Hilton Worldwide Holdings Inc. (HLT, NYSE)
Industry: Lodging
Annual report, fiscal year 2022



## Hilton 2022 YEAR IN REVIEW



## A MESSAGE FROM
CHRIS NASSETTA

“In 2022, our Hilton family of Team Members, owners and partners once again did their part to spread the light and warmth of hospitality around the world. As travel came roaring back, our more than 400,000 Team Members welcomed nearly 200 million guests into our hotels.”

Chris Nassetta, president & chief executive officer, Hilton



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## Table of Contents

## 3 Performance

Global Growth and Development
Our Network Effect
Organic Brand Growth
Growing Sustainably

## 6 Innovation

Delivering Solutions to Achieve Frictionless Travel
Showcasing the Importance of the Stay
Innovating Through Strategic Partnerships
Evolving the Definition of Wellness
Rewarding our Most Loyal Guests
Addressing the Future of Sustainable Travel

## 9 Workplace Culture

Diversity, Equity, Inclusion and Belonging
Thrive at Hilton
Development and Training
Awards and Recognition
Creating Engines of Opportunity







## 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. We build 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 proven 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.

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

These great products, along with reliable and friendly service, drive customer satisfaction and loyalty.

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

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

This further investment drives Hilton’s leading growth rate and robust pipeline around the world.

And, ultimately, the reinforcing nature of these activities generates strong financial performance for Hilton.



## GLOBAL



7,165 Properties
1,127,430 Rooms



2,821 Properties in Pipeline
19 Brands



In 2022, Hilton opened its 7,000th hotel worldwide, surpassed 150 million Hilton Honors members, and welcomed nearly 200 million guests.



## EUROPE, MIDDLE EAST AND AFRICA



643 Properties
137,880 Rooms

Opened more than one hotel every week across the region, including our 500th hotel in Europe. Introduced two new brands, Motto by Hilton and Embassy Suites by Hilton.

## AMERICAS



5,895 Properties 845,518 Rooms

Surpassed 200 hotels in the Caribbean and Latin America region and expanded our luxury portfolio in marquee destinations, with Conrad Hotels & Resorts opening in Nashville and Los Angeles, and Waldorf Astoria Hotels & Resorts properties opening in Washington DC and Cancun. Celebrated the first new build Motto by Hilton in New York City and opened the second Signia by Hilton in San Jose, California.



## ASIA PACIFIC



627 Properties 144,032 Rooms

Surpassed 600 hotels in Asia Pacific with the opening of Hilton Garden Inn Kyoto Shijo Karasuma, which also marked the brand’s debut in Japan. More than 10 luxury signings were announced in the region, including Waldorf Astoria properties in Sydney, Kuala Lumpur, and Hanoi.



## Organic Brand Growth

Over the last 15 years, Hilton has more than doubled its brand portfolio and number of rooms around the world organically, increasing our customer base and broadening our chain scale diversity.

In January 2023, Hilton launched its newest brand, Spark by Hilton, which provides a simple, reliable and comfortable stay for every guest, all at an accessible price. For developers, Spark by Hilton leverages an innovative conversion model to offer a compelling investment.





## Growing Sustainably

As one of the world’s largest hospitality companies, we recognize Hilton has a responsibility to protect the planet and support the communities we serve to ensure our hotel destinations remain vibrant and resilient for generations of travelers to come.

Hilton is committed to driving responsible travel and tourism globally while furthering positive environmental and social impact and sound governance across our operations and communities through our ESG strategy. Travel with Purpose.

Learn more about progress towards reducing our environmental footprint while increasing our social impact:

Travel With Purpose Report

Want to read more?
Check our 2022 Performance Stories

More Stories Here

## Performance Downloads

2022 10-K

2023 Proxy

Travel With Purpose Report



## Innovation

2022 marked the year travel came roaring back, but not without challenges.

Driven by our founding vision to fill the Earth with the light and warmth of hospitality, Hilton continued to propel the industry forward with smart, innovative solutions.

To meet travelers’ evolving needs, Hilton forged new strategic partnerships, expanded digital and customer-centric solutions, evolved the decades-old industry definition of wellness and rewarded our most loyal customers.





## Delivering Solutions to
Achieve Frictionless Travel

In 2022, people were seeking solutions to take the friction out of travel. Guests embraced Hilton’s portfolio-wide innovations, like Hilton Honors Digital Key, Digital Check-in, and Confirmed Connecting Rooms by Hilton. Updated booking filters on Hilton.com also made it easier to search for the right hotel to meet specific needs, including locating EV (Electric Vehicle) charging stations and pet-friendly hotels.




## Showcasing the
Importance of the Stay

To spotlight Hilton’s continued innovation and differentiation in the marketplace, the company launched its first global brand platform, “Hilton. For the Stay.” The platform places the hotel front and center, elevating the role of the importance of reliable, friendly stays to our guests.

## Innovating Through Strategic Partnerships

As the world began to travel again, Hilton partnered with leading brands to elevate the guest experience and address evolving traveler needs – from Mars Petcare to Voyager Space and Proof & Company. Each of these partnerships brought new value to travelers with new routines, from expanding onsite pet-friendly property offerings to designing the future of hospitality in space and redefining the beverage experience at Waldorf Astoria Peacock Alleys around the world.





## Evolving the Definition of Wellness

After two years of focusing on health, people re-emerged and are redefining what wellness means in their lives. This cultural shift has been the catalyst to an increased focus on wellness at Hilton, from the partnerships chosen, like Peloton and vegan-friendly Aesop, to on-property experiences, like sound or sleep therapy, mindful design and health-focused food and beverage menu options. As an industry-first, the partnership between Hilton and Peloton brought Peloton Bikes to nearly all Hilton’s U.S. hotels.




## Rewarding our Most
Loyal Guests

Today, there is a renewed appreciation for the basic tenet of hospitality: to feel cared for.

After Hilton Honors rolled out automatic upgrades to the Luxury, Lifestyle and Full Service brands in late 2021, in 2022 alone, more than 1.3 million Gold or Diamond members were awarded automatic upgrades ahead of check-in. In addition to upgrades, Hilton Honors members were encouraged to redeem their Points through Hilton Honors Experiences, which taps into travelers' thirst for unforgettable moments around the world. In 2022, Hilton Honors surpassed 150 million members and remains the fastest-growing hotel loyalty program.

## Addressing the Future of
Sustainable Travel

Both travel managers and event planners are seeking out companies, partners and venues that can help them achieve their ESG goals and help preserve the future of travel.

Hilton’s Meet with Purpose, a program created to help customers create meaningful change in both the attendee experience and the communities they visit, remained relevant and popular among customers. According to a co-branded Hilton and American Express Business Travel 2022 study, demand for sustainable and carbon neutral events and ESG reporting strengthened, globally. Hilton’s proprietary and award-winning reporting tool, LightStay, enables seamless delivery of that need.

Want to read more?
Check our 2022 Innovation Stories








## Workplace
Culture

Our people-first culture, which is rooted in creating a fully human experience at work for our Team Members, has defined Hilton’s growth and success in recent years and will define hospitality for decades to come.

We strive to be the most hospitable company in the world, and work to build a strong employee-centered culture that creates connectivity, camaraderie and trust, which then empowers our Team Members to deliver positive experiences to guests at our hotels.





## Diversity, Equity, Inclusion and Belonging

Diversity is at the core of who we are. We are committed to an equitable and inclusive workforce that represents the many different cultures, backgrounds and viewpoints.

We believe our workforce should represent the communities where we live and work, which is why we are committed to achieving global gender parity and 25 percent U.S. ethnic representation at our corporate leadership levels by the end of 2027.

Read More



## Thrive at Hilton

Thrive at Hilton is our Team Member value proposition designed to enable employees to grow and flourish in both their professional and personal lives. In 2022, we launched and enhanced programs to meet the changing need of today’s Team Members, including:

• Care for All, a global platform focused on caregiving for employees and their loved ones; and

• Wellthy, a caregiving concierge service that assists U.S., U.K. and Ireland Team Members working through the logistics of care.





## Development and Training

Our career development approach emphasizes customized experiences so that our Team Members can follow a training and career path best suited to their goals.

In 2022, we launched a partnership with Guild Education to provide our U.S. employees with a continuing education platform to help them pursue and attain their educational goals debt-free. This program complements our other programs such as Hilton University, General Manager (“GM”) Academy, and signature leadership development programs that focus on building effective leaders across the enterprise to grow our leadership bench strength.



## Awards and Recognition

We are proud to have consistently been recognized for our Hilton culture, with awards including:







• #1 Best Workplace for Women in the U.S. by Great Place To Work and Fortune, 4th year in a row

• #2 Best Company To Work for in the U.S. by Great Place To Work and Fortune, 8th year in a row on the Top 100 list

• #2 World’s Best Workplace by Great Place To Work, 7th year in a row on the Top 25 list and the only hospitality company; #1 Best Workplace in Argentina, China, France, Peru, Portugal, and Uruguay

• #3 Best Workplaces for Parents in the U.S. by Great Place To Work

• Ranked as a Great Place To Work in 29 other countries across the globe and certified in 25 countries



• Following our placement as #1 in 2021, an induction into DiversityInc's Hall of Fame for the Top Companies for Diversity and #1 for ESG and ERGs

• A global sustainability leader on the Dow Jones Sustainability Indices for the sixth consecutive year



• A Gold Medal designee by EcoVadis, the world’s largest and most trusted provider of business sustainability ratings



• Military Friendly Employer with Gold distinction, Veteran Magazine Best of the Best Veteran Friendly Company



• Military Times Best for Vets #14 (Overall) and #1 (Hospitality)



• Secured a 100 percent rating in the Corporate Equality Index from the Human Rights Campaign for our commitment to corporate policies, practices and benefits pertinent to LGBTQ+ employees for the ninth consecutive year

Click here for a full list of our awards.






## Creating Engines of Opportunity

Hilton aims to be an engine of opportunity for our Team Members and the communities where we operate. As a business of people serving people, we connect people around the world with immediate support and long-term career opportunities that change lives. We are focused on creating a culture that serves our Team Members – from empowering them to bring their full selves to work to creating opportunities for all in our communities.

## In 2022...

as part of our Travel With Purpose goal to create 5 million learning and career opportunities with a focus on underrepresented groups by 2030, we expanded our existing commitment with the Tent Coalition for Refugees to hire an additional 1,500 refugees over the next three years across the U.S.

## Since 2017...

our Team Members have contributed more than 2.1 million volunteer hours in local communities, including nearly 345,000 hours during our 2022 Travel with Purpose Week in partnership with the Hilton Global Foundation.

## Since 2014...

we have leveraged our Team Member Assistance Fund (TMAF) to provide urgent monetary support to Team Members impacted by disasters, crisis and personal hardship instances. To date, the TMAF has contributed over $3 million to more than 3,600 Team Members.



# 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 18, 2023

## 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
Former Chief Executive Officer,
Bloomin' Brands; Chair of the Atlanta
Federal Reserve Board

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

Shaping Global Business
Learn more about Hilton’s Leadership Team
Executive Bios

PLEASE VIEW OUR FULL REPORT ONLINE
stories.hilton.com/2022