How Does Hilton Make its Money?
Hilton Worldwide Holdings is one of the world’s largest and fastest-growing hospitality companies, operating 24 brands across nearly 8,000 properties in 126 countries and territories. The company’s portfolio ranges from luxury (Waldorf Astoria, Conrad) to economy (Spark by Hilton). Hilton operates an asset-light franchise model — approximately 99% of its rooms are franchised or managed rather than owned — which generates high-margin, recurring fee revenue. The Hilton Honors loyalty program, with over 190 million members, is a key competitive advantage driving direct bookings.
Hilton (HLT) Business Model
Hilton operates in the hospitality sector. Below is a summary of Hilton’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Hilton’s 2024 fiscal year filings with the SEC.
Hilton Competitors
Hilton’s key competitors and comparable public companies in the hospitality sector include Marriott, Booking Holdings, Airbnb, and Disney. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Hilton stacks up by comparing their revenue breakdown, margins, and growth metrics.
Hilton Competitors
Hilton’s key competitors and comparable public companies in the hospitality sector include Marriott, Booking Holdings, Airbnb, and Disney. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Hilton stacks up by comparing their revenue breakdown, margins, and growth metrics.
Hilton Competitors
Hilton’s key competitors and comparable public companies in the hospitality sector include Marriott, Booking Holdings, Airbnb, and Disney. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Hilton stacks up by comparing their revenue breakdown, margins, and growth metrics.
Hilton Competitors
Hilton’s key competitors and comparable public companies in the hospitality sector include Marriott, Booking Holdings, Airbnb, and Disney. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Hilton stacks up by comparing their revenue breakdown, margins, and growth metrics.
Hilton Competitors
Hilton’s key competitors and comparable public companies in the hospitality sector include Marriott, Booking Holdings, Airbnb, and Disney. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Hilton stacks up by comparing their revenue breakdown, margins, and growth metrics.
Hilton Competitors
Hilton’s key competitors and comparable public companies in the hospitality sector include Marriott, Booking Holdings, Airbnb, and Disney. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Hilton stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Franchise & Licensing Fees | $3,100 | $2,700 | +14.8% |
| Management Fees (Base + Incentive) | $1,500 | $1,300 | +15.4% |
| Owned & Leased Hotels | $1,200 | $1,100 | +9.1% |
| Other Revenue | $5,500 | $5,100 | +7.8% |
| Total Revenue | $11,300 | $10,200 | +10.8% |
Franchise & Licensing Fees — 27% of Revenue
Management Fees (Base + Incentive) — 13% of Revenue
Owned & Leased Hotels — 11% of Revenue
Other Revenue — 49% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $11,300 | $10,200 |
| Cost of Revenue | $6,500 | $6,000 |
| Gross Profit | $4,800 | $4,200 |
| Operating Expenses | $1,600 | $1,500 |
| Operating Income | $3,200 | $2,700 |
| Net Income | $1,700 | $1,500 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 42.5%
- Operating Margin: 28.3%
- Revenue Growth: 10.8%
Is Hilton Profitable?
Yes, Hilton is profitable. The company reported net income of $1,700 on total revenue of $11,300. With an operating margin of 28.3%, Hilton demonstrates solid profitability for the hospitality sector. The gross margin of 42.5% reflects Hilton’s pricing power and cost structure.
What to Watch
- Net unit growth pace as Hilton targets 7-8% annual room additions
- RevPAR growth trajectory amid global travel normalization
- Loyalty program membership growth and direct booking mix
- Expansion of new brands, particularly Spark by Hilton in the economy segment
Hilton (HLT) Financial Summary
Hilton (HLT) is a hospitality company that generated $11,300 in total revenue in fiscal year 2024. Revenue grew 10.8% year-over-year. The company earned $1,700 in net income, making it profitable. For a deeper look at Hilton’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.