Hilton Worldwide Holdings Inc. (HLT), a leading global hospitality company with a portfolio of 14 world-class brands comprising more than 5,000 properties with over 825,000 rooms in 103 countries and territories reported exceptional second quarter fiscal results.

The company's portfolio includes Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations.

Second Quarter 2017 vs. Second Quarter 2016 Actual Results

• Diluted EPS from continuing operations: UP 75.9% to $0.51.
• Income from continuing operations, net of taxes: UP 67% to $167 million.
• Adjusted EBITDA: UP 26% to $519 million.
• Comparable RevPAR: UP 1.8%
• Net Room Growth: UP 30% to 13,400 net rooms.
• New rooms for development: UP 15% from the same period a year ago.

Second Quarter Balance Sheet and Liquidity

• Long-term debt outstanding of $6.7 billion, excluding deferred financing costs and discount, with a weighted average interest rate of 4.1 percent.
• Total cash and cash equivalents of $909 million including $125 million of restricted cash and cash equivalents.
• No borrowings were outstanding under the $1.0 billion revolving credit facility.
• Repurchased 4.5 million shares of common stock at a cost of approximately $282 million at an average price per share of $63.31. Since repurchases began in March 2017 through July 2017, Hilton has repurchased 6.8 million shares for approximately $425 million.
• Paid a quarterly cash dividend of $0.15 per share on shares of its common stock, for a total of $49 million. In July 2017, Hilton's board of directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on or before September 29, 2017 to holders of record of its common stock as of the close of business on August 18, 2017.

2017 Guidance

• Raised Adjusted EBITDA guidance for full year 2017 to between $1,880 million and $1,920 million, an increase of $20 million at the midpoint.
• Raised cash available for capital return guidance for full year 2017 to between $1.0 billion and $1.1 billion, an increase of $100 million at the midpoint.
• Expects system-wide RevPAR to increase between 1.0 percent and 3.0 percent on a comparable and currency neutral basis.
• Projects diluted EPS, before special items, to be between $1.61 and $1.68 and diluted EPS, adjusted for special items, to be between $1.78 and $1.85.
• Projects net income to be between $534 million and $559 million.
• Projects management and franchise fee revenue to increase from 8% to 10% on a pro forma basis.
• Expects capital expenditures, excluding amounts reimbursed by hotel owners, to be between $150 million and $200 million.
• Projects general and administrative expenses to be between $430 million and $440 million, including approximately $30 million of transaction-related costs.
• Expects net unit growth to be approximately 50,000 - 55,000 rooms.

Development In Second Quarter of 2017

• opened 107 hotels consisting of 15,600 rooms, achieving net unit growth of 13,400 rooms, which is nearly 30 percent higher than in the second quarter of 2016.
• development pipeline, as of June 30, 2017, totaled approximately 332,000 rooms at 2,153 hotels throughout 104 countries and territories, including 36 countries and territories where Hilton does not currently have any open hotels. Of the rooms in the pipeline, 169,000 rooms, or more than half of the pipeline, were located outside the U.S., and over 169,000 rooms were under construction.
• opened the first Tapestry Collection by Hilton in Syracuse, New York in May 2017, just four months after the brand's launch, and as of July 2017, 78 Tapestry hotels were in the pipeline or in various stages of approval.
• opened its first three Tru by Hilton, which launched in 2016.
• As of July 2017, had 420 hotels in the pipeline or in various stages of approval.

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said in the company's press release:

"We had another successful quarter, exceeding the high end of our guidance for Adjusted EBITDA and diluted EPS, adjusted for special items, and as a result, we are increasing our full year outlook, including our expectations for capital return.

Fundamentals remain largely stable around the world, and we maintain our expectations for full year RevPAR growth of 1.0 percent to 3.0 percent.

Development activity continues to be strong with nearly 1 in 4 rooms under construction globally set to become part of our portfolio. Additionally, we expect to increase our luxury distribution by approximately 15 percent this year, including openings in the quarter, such as the Waldorf Astoria Beverly Hills, Conrad Osaka, Conrad Guangzhou and Conrad San Luis Potosi."