Hilton Closes Out 2024 with Record Levels of Growth, Opening More Rooms than Any Year in its History

Rhea-AI Summary

Hilton achieved record growth in 2024, adding 973 hotels and nearly 100,000 rooms, marking a 7.3% net unit growth. The company signed over 1,430 new hotels representing 154,000 rooms, expanding its pipeline to approximately 3,600 hotels with more than 498,500 rooms - an 8% year-over-year increase.

Construction began on 88,500 rooms in 2024, the highest level in Hilton's history. The company now accounts for one in five hotel rooms under construction globally. Notable developments include the addition of lifestyle brands Graduate by Hilton and NoMad, partnership with Small Luxury Hotels of the World, and the expansion of Spark by Hilton which surpassed 100 trading hotels. The company now operates in 140 countries and territories, welcoming 224 million guests in 2024.

Positive

• Record addition of 973 hotels and 100,000 rooms in 2024
• 7.3% net unit growth
• Pipeline increased 8% YoY to 498,500 rooms
• Record construction starts on 88,500 rooms
• Expansion to 140 countries and territories
• 224 million guests served in 2024

Negative

• None.

Insights

Financial Growth Analyst

Hilton's 2024 performance represents an extraordinary operational achievement that positions the company for sustained market leadership. The 7.3% net unit growth significantly outpaces the industry average of 4-5%, while controlling 20% of global rooms under construction demonstrates remarkable development momentum.

The strategic expansion carries multiple revenue catalysts: First, the luxury portfolio expansion through SLH partnership and planned Waldorf Astoria openings targets the high-margin luxury segment where RevPAR (Revenue Per Available Room) typically exceeds mid-scale properties by 2-3x. Second, the rapid scaling of Spark by Hilton with 100+ properties shows successful penetration of the premium economy segment, capturing value-conscious travelers without cannibalizing existing brands.

The development pipeline of 498,500 rooms represents approximately 35% of Hilton's current room count, providing clear visibility into future growth. Construction starts of 88,500 rooms in 2024 indicate strong owner confidence and suggest minimal conversion risk. The geographic expansion into new markets like Paraguay and Nepal, bringing total presence to 140 countries, reduces regional concentration risk while capturing emerging market growth.

The record 224 million guests served in 2024 demonstrates strong demand fundamentals and effective distribution capabilities. With projected 6-7% net unit growth for 2025, Hilton maintains a disciplined yet aggressive expansion strategy that should drive sustainable revenue growth and market share gains.

Strategic Development Analyst

Hilton's multi-brand strategy execution in 2024 reveals sophisticated portfolio optimization that targets key growth vectors in the hospitality market. The simultaneous expansion across luxury (Waldorf Astoria, Conrad), lifestyle (Graduate, NoMad) and premium economy (Spark) segments creates a comprehensive market coverage that maximizes revenue capture across price points and guest preferences.

The SLH partnership represents a capital-light approach to luxury expansion, instantly adding hundreds of properties without significant investment. This complements the traditional development of flagship properties like Waldorf Astoria, creating a two-pronged luxury growth strategy that accelerates market penetration while maintaining brand exclusivity.

The rapid success of Spark by Hilton, achieving 100+ properties within 16 months of launch, validates the premium economy segment strategy and demonstrates Hilton's ability to scale new brands efficiently. The international expansion of Spark into the UK, Canada and Austria suggests strong franchisee acceptance and potential for global scalability.

The development pipeline composition reflects strategic prioritization of high-growth segments and markets, with luxury and lifestyle brands representing significant growth opportunities. The planned 2025 openings across multiple continents indicate effective risk distribution and market diversification.

Company signs a record 154,000 rooms in 2024, positioning Hilton for continued strong growth with momentum across all categories

MCLEAN, Va.--(BUSINESS WIRE)-- In a year in which Hilton announced new strategic partnerships and acquisitions and accelerated hotel development worldwide, the company set historic records for growth. Hilton added 973 hotels and nearly 100,000 rooms in 2024, the single biggest increase in rooms in Hilton’s more than 100-year history, achieving net unit growth of 7.3%.

Hilton also strengthened its development pipeline, signing more than 1,430 hotels representing 154,000 rooms in 2024. The company’s pipeline now stands at roughly 3,600 hotels totaling more than 498,500 rooms, a year-over-year increase of 8% in pipeline rooms.

In 2024, construction started on 88,500 rooms, excluding acquisitions and partnerships, the highest level of construction starts in Hilton’s history. Hilton continues to have more new rooms under construction than any other hotel company with approximately one in every five hotel rooms under construction globally slated to join the company’s portfolio.

“We’re incredibly proud of our growth last year, driven by the performance of our brands and our team’s commitment to delivering the very best stays for our guests and impressive returns for owners,” said Chris Nassetta, president and CEO, Hilton. “Given the strength of our commercial engines, family of brands, and global network, we continue to feel good about our growth this year. Our development pipeline and construction starts are strengthening around the world, and demand for travel remains strong, leading to increased confidence in our expectations for net unit growth of 6-7% in 2025.”

Hilton’s growth has been bolstered by a number of global milestones, meeting guest demand in new locations and market segments for Hilton.

• Lifestyle brands Graduate by Hilton and NoMad joined Hilton’s portfolio in spring 2024, expanding Hilton’s new development opportunities in university communities and growing luxury markets around the world.
• The launch of an exclusive partnership with Small Luxury Hotels of the World (SLH) added hundreds of independently minded luxury hotels to Hilton’s luxury portfolio, which continues to be anchored by the Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, LXR Hotels & Resorts and Signia by Hilton brands. With more than 500 hotels worldwide, Hilton’s luxury portfolio is now one of the largest in the industry with additional marquee openings slated for this year to include Waldorf Astoria New York, Waldorf Astoria Costa Rica Punta Cacique, Waldorf Astoria Shanghai Qiantan, Waldorf Astoria Osaka, Waldorf Astoria Morocco Rabat Sale, Conrad Hamburg, Conrad Athens and Signia by Hilton Amman.
• Spark by Hilton, which continues to define the premium economy segment, opened its first hotel in September 2023 and has now surpassed 100 trading hotels, including locations in the UK, Canada and Austria, with plans to further expand the brand in new markets around the world.
• Long-stay brand LivSmart Studios by Hilton, launched in 2023, expects to open its first hotel this summer in Kokomo, Indiana, with hundreds more in various stages of negotiation.

“Our diversified and strategic approach to development continues to generate robust growth, bringing us closer to our goal of serving any guest, for any stay occasion, anywhere in the world,” said Kevin Jacobs, CFO and president, global development, Hilton. “Signings and construction starts increased meaningfully in 2024, giving us great momentum heading into the new year. With approximately half a million rooms in our development pipeline, coupled with favorable supply and demand fundamentals more broadly and a growing global middle class, we’re confident in our ability to deliver sustained growth in 2025 and beyond.”

Hilton has more than 8,400 properties trading worldwide. The company debuted its brands in several new markets in 2024, including Paraguay, Nepal and Bonaire, bringing the total number of countries and territories where Hilton operates to 140. Hilton also welcomed more than 224 million guests to its properties last year, more than any year in its history.

More information on the latest exciting openings slated across Hilton’s global network in 2025 is available here.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, future financial results, liquidity and capital resources and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "forecasts," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks inherent to the hospitality industry; macroeconomic factors beyond our control, such as inflation, changes in interest rates, challenges due to labor shortages or disputes and supply chain disruptions; the loss of key senior management personnel; competition for hotel guests and management and franchise contracts; risks related to doing business with third-party hotel owners; performance of our information technology systems; growth of reservation channels outside of our system; risks of doing business outside of the U.S.; risks associated with conflicts in Eastern Europe and the Middle East and other geopolitical events; and our indebtedness. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I—Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which is filed with the Securities and Exchange Commission (the "SEC") and is accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 24 world-class brands comprising more than 8,400 properties and over 1.25 million rooms, in 140 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 3 billion guests in its more than 100-year history, was named the No.1 World's Best Workplace by Great Place to Work and Fortune and has been recognized as a global leader on the Dow Jones Sustainability Indices. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the more than 200 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on Facebook, X, LinkedIn, Instagram and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127975198/en/

Jake Woodley

Hilton

jake.woodley@hilton.com

Source: Hilton

FAQ

What was Hilton's (HLT) room growth rate in 2024?

Hilton achieved a net unit growth of 7.3% in 2024, adding 973 hotels and nearly 100,000 rooms.

How many new rooms did Hilton (HLT) sign in 2024?

Hilton signed more than 1,430 hotels representing 154,000 rooms in 2024.

What is Hilton's (HLT) projected net unit growth for 2025?

Hilton expects net unit growth of 6-7% in 2025.

How many hotels are in Hilton's (HLT) development pipeline as of 2024?

Hilton's development pipeline stands at roughly 3,600 hotels totaling more than 498,500 rooms.

How many guests did Hilton (HLT) serve in 2024?

Hilton welcomed more than 224 million guests to its properties in 2024, the highest in its history.