Hilton Worldwide Holdings Inc. (HLT, NYSE)
Industry: Lodging
Annual report, fiscal year 2023



Hilton 2023 YEAR IN REVIEW



## A Message from
Chris Nassetta

"With travel booming in 2023, our incredible team members, dedicated owners, and trusted partners delivered another exceptional year of hospitality for our guests all over the world."

CHRIS NASSETTA, PRESIDENT & CHIEF EXECUTIVE OFFICER, HILTON



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## Table of Contents

## 3 Performance

Global Growth and Development

Our Network Effect

A Brand for Every Stay

A Powerful Growth Engine

## 6 Innovation

Satisfying the Thirst for Adventure and Experiences

Changing the Landscape of Universal EV Charging

Addressing the Rising Importance of Wellness Travel

Rewarding our Loyal Guests

Reducing the Friction of Travel

## 9 Workplace Culture

Wellbeing, Flexibility and Care for All

Career Growth and Development

Inclusive Workplace Culture

Engines of Opportunity and a Better World for Travel

Awards and Recognition

## 13 Stockholder Information










## Performance

## Global Growth and Development

Hilton’s proven growth strategy and network effect continues to deliver results that strengthen the company’s position for the future.

Hilton builds our business and guest loyalty through a virtuous cycle of geographic growth, tailored brand expansion and chain-scale diversification to serve any guest for any stay occasion, anywhere in the world.





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## A Message from Kevin Jacobs

“Our resilient, fee-based business model and strong network effect continued to power Hilton’s engine of opportunity for our owners, shareholders, partners, and team members.”

KEVIN JACOBS, CHIEF FINANCIAL OFFICER & PRESIDENT, GLOBAL DEVELOPMENT, HILTON

## Our Network Effect

Hilton's scale, global presence and leading brands at multiple price points drive a network effect delivering industry-leading performance.

Leading Brands: It starts with our award-winning brands that allow us to serve any guest, anywhere in the world, for any stay occasion.

Satisfied, Loyal Customers: These great products, along with reliable and friendly service, drive customer satisfaction and loyalty.

Premium Market Share: Our focus on product, service and loyalty generates an industry-leading RevPAR premium.

Satisfied Owners: In turn, we create strong financial returns for our hotel owners who invest further in growing our brands.

Hotel Supply & Pipeline: This further investment drives Hilton's strong growth and robust pipeline around the world.

HLT Performance: And, ultimately, the reinforcing nature of these activities generate strong financial performance for Hilton.



## Global

In 2023, Hilton welcomed more than 213 million guests, opened more than a hotel per day on average, and surpassed 180 million Hilton Honors members worldwide.



7,530 Properties



3,274 Hotels in Pipeline
1,182,937 Rooms



22 Brands

## The Americas

Opened 200 hotels, continuing Hilton’s expansion in marquee destinations. Debuted Embassy Suites by Hilton Aruba Resort, the brand's first hotel on the island; added the 1,060-room Hilton Boston Park Plaza; opened the first Hampton by Hilton in Ecuador; and expanded all-inclusive offerings with the opening of Hilton Cancun Mar Caribe All-Inclusive Resort.



6,083 Properties



871,189 Rooms



## Europe, Middle East and Africa

Opened more than one hotel every week across the region, including our first hotels in Monaco, Tunisia, and the Democratic Republic of the Congo. Announced the signing of the region's first Home2 Suites by Hilton hotel.



686 Properties



145,853 Rooms



## Asia Pacific

Surpassed 700 properties in Asia Pacific, with 12 brands now represented across the region, and opened our 600th hotel in Greater China. Nearly one in four hotel rooms under construction in Asia Pacific are slated to be a Hilton brand.



761 Properties



165,895 Rooms



## A Brand for Every Stay

With the additions of Spark by Hilton and LivSmart Studios by Hilton in 2023, Hilton’s brand portfolio spans from luxury to premium economy and long-stay categories, broadening our chain scale diversity and ensuring we can serve even more guests, for any stay occasion, anywhere they want to be.

We debuted Tempo by Hilton Times Square, the first hotel for the brand; Signia by Hilton Atlanta, the brand's flagship and first new-build property; and Spark by Hilton Mystic Groton, the fastest announcement-to-market brand in Hilton history. We also opened the 150th Curio Collection by Hilton, the 250th Tru by Hilton, and the 1,000th Hilton Garden Inn.





## A Powerful Growth Engine

With the addition of nearly 1,000 future hotels to the pipeline in 2023, Hilton now has a record of nearly 3,300 hotels in development, totaling more than 462,000 rooms. Roughly 1 in 5 hotel rooms under development globally are slated to fly a Hilton flag, and we maintain the largest under construction pipeline of any global hotel company.

Hilton also marked a decade of fast-paced growth since our initial public offering (IPO) on the New York Stock Exchange on Dec. 11, 2013. Over this period, we delivered total shareholder returns of approximately 420% \( ^{*} \)  – outperforming major indices and industry averages.

*TOTAL SHAREHOLDER RETURN (TSR) CALCULATED FOR THE PERIOD DEC. 11, 2013-FEB. 29, 2024

Want to read more?
Check our 2023 Performance Stories

More Stories Here

## Performance Downloads

2023 10-K

2024 Proxy



## Innovation

2023 was the year the world moved forward.

Travelers filled airports, packed stadiums, reinvigorated restaurants and energized hotel lobbies, turning to travel to create deeper human connections. The new Golden Age of Travel we anticipated arrived in full force. As change accelerated, Hilton kept pace, leading the industry with new customer-driven strategic partnerships, digital solutions and innovative on-property experiences and products.





## Satisfying the Thirst for
Adventure and Experiences

In 2023, travelers accelerated their appetite for experiences over things. As travelers sought out once-in-a-lifetime moments, unique culinary offerings, events and cultural immersions, Hilton Honors rose to the occasion, offering exclusive access to some of the most sought-after events of 2023, including must-see intimate concerts, McLaren F1 Racing, and the Ryder Cup.

Hilton also partnered with world-class talent to drive food and beverage innovations and announced a first-of-its-kind partnership with the James Beard Foundation.




## Changing the Landscape
of Universal EV Charging

Searching for Electric Vehicle (EV) charging stations on Hilton.com proved to have the fastest volume growth in 2023, jumping from fourth to second highest in converting searches to stays. To address this growing demand, Hilton announced plans to install Tesla Universal Wall Connectors at approximately 2,000 hotels in North America, dramatically increasing EV charging accessibility for guests.

## Addressing the Rising
Importance of Wellness Travel

More than ever, travelers are prioritizing wellness. In 2023, Hilton announced the expansion of its industry-first partnership to place Peloton bikes in every hotel gym in Puerto Rico, Germany, the U.K. and in participating properties in Canada. Tempo by Hilton introduced an array of wellness offerings with its global debut, including guest rooms designed to help guests power up for the day and power down for a good night’s sleep, an innovative ‘Spirited’ and ‘Free-Spirited’ beverage program, and signature wellness rooms featuring Peloton bikes.





## Rewarding our Loyal Guests

Hilton Honors members received more than 2 million complimentary automatic room upgrades prior to arrival through the Hilton Honors app in 2023. Hilton Honors redemption points for Experiences soared, with year-over-year Point redemption up over 100% compared to the previous year. Furthermore, our partnership with American Express reached new heights with the introduction of the refreshed Hilton Honors American Express Surpass \( ^{®} \)  and Hilton Honors American Express Aspire Cards.



## Reducing the Friction of Travel

Hilton has a long-term commitment to digitally transform the travel experience while maintaining the human connections, relatability and personalization that guests crave. Hilton’s new Property Engagement Platform expedites transactions at the front desk, reducing guest wait times. We also introduced enhanced booking capabilities for small meetings; the Hilton Honors Elevator Unlock, which allows guests to automatically connect to and unlock elevators through the Hilton Honors app; and Hilton for Business, a new travel management program for small- and medium-sized businesses.







## Want to read more?

Check our 2023 Innovation Stories

More Stories Here



## Workplace Culture

Hilton is creating a full human experience at work through inclusion, wellness, growth and purpose.

When our team members bring their whole selves to work, they make the stay for our guests. Their hard work, dedication and open hearts are the reason why Hilton is a force for good in the world, and why in 2023 we were recognized as the No. 1 World’s Best Workplace by Great Place to Work and Fortune, the first hospitality company to receive this honor.





## Wellbeing, Flexibility and Care for All

Informed by feedback from our team members, Hilton launched and expanded industry-leading benefits that supports them and their families.

## In 2023, we:

• Released new, on-demand mental wellbeing resources as part of our Care for All caregiving initiative;

• Launched and expanded earned wage access and shift flexibility pilots with DailyPay and Work Jam, providing team members additional scheduling and financial flexibility; and

• Provided education, training, and resources on substance use disorder in partnership with Shatterproof.



## Career Growth and Development

At Hilton, we create opportunities where team members come for a job but stay for a career. To support all team members in expanding their careers, we offer innovative, best-in-class learning and development opportunities, including:

• Hilton University, with access to more than 25,000 courses and job certifications in several fields;

• LinkedIn Learning, offering software, creative, and business skills classes and certification courses;

• Debt-Free, Barrier-Free Education through Hilton’s industry-leading partnership with Guild; and

• Hilton Cares, a program announced in 2023 that will provide $500,000 in annual scholarships for team members and community members building careers in hospitality.





## Inclusive Workplace Culture

At Hilton, we remain steadfast in our commitment to create the best, most inclusive environment for our team members, guests, owners and communities. We are focused on attracting, developing and retaining the best and the brightest talent - from the property level to our corporate leadership - while increasing inclusion across our business. These perspectives sustain innovation, drive growth, and promote an inclusive environment for the diverse guest population and communities we serve.

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## Engines of Opportunity and a Better World for Travel

Hilton is committed to driving responsible travel and tourism globally through our ESG strategy, Travel with Purpose. We know that Hilton has a responsibility to protect the planet, ensure our hotel destinations remain vibrant and resilient for generations of travelers to come, and to be an engine of opportunity in the communities we serve by partnering with people and organizations that foster positive change. In 2023, the Hilton Global Foundation awarded a record $4.4+ million in grants towards organizations supporting career development, community resilience and environmental sustainability. Hilton was recognized on both the World and North America Dow Jones Sustainability Indices (DJSI) for the seventh consecutive year, remaining the only hospitality company on the lists.










## Awards and Recognition

In 2023, Hilton was named the No 1. World’s Best Workplace. Since 2016, Hilton has been awarded over 450 “Great Place to Work” rankings and other awards, including:





• #1 Workplace in Argentina, Austria, China, Dominican Republic, France, India, Italy, Peru, Portugal, Switzerland and Uruguay

• #2 Best Workplace in the U.S. by Great Place to Work and Fortune, 8th consecutive year on the Top 100 list

• #3 Best Workplace in China and #2 best workplace in Asia

• #3 Best Workplace in Europe by Great Place to Work and Fortune



• Ninth consecutive year with Human Rights Campaign Corporate Equality Index of 100%



• Fifth consecutive year as #1 Workplace for Women in the U.S.



• #4 Best Workplace for Millennials in the U.S., sixth consecutive year on the list

## FAIR360

• Member of the Fair360 Hall of Fame



• #1 Top Company for Employee Resource Groups by Fair 360



• #1 Top Company for People with Disabilities (PWD) by Fair360



• Named a 2023 US PEOPLE Companies that Care

Click here for a full list of our awards.

Want to read more?
Check our 2023 Workplace Culture Stories



## Stockholder Information

Stock Market Information
Ticker Symbol: HLT
Market Listed and Traded: NYSE

Corporate Office Contact
Hilton
7930 Jones Branch Drive
McLean, Virginia 22102

+1 703 883 1000
www.hilton.com/corporate

Investor Relations Contact
7930 Jones Branch Drive
McLean, Virginia 22102

+1 703 883 5476
ir.hilton.com
ir@hilton.com

Independent Registered Public Accounting Firm Contact
Ernst & Young LLP
1775 Tysons Boulevard
Tysons, Virginia 22102

+1 703 747 1000
ey.com

Transfer Agent Contact
EQ Shareowner Services
P.O. Box 64874
St. Paul, Minnesota 55164-0874

+1 800 468 9716
www.shareowneronline.com

Annual Meeting of Stockholders
May 15, 2024

## Board of Directors

CHRISTOPHER J. NASSETTA
President, Chief Executive Officer & Director, Hilton

JONATHAN D. GRAY
Chairman of the Board of Directors,
Hilton; President & Chief Operating
Officer, Blackstone

CHARLENE T. BEGLEY
Former Senior Vice President & Chief Information Officer, General Electric; Former President & Chief Executive Officer of Home and Business Solutions, General Electric
CHRIS CARR
Former Chief Operating Officer,
Sweetgreen

MELANIE L. HEALEY
Former Group President, The Procter & Gamble Company

RAYMOND E. MABUS, JR.
United States Secretary of the Navy
2009-2017; Former Governor of
Mississippi; Former U.S. Ambassador to
the Kingdom of Saudi Arabia
JUDITH A. MCHALE
President & Chief Executive Officer,
Cane Investments; Former President &
Chief Executive Officer, Discovery
Communications

ELIZABETH A. SMITH
Executive Chair, Revlon; Former Chief
Executive Officer, Bloomin' Brands

DOUGLAS M. STEENLAND
Former Chief Executive Officer,
Northwest Airlines; Lead Independent
Director, American International Group