with unique benefits, including parental leave, adoption assistance, Thrive@Hilton Sabbatical programs, and the Go Hilton Team Member Travel Program.
  • Expanded the Operation: Opportunity Commitment to hire an additional 20,000 U.S. veterans, spouses, dependents and caregivers by the end of 2020, expanding on the 10,000 hired since 2013.
  • Launched Thrive@Hilton, in partnership with Thrive Global, to expand of our "people framework" and transform the way our people work and lead by ensuring they can focus on what matters most.
Embassy Suites by Hilton Dorado del Mar Beach Resort

Hilton Has Been Recognized as

#9

World’s Best Workplace

Most Admired
Companies
 

100 Corporate Equality Index Score

Forbes

The Just 100:
America’s Best
Corporate Citizens

Top 50 for Diversity

Waldorf Astoria Shanghai On The Bund

Strengthen

Brands & Commercial Services Platform

Hilton Honors has the highest-rated travel app

  • Downloaded every 8 seconds.
  • Enables more than 1.3 million digital check-ins per month.
  • Allows guests to select a room and use their phone as a Digital Key at more than 2,500 hotels globally.

Strategically adding new brands: With more than 500 hotels open or in various stages of development, Tru by Hilton continues to be the most successful brand launch in industry history. Our collection brands, Curio Collection by Hilton and the new Tapestry Collection by Hilton, are expected to double their presence within the next two years.

West Hotel Sydney, Curio Collection by Hilton

Expand

Global Footprint

Signed more than 100,000
ROOMS, growing pipeline to a record nearly
2,300 PROPERTIES with
345,000 ROOMS, representing an eight percent increase in our U.S. pipeline and a 15 percent increase internationally.
Opened 399 PROPERTIES,
expanding footprint to
105 countries and territories.
Account for 21 percent of rooms under construction — the largest share in the industry.

Hampton by Hilton Chengdu Waishuangnan

Maximize

Performance

We are a resilient, fee-driven business with a disciplined strategy that is focused on growing market share, organic unit growth and free cash flow per share, preserving our strong balance sheet and accelerating return of capital.

Year-Over-Year Growth

2016-2017

Net Unit Growth (ROOMS)
 

6.5%

Rooms in Pipeline

11%

EPS
Adjusted for special items

27%*

Top line 2017 – RevPar

2.5%

Adjusted EBITDA

+11% to  $1,965M*

This report 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 our expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements. You can identify these forward- looking statements 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 inherent to the hospitality industry, macroeconomic factors beyond our control, competition for hotel guests and management and franchise contracts, risks related to doing business with third-party hotel owners, performance of our information technology systems, growth of reservation channels outside of our system, risks of doing business outside of the United States and our indebtedness, as well as those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, as such factors may be updated from time to time in our 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 report and in our filings with the SEC. We undertake 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.

For more information, including a reconciliation of Adjusted EBITDA to financial measures derived in accordance with United States generally accepted accounting principles, please refer our Q4 & Full Year 2017 Earnings Release.