Hilton Results

Hilton Reports First Quarter 2019 Results, Expands Brand Portfolio

Hilton

Hilton Worldwide Holdings Inc. (NYSE: HLT) today reported its first quarter 2019 results. Highlights include:

  • Diluted EPS was $0.54 for the first quarter, a 6 percent increase from the same period in 2018, and diluted EPS, adjusted for special items, was $0.80, a 16 percent increase from the same period in 2018
  • Net income for the first quarter was $159 million, a 2 percent decrease from the same period in 2018
  • Adjusted EBITDA for the first quarter was $499 million, an increase of 12 percent from the same period in 2018 and exceeding the high end of guidance
  • System-wide comparable RevPAR increased 1.8 percent on a currency neutral basis for the first quarter from the same period in 2018
  • Approved 29,300 new rooms for development during the first quarter, growing Hilton's development pipeline to over 371,000 rooms as of March 31, 2019
  • Opened 12,100 rooms in the first quarter, contributing to 10,000 net additional rooms, on track to deliver approximately 6.5 percent net unit growth for the full year
  • Launched a new meetings-and-events-focused brand, Signia Hilton
  • In February 2019, Hilton's board of directors authorized an additional $1.5 billion for share repurchases under its stock repurchase program
  • Repurchased 3.9 million shares of Hilton common stock during the first quarter, bringing total capital return, including dividends, to approximately $340 million for the quarter
  • Full year 2019 system-wide RevPAR is expected to increase between 1.0 percent and 3.0 percent on a comparable and currency neutral basis compared to 2018; full year net income is projected to be between $881 million and $910 million; full year Adjusted EBITDA is projected to be between $2,265 million and $2,305 million
  • Full year 2019 capital return is projected to be between $1.3 billion and $1.8 billion

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We are happy to report a good start to the year with first quarter results that exceeded the high end of guidance for Adjusted EBITDA and diluted EPS, adjusted for special items. We continued to drive impressive market share gains across all brand segments and regions during the first quarter, further increasing our industry-leading RevPAR index premium. We were also excited to launch our newest brand, Signia Hilton. We expect this dynamic and innovative brand to change the meetings and events space and enable us to better serve our guests and owners."

For the three months ended March 31, 2019, system-wide comparable RevPAR grew 1.8 percent, driven by increases in both ADR and occupancy. Management and franchise fee revenues increased 12 percent during the three months ended March 31, 2019 as a result of RevPAR growth of 1.7 percent at comparable managed and franchised hotels, increased licensing and other fees and the addition of new properties to Hilton's portfolio.

For the three months ended March 31, 2019, diluted EPS was $0.54 and diluted EPS, adjusted for special items, was $0.80 compared to $0.51 and $0.69, respectively, for the three months ended March 31, 2018. Net income and Adjusted EBITDA were $159 million and $499 million, respectively, for the three months ended March 31, 2019, compared to $163 million and $445 million, respectively, for the three months ended March 31, 2018.

Development

In the first quarter of 2019, Hilton opened 85 new hotels totaling 12,100 rooms and achieved net unit growth of 10,000 rooms, a 41 percent increase from the same period in 2018.

As of March 31, 2019, Hilton's development pipeline totaled nearly 2,480 hotels consisting of over 371,000 rooms throughout 108 countries and territories, including 37 countries and territories where Hilton does not currently have any open hotels. Additionally, 200,000 rooms in the development pipeline were located outside the U.S., and 193,000 rooms, or more than half, were under construction.

During the quarter, Hilton added several notable properties to its system, including further expansion of its luxury and lifestyle portfolio with the openings of the Conrad Washington, DC, Conrad Hangzhou in China and Canopy by Hilton Minneapolis Mill District.

In February 2019, Hilton launched its newest brand, Signia Hilton, a dynamic, meetings-and-events-focused brand. Signia will further reinforce Hilton's commitment to innovation that meets the evolving needs of today's travelers and will bring premium experiences to top urban and resort destinations around the world. The brand will debut with the openings of the Signia Hilton Orlando Bonnet Creek, Signia Hilton Atlanta and Signia Hilton Indianapolis.

Balance Sheet and Liquidity

As of March 31, 2019, Hilton had $7.4 billion of long-term debt outstanding, excluding deferred financing costs and discount, with a weighted average interest rate of 4.46 percent. Excluding finance lease liabilities and other debt of Hilton's consolidated variable interest entities, Hilton had $7.2 billion of long-term debt outstanding with a weighted average interest rate of 4.41 percent.

Total cash and cash equivalents were $461 million as of March 31, 2019, including $79 million of restricted cash and cash equivalents. As of March 31, 2019, Hilton had $50 million outstanding under its senior secured revolving credit facility and a borrowing capacity of $891 million, which includes outstanding letters of credit.

In February 2019, Hilton's board of directors authorized an additional $1.5 billion for share repurchases under its stock repurchase program. During the first quarter of 2019, Hilton repurchased 3.9 million shares of its common stock at a cost of approximately $296 million and an average price per share of $76.65. From the inception of Hilton's stock repurchase program in March 2017, Hilton has repurchased approximately 41.7 million shares of its common stock for approximately $3.0 billion at an average price per share of $71.30. The amount remaining under Hilton's stock repurchase program is approximately $1.7 billion.

In March 2019, Hilton paid a quarterly cash dividend of $0.15 per share on shares of its common stock, for a total of $44 million. In April 2019, 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 June 28, 2019 to holders of record of its common stock as of the close of business on May 17, 2019.

Adoption of New Accounting Standard

On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") No. 2016-02 Leases (Topic 842) ("ASU 2016-02"), which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the balance sheet of lessees as right-of-use assets and lease liabilities. As permitted, the Company has applied this ASU at the adoption date; therefore, the presentation of financial information for all periods prior to January 1, 2019 remains unchanged and in accordance with Leases (Topic 840). The provisions of ASU 2016-02 did not affect the Company's cash flow or cash available for capital return, and did not have a material impact on the Company's consolidated statement of operations. Refer to Hilton's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019, which is expected to be filed on or about the date of this press release, for additional information on the effect of this ASU.

Outlook

Share-based metrics in Hilton's outlook include actual share repurchases to date, but do not include the effect of potential share repurchases hereafter.

Full Year 2019

  • System-wide RevPAR is expected to increase between 1.0 percent and 3.0 percent on a comparable and currency neutral basis compared to 2018.
  • Diluted EPS, before special items, is projected to be between $2.98 and $3.07.
  • Diluted EPS, adjusted for special items, is projected to be between $3.74 and $3.84.
  • Net income is projected to be between $881 million and $910 million.
  • Adjusted EBITDA is projected to be between $2,265 million and $2,305 million.
  • Management and franchise fee revenue is projected to increase between 7 percent and 9 percent compared to 2018.
  • Contract acquisition costs and capital expenditures, excluding amounts indirectly reimbursed by hotel owners, are expected to be between $175 million and $200 million.
  • Capital return is projected to be between $1.3 billion and $1.8 billion.
  • General and administrative expenses are projected to be between $430 million and $450 million.
  • Net unit growth is expected to be approximately 6.5 percent.

Second Quarter 2019

  • System-wide RevPAR is expected to increase between 1.0 percent and 2.0 percent on a comparable and currency neutral basis compared to the second quarter of 2018.
  • Diluted EPS, before special items, is projected to be between $0.81 and $0.86.
  • Diluted EPS, adjusted for special items, is projected to be between $0.98 and $1.03.
  • Net income is projected to be between $238 million and $253 million.
  • Adjusted EBITDA is projected to be between $590 million and $610 million.
  • Management and franchise fee revenue is projected to increase between 6 percent and 8 percent compared to the second quarter of 2018.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company, with a portfolio of 17 world-class brands comprising more than 5,700 properties with over 923,000 rooms, in 113 countries and territories. Dedicated to fulfilling its mission to be the world's most hospitable company, Hilton earned a spot on the 2018 world's best workplaces list and has welcomed more than 3 billion guests during its 100-year history. Through the award-winning guest loyalty program, Hilton Honors, more than 89 million members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy, plus enjoy instant benefits including digital check-in with room selection, Digital Key and Connected Room.

 

HILTON WORLDWIDE HOLDINGS INC.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

 

 

Condensed Consolidated Statements of Operations

Comparable and Currency Neutral System-Wide Hotel Operating Statistics

Property Summary

Capital Expenditures and Contract Acquisition Costs

Non-GAAP Financial Measures Reconciliations

Definitions

 
       

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions, except per share data)

 
 
Three Months Ended
March 31,
2019 2018
Revenues
Franchise and licensing fees $ 382 $ 331
Base and other management fees 80 77
Incentive management fees 55 55
Owned and leased hotels 312 334
Other revenues   26     23  
855 820
Other revenues from managed and franchised properties   1,349     1,254  
Total revenues 2,204 2,074
 
Expenses
Owned and leased hotels 298 320
Depreciation and amortization 84 82
General and administrative 107 104
Other expenses   20     14  
509 520
Other expenses from managed and franchised properties   1,383     1,275  
Total expenses 1,892 1,795
 
Operating income 312 279
 
Interest expense (98 ) (83 )
Gain on foreign currency transactions 11
Other non-operating income, net   4     14  
 
Income before income taxes 218 221
 
Income tax expense   (59 )   (58 )
 
Net income 159 163
Net income attributable to noncontrolling interests   (1 )   (2 )
Net income attributable to Hilton stockholders $ 158   $ 161  
 
Weighted average shares outstanding:
Basic   293     316  
Diluted   295     319  
 
Earnings per share:
Basic $ 0.54   $ 0.51  
Diluted $ 0.54   $ 0.51  
 
Cash dividends declared per share $ 0.15   $ 0.15  
 
 

HILTON WORLDWIDE HOLDINGS INC.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY REGION, BRAND AND SEGMENT

(unaudited)

 
 
    Three Months Ended March 31,
Occupancy     ADR     RevPAR
2019     vs. 2018 2019     vs. 2018 2019     vs. 2018
U.S. 72.2 % 0.4 % pts. $ 147.55 1.3 % $ 106.52 1.8 %
Americas (excluding U.S.) 65.6 0.6 125.76 3.4 82.56 4.4
Europe 68.9 (0.1 ) 128.23 3.3 88.38 3.2
Middle East & Africa 75.2 2.7 140.90 (9.1 ) 106.01 (5.7 )
Asia Pacific 68.9 1.7 130.32 (1.5 ) 89.84 1.0
System-wide 71.4 0.5 143.44 1.1 102.41 1.8
 
 
Three Months Ended March 31,
Occupancy ADR RevPAR
2019 vs. 2018 2019 vs. 2018 2019 vs. 2018
Waldorf Astoria Hotels & Resorts 71.7 % 0.1 % pts. $ 384.45 0.6 % $ 275.51 0.7 %
Conrad Hotels & Resorts 72.9 3.6 266.04 (0.8 ) 193.96 4.3
Hilton Hotels & Resorts 72.2 168.73 1.7 121.76 1.8
Curio Collection by Hilton 69.3 (1.0 ) 218.54 4.6 151.36 3.1
DoubleTree by Hilton 70.3 0.1 130.74 0.4 91.85 0.6
Embassy Suites by Hilton 76.0 0.9 163.98 1.5 124.61 2.7
Hilton Garden Inn 71.7 0.5 127.77 1.0 91.57 1.7
Hampton by Hilton 68.6 0.5 118.58 0.7 81.35 1.5
Tru by Hilton 63.1 4.7 99.63 3.7 62.84 12.0
Homewood Suites by Hilton 77.1 0.5 138.46 0.9 106.78 1.5
Home2 Suites by Hilton 75.3 3.9 114.78 1.0 86.41 6.5
System-wide 71.4 0.5 143.44 1.1 102.41 1.8
 
 
Three Months Ended March 31,
Occupancy ADR RevPAR
2019 vs. 2018 2019 vs. 2018 2019 vs. 2018
Management and franchise 71.4 % 0.5 % pts. $ 142.69 1.0 % $ 101.90 1.7 %
Ownership(1) 70.7 (0.3 ) 177.73 3.2 125.67 2.8
System-wide 71.4 0.5 143.44 1.1 102.41 1.8
 

____________

(1)  Includes owned and leased hotels, as well as hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.

 
 

HILTON WORLDWIDE HOLDINGS INC.

PROPERTY SUMMARY

As of March 31, 2019

 
 
    Owned / Leased(1)     Managed     Franchised     Total
Properties     Rooms Properties     Rooms Properties     Rooms Properties     Rooms
Waldorf Astoria Hotels & Resorts
U.S. 1 215 14 5,956 15 6,171
Americas (excluding U.S.) 1 142 1 984 2 1,126
Europe 2 463 4 898 6 1,361
Middle East & Africa 4 949 4 949
Asia Pacific 4 895 4 895
LXR Hotels & Resorts
Middle East & Africa 1 234 1 234
Conrad Hotels & Resorts
U.S. 5 1,649 1 236 6 1,885
Americas (excluding U.S.) 2 402 2 402
Europe 4 1,155 4 1,155
Middle East & Africa 1 614 2 993 3 1,607
Asia Pacific 1 164 18 5,359 1 654 20 6,177
Canopy by Hilton
U.S. 6 1,014 6 1,014
Europe 2 263 2 263
Asia Pacific 1 150 1 150
Hilton Hotels & Resorts
U.S. 67 48,780 176 53,695 243 102,475
Americas (excluding U.S.) 1 405 26 9,320 21 7,085 48 16,810
Europe 50 13,843 48 15,238 38 10,616 136 39,697
Middle East & Africa 5 1,998 42 12,995 3 1,609 50 16,602
Asia Pacific 7 3,437 95 34,510 7 2,826 109 40,773
Curio Collection by Hilton
U.S. 4 1,981 35 7,452 39 9,433
Americas (excluding U.S.) 8 1,194 8 1,194
Europe 3 270 12 1,477 15 1,747
Middle East & Africa 2 255 1 356 3 611
Asia Pacific 3 663 1 50 4 713
DoubleTree by Hilton
U.S. 34 11,565 319 74,251 353 85,816
Americas (excluding U.S.) 1 172 26 5,471 27 5,643
Europe 12 3,347 93 15,844 105 19,191
Middle East & Africa 10 2,349 6 718 16 3,067
Asia Pacific 57 15,797 3 1,072 60 16,869
Tapestry Collection by Hilton
U.S. 19 2,701 19 2,701
Embassy Suites by Hilton
U.S. 42 11,115 202 45,515 244 56,630
Americas (excluding U.S.) 3 667 5 1,330 8 1,997
Hilton Garden Inn
U.S. 5 537 660 91,325 665 91,862
Americas (excluding U.S.) 11 1,561 40 6,279 51 7,840
Europe 21 3,826 45 7,431 66 11,257
Middle East & Africa 13 2,763 1 175 14 2,938
Asia Pacific 29 6,261 29 6,261
Hampton by Hilton
U.S. 46 5,644 2,147 210,312 2,193 215,956
Americas (excluding U.S.) 12 1,565 95 11,373 107 12,938
Europe 18 2,956 66 10,276 84 13,232
Middle East & Africa 1 420 1 420
Asia Pacific 73 11,718 73 11,718
Tru by Hilton
U.S. 61 5,803 61 5,803
Americas (excluding U.S.) 1 90 1 90
Homewood Suites by Hilton
U.S. 18 1,916 443 50,583 461 52,499
Americas (excluding U.S.) 2 261 22 2,456 24 2,717
Home2 Suites by Hilton
U.S. 2 198 300 31,303 302 31,501
Americas (excluding U.S.) 5 543 5 543
Other 3 1,450 1 250 4 1,700
Hotels 68 21,139 689 216,930 4,947 676,564 5,704 914,633
Hilton Grand Vacations 53 8,477 53 8,477
Total 68 21,139 689 216,930 5,000 685,041 5,757 923,110
 

____________

(1)  Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.

 
 

HILTON WORLDWIDE HOLDINGS INC.

CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS

(unaudited, dollars in millions)

 
 
    Three Months Ended    
March 31, Increase / (Decrease)
2019     2018 $     %
Capital expenditures for property and equipment(1) $ 23 $ 10 13 NM(3)
Capitalized software costs(2)   19   15 4 26.7
Total capital expenditures 42 25 17 68.0
Contract acquisition costs   15   14 1 7.1
Total capital expenditures and contract acquisition costs $ 57 $ 39 18 46.2
 
____________

(1)

  Includes expenditures for hotels, corporate and other property and equipment, of which $5 million and $2 million were indirectly reimbursed by hotel owners for the three months ended March 31, 2019 and 2018, respectively. Excludes expenditures for furniture, fixtures and equipment ("FF&E") replacement reserve expenses of $14 million and $12 million for the three months ended March 31, 2019 and 2018, respectively.

(2)

Includes $15 million and $7 million of expenditures that were indirectly reimbursed by hotel owners for the three months ended March 31, 2019 and 2018, respectively.

(3)

Fluctuation in terms of percentage change is not meaningful.
 
   

HILTON WORLDWIDE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS

(unaudited, in millions, except per share data)

 
 
Three Months Ended
March 31,
2019     2018
Net income attributable to Hilton stockholders, as reported $ 158 $ 161
Diluted EPS, as reported $ 0.54 $ 0.51
Special items:
Net other expenses from managed and franchised properties $ 34 $ 21
Purchase accounting amortization(1) 51 51
FF&E replacement reserves 14 12
Other adjustments(2)   1     (4 )
Total special items before tax 100 80
Income tax expense on special items   (24 )   (20 )
Total special items after tax $ 76   $ 60  
 
Net income, adjusted for special items $ 234   $ 221  
Diluted EPS, adjusted for special items $ 0.80   $ 0.69  
 
____________

(1)

  Represents the amortization of intangible assets that were recorded at their fair value in October 2007 when the Company became a wholly owned subsidiary of affiliates of The Blackstone Group L.P ("Blackstone").

(2)

Includes severance costs related to the 2015 sale of the Waldorf Astoria New York that were recognized in general and administrative expenses and, for the three months ended March 31, 2018, also includes a gain on the refinancing of a loan Hilton issued to finance the construction of a hotel that Hilton manages, which was recognized in other non-operating income, net.
 
 

HILTON WORLDWIDE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

(unaudited, dollars in millions)

 
 
    Three Months Ended
March 31,
2019     2018
Net income $ 159 $ 163
Interest expense 98 83
Income tax expense 59 58
Depreciation and amortization   84     82  
EBITDA 400 386
Gain on foreign currency transactions (11 )
FF&E replacement reserves 14 12
Share-based compensation expense 34 28
Amortization of contract acquisition costs 7 7
Net other expenses from managed and franchised properties 34 21
Other adjustment items(1)   10     2  
Adjusted EBITDA $ 499   $ 445  
 

____________

(1)  Includes adjustments for severance and other items.

 
 
Three Months Ended
March 31,
2019 2018
Total revenues, as reported $ 2,204 $ 2,074
Add: amortization of contract acquisition costs 7 7
Less: other revenues from managed and franchised properties   (1,349 )   (1,254 )
Total revenues, as adjusted $ 862   $ 827  
 
Adjusted EBITDA $ 499 $ 445
 
Adjusted EBITDA margin   57.9 %   53.8 %
 
               

HILTON WORLDWIDE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

NET DEBT AND NET DEBT TO ADJUSTED EBITDA RATIO

(unaudited, dollars in millions)

 
 
March 31, December 31,
2019 2018
Long-term debt, including current maturities $ 7,365 $ 7,282
Add: unamortized deferred financing costs and discount   76     79  
Long-term debt, including current maturities and excluding unamortized deferred financing costs and discount 7,441 7,361
Add: Hilton's share of unconsolidated affiliate debt, excluding unamortized deferred financing costs 13 15
Less: cash and cash equivalents (382 ) (403 )
Less: restricted cash and cash equivalents   (79 )   (81 )
Net debt $ 6,993   $ 6,892  
 
 
Three Months Ended Year Ended TTM(1)
March 31, December 31, March 31,
2019 2018 2018 2019
Net income $ 159 $ 163 $ 769 $ 765
Interest expense 98 83 371 386
Income tax expense 59 58 309 310
Depreciation and amortization   84   82     325     327  
EBITDA 400 386 1,774 1,788
Loss (gain) on foreign currency transactions (11 ) 11 22
FF&E replacement reserve 14 12 50 52
Share-based compensation expense 34 28 127 133
Amortization of contract acquisition costs 7 7 27 27
Net other expenses from managed and franchised properties 34 21 85 98
Other adjustment items(2)   10   2     27     35  
Adjusted EBITDA $ 499 $ 445   $ 2,101   $ 2,155  
 
Net debt $ 6,993
 
Net debt to Adjusted EBITDA ratio   3.2  
 
____________

(1)

  Trailing twelve months ("TTM") March 31, 2019 is calculated as the three months ended March 31, 2019 plus the year ended December 31, 2018 less the three months ended March 31, 2018.

(2)

Includes adjustments for severance and other items.
 
 

HILTON WORLDWIDE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

OUTLOOK: NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS

FORECASTED 2019

(unaudited, in millions, except per share data)

 
 
    Three Months Ending
June 30, 2019
Low Case     High Case
Net income attributable to Hilton stockholders, before special items $ 236 $ 251
Diluted EPS, before special items(1) $ 0.81 $ 0.86
Special items(2):
Purchase accounting amortization $ 51 $ 51
FF&E replacement reserves   18     18  
Total special items before tax 69 69
Income tax expense on special items   (17 )   (17 )
Total special items after tax $ 52   $ 52  
 
Net income, adjusted for special items $ 288   $ 303  
Diluted EPS, adjusted for special items(1) $ 0.98   $ 1.03  
 
 
Year Ending
December 31, 2019
Low Case High Case
Net income attributable to Hilton stockholders, before special items $ 875 $ 904
Diluted EPS, before special items(1) $ 2.98 $ 3.07
Special items(2):
Net other expenses from managed and franchised properties $ 34 $ 34
Purchase accounting amortization 203 203
FF&E replacement reserves 61 61
Other adjustments   1     1  
Total special items before tax 299 299
Income tax expense on special items   (74 )   (74 )
Total special items after tax $ 225   $ 225  
 
Net income, adjusted for special items $ 1,100   $ 1,129  
Diluted EPS, adjusted for special items(1) $ 3.74   $ 3.84  
 
____________

(1)

  Does not include the effect of potential share repurchases.

(2)

See "—Net Income and Diluted EPS, Adjusted for Special Items" for details of these special items.
 
   

HILTON WORLDWIDE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

OUTLOOK: ADJUSTED EBITDA

FORECASTED 2019

(unaudited, in millions)

 
 
Three Months Ending
June 30, 2019
Low Case     High Case
Net income $ 238 $ 253
Interest expense 102 102
Income tax expense 94 99
Depreciation and amortization   83   83
EBITDA 517 537
FF&E replacement reserves 18 18
Share-based compensation expense 45 45
Amortization of contract acquisition costs 8 8
Other adjustment items(1)   2   2
Adjusted EBITDA $ 590 $ 610
 
 
Year Ending
December 31, 2019
Low Case High Case
Net income $ 881 $ 910
Interest expense 418 418
Income tax expense 343 354
Depreciation and amortization   330   330
EBITDA 1,972 2,012
FF&E replacement reserves 61 61
Share-based compensation expense 147 147
Amortization of contract acquisition costs 31 31
Net other expenses from managed and franchised properties 34 34
Other adjustment items(1)   20   20
Adjusted EBITDA $ 2,265 $ 2,305
 

____________

(1) Includes adjustments for severance and other items.

 



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