| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 21 | 44.8x | 17.8x | Bottom tier | |
Growth | 52 | 8.7% | 7.1% | Around median | |
Quality | 84 | 30.4% | 4.5% | Top tier | |
Safety | 44 | 4.2x | 2.6x | Around median | |
Capital Return | 28 | 0.20% | 2.12% | Bottom tier | |
Momentum | 61 | 12.0% | 2.9% | Around median | |
Sentiment | 88 | 16 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Hilton Worldwide Holdings Inc. operates a global hotel network through brands including Hilton, Waldorf Astoria, Conrad, Hampton, Home2 Suites, Tru, Curio, Graduate, and Spark. Its model relies primarily on management, franchise, and licensing fees within an asset-light structure; management and franchise fees grew 6.4% year over year in Q2 FY2026. The expansion of the network supports this growth by adding new rooms, increasing revenue per available room, and connecting hotels to the Hilton Honors ecosystem and the company’s booking and distribution platforms.
In Q2 FY2026, revenue according to EDGAR data was approximately $3.3 billion, net income was $482 million, and diluted GAAP earnings per share were approximately $2.10; this resulted in a calculated net income margin of about 14.6%. Adjusted earnings per share were $2.29, matching analysts’ expectations, compared with $2.20 in the corresponding period, while adjusted EBITDA reached $1.054 billion, up 4.6% and exceeding the high end of the company’s guidance.
System-wide revenue per available room improved 3.9% year over year in Q2 FY2026, driven by increases of 5.7% in transient business travel, 3.7% in group travel, and 1.6% in transient leisure travel. Geographically, the metric grew 5.4% in the United States, 6.3% in Asia Pacific excluding China, and 4.3% in Europe, but declined by approximately 30% in the Middle East and Africa and 2.2% in China. On a last-twelve-month basis in 2026, Hilton recorded revenue of $12.5 billion and net income of $1.6 billion, compared with revenue of $12.0 billion and net income of $1.5 billion in FY2025.
Analysts have a consensus “Buy” rating with an average price target of $347.67, within a wide range of $312 to $379. The average is only approximately 2.9% below the 52-week range high of $358, while the highest target exceeds that high by approximately 5.9%; this distribution reflects optimism about growth, but also reveals meaningful disagreement regarding the impact of the Middle East, China, renovations, and guidance that was described on July 28, 2026 as below estimates.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
System-wide revenue per available room increased 3.9% year over year, driven by growth of 5.7% in transient business travel, 3.7% in group travel, and 1.6% in transient leisure travel. U.S. growth reached 5.4%, but management estimated that approximately 1.7 percentage points came from the World Cup and approximately 1 percentage point from an easier comparison. Adjusted EBITDA reached $1.054 billion, up 4.6%, while the company recorded adjusted earnings per share of $2.29. According to EDGAR, quarterly revenue was $3.3 billion and net income was $482 million.
Hilton opened more than 200 hotels comprising more than 24 thousand rooms in Q2 FY2026, up 50% from the previous quarter. It signed contracts for approximately 43 thousand rooms, increasing rooms under development to 541 thousand across more than 130 countries, with approximately half under construction. Conversions accounted for 36% of openings, and the company expects them to represent approximately 40% of FY2026 openings. Management targets net unit growth of between 6% and 7% in FY2026 and over the foreseeable future.
The company launched Undergraduate by Hilton in Q2 FY2026 as an upper-midscale brand targeting a broader range of college and university markets. The model supports new construction projects and conversions, and Hilton estimated its long-term potential at more than 400 hotels, while it remains complementary to the Graduate brand. Hilton AI Planner, which was launched in 2026, uses the company’s technology infrastructure to provide customers with more personalized planning tools. The same infrastructure supports the direct Navan connection announced in July 2026, which provides immediate access to availability, pricing, booking, and room content without some of the higher-cost distribution channels.
Automated analysis for informational purposes only — not investment advice.
The Middle East and Africa represent the clearest risk following an approximately 30% decline in revenue per available room in Q2 FY2026, with a high-single-digit to low-double-digit decline expected during FY2026. Management estimated the region’s impact on EBITDA and management fees at approximately $20 million during FY2026 and confirmed that the recovery path remains uncertain. In China, revenue per available room declined 2.2% because of lower group travel and continuing government restrictions, with a low-single-digit decline expected in FY2026. By contrast, the metric grew 6.3% in Asia Pacific excluding China, led by Japan and Korea.
Hilton expects system-wide revenue per available room growth of 3%–3.5% in FY2026, after raising the range, and approximately 4% in Q3 FY2026. It expects adjusted EBITDA of between $4.04 billion and $4.08 billion and adjusted earnings per share of between $8.89 and $9.01 for FY2026. It also aims to return approximately $3.5 billion to shareholders through share repurchases and dividends, with the guidance excluding the impact of future share repurchases. The company paid $0.15 per share in Q2 FY2026, totaling $34 million, and the board authorized the same quarterly dividend for Q3 FY2026.
The analyst consensus is “Buy,” with an average price target of $347.67, a high target of $379, and a low target of $312. The average target is approximately 2.9% below the 52-week range high of $358, while the highest target exceeds that high by approximately 5.9%. Optimism is supported by expected unit growth of between 6% and 7% and 541 thousand rooms under development. By contrast, the wide target range reflects the risks of declining revenue per available room in the Middle East and Africa and China, and the renovation impact exceeding $20–25 million on FY2026 EBITDA.
