Company Results

Hilton Worldwide Exceeds Adjusted EBITDA Guidance for Fourth Quarter and Full Year 2014; Optimistic About 2015

EPS, adjusted for special items for the fourth quarter increased 55 percent from the prior year to $0.17 and increased 30 percent to $0.69 for the full year; without adjustments, EPS was $0.16 for the fourth quarter and $0.68 for the full year and net income attributable to Hilton stockholders was $158 million for the fourth quarter and $673 million for the full year

Hilton

Hilton Worldwide Holdings Inc. (NYSE: HLT) today reported its fourth quarter and full year 2014 results. Highlights include:

  • EPS, adjusted for special items for the fourth quarter increased 55 percent from the prior year to $0.17 and increased 30 percent to $0.69 for the full year; without adjustments, EPS was $0.16 for the fourth quarter and $0.68 for the full year and net income attributable to Hilton stockholders was $158 million for the fourth quarter and $673 million for the full year
  • Adjusted EBITDA for the fourth quarter increased 11 percent from the prior year to $668 million and increased 13.5 percent to $2,508 million for the full year
  • System-wide comparable RevPAR increased 6.6 percent and 7.1 percent for the fourth quarter and full year 2014, respectively, on a currency neutral basis
  • Management and franchise fees were $383 million and $1,468 million for the fourth quarter and full year 2014, respectively, both 15 percent increases from the same periods in 2013
  • Timeshare Adjusted EBITDA for the fourth quarter increased 11 percent from the prior year to $102 million and increased 12 percentto $334 million for the full year
  • Net unit growth was over 36,000 rooms in 2014, including nearly 10,000 rooms in the fourth quarter; managed and franchised rooms grew by 6 percent, all without portfolio acquisitions or major investments
  • Approved 27,000 rooms for development in the fourth quarter and over 82,000 rooms during the full year, growing its development pipeline to 1,351 hotels, consisting of approximately 230,000 rooms, as of December 31, 2014
  • Reduced senior secured term loan facility borrowings by $1 billion during 2014 through voluntary prepayments, including $300 million during the fourth quarter
  • Full year 2015 RevPAR expected to increase between 5.0 percent and 7.0 percent and Adjusted EBITDA expected to be between $2,790 million and $2,870 million

Overview

For the three months ended December 31, 2014, earnings per share ("EPS") and EPS, adjusted for special items was $0.16 and $0.17, respectively, compared to $0.03 and $0.11 for the three months ended December 31, 2013, respectively. Adjusted EBITDA increased 11 percent to $668 million for the three months ended December 31, 2014, compared to $603 million for the three months ended December 31, 2013, and net income attributable to Hilton stockholders was $158 million for the three months ended December 31, 2014 compared to $26 million for the three months ended December 31, 2013.

For the full year 2014, EPS and EPS, adjusted for special items was $0.68 and $0.69, respectively, compared to $0.45 and $0.53, respectively, for the year ended December 31, 2013. Adjusted EBITDA increased 13.5 percent to $2,508 million for the full year 2014, compared to $2,210 million in 2013, and net income attributable to Hilton stockholders was $673 million for the full year 2014, compared to $415 million for the year ended December 31, 2013.

Christopher J. Nassetta, President & Chief Executive Officer of Hilton Worldwide, said, "2014 was a banner year for Hilton Worldwide. Our fourth quarter and full year results exceeded our expectations for Adjusted EBITDA and fee growth, as did our full year RevPAR growth. Additionally, we continued to increase the value of shareholder equity by further reducing our long-term debt by $1 billion through voluntary prepayments during 2014.

"Our distinct, world-class brands continue to deliver accelerating growth, with 40,000 new rooms opening during 2014. Even with openings increasing, we continue to expand our industry-leading global pipeline, which consists of approximately 230,000 rooms, the majority of which are under construction. During the year, we launched two new brands, Canopy by Hilton and Curio - A Collection by Hilton, which will continue to expand our pipeline," Nassetta added.

"Looking ahead, we are optimistic that 2015 will bring continued strong performance and growth, with global RevPAR expected to increase 5 to 7 percent. Given our expanding development pipeline, we expect net unit growth in managed and franchised rooms of 6 to 7 percent."

Segment Highlights

Management and Franchise

Management and franchise fees were $383 million in the fourth quarter of 2014, an increase of 15 percent compared to the same period in 2013. RevPAR at comparable managed and franchised hotels in the fourth quarter increased 6.7 percent on a currency neutral basis (a 5.7 percent increase in actual dollars) compared to the same period in 2013.

During the full year 2014, management and franchise fees were $1,468 million, an increase of over 15 percent compared to the full year 2013. RevPAR at comparable managed and franchised hotels for the full year 2014 increased 7.3 percent on a currency neutral basis (a 7.0 percent increase in actual dollars) compared to the full year 2013. The increase in RevPAR at comparable managed and franchised hotels and new units have yielded continued fee growth during 2014, including base and incentive management fees and franchise fees, which increased 11 percent, 20 percent and 17 percent, respectively, compared to 2013.

Ownership

Revenues from the ownership segment were $1,106 million in the fourth quarter of 2014, and ownership segment Adjusted EBITDA was $269 million. RevPAR at comparable hotels in the ownership segment increased 5.9 percent on a currency neutral basis (a 3.2 percent increase in actual dollars) in the fourth quarter of 2014 compared to the same period in 2013, led by an increase in RevPAR of 7.0 percent at comparable ownership segment hotels in the United States. Outside of the United States, RevPAR at comparable ownership segment hotels increased by 4.2 percent on a currency neutral basis (a 2.0 percent decrease in actual dollars).

For the full year 2014, revenues from the ownership segment were $4,271 million. Ownership segment Adjusted EBITDA for the full year 2014 was $999 million. Ownership segment Adjusted EBITDA increased 10 percent(1) from 2013, and Adjusted EBITDA margin increased 122 basis points(1). RevPAR at comparable hotels in the ownership segment increased 5.8 percent on a currency neutral basis (a 5.5 percent increase in actual dollars) for the full year 2014 compared to 2013, led by an increase in RevPAR of 6.9 percent at comparable ownership segment hotels in the United States. Outside of the United States, RevPAR at comparable ownership segment hotels increased by 4.2 percent on a currency neutral basis (a 3.5 percent increase in actual dollars).

On February 10, 2015, Hilton Worldwide closed its previously-announced sale of the Waldorf Astoria New York to Anbang Insurance Group Co. Ltd. for $1.95 billion. $1.76 billion of the proceeds from the sale were deployed to add five landmark properties in strategic resort and urban locations to its owned portfolio: the resort complex consisting of the Hilton Orlando Bonnet Creek and the Waldorf Astoria Orlando in Orlando, FL (the "Bonnet Creek Resort"); The Reach, A Waldorf Astoria Resort in Key West, FL; Casa Marina, A Waldorf Astoria Resort in Key West, FL; and Parc 55 in San Francisco, CA.

Timeshare

Timeshare segment revenue for the fourth quarter of 2014 was $321 million, an increase of 7 percent from the same period in 2013, and timeshare Adjusted EBITDA was $102 million, an increase of 11 percent. Timeshare sales increased $12 million due to a $35 million increase in fees for selling timeshare intervals on behalf of third-party developers, offset by a decrease in sales revenue on owned inventory of $23 million as a result of the deferral of revenue recognition. Resort operations revenue increased $11 million compared to the fourth quarter of 2013.

For the full year 2014, timeshare segment revenue was $1,171 million, an increase of 6 percent from 2013, and timeshare Adjusted EBITDA was $334 million, an increase of 12 percent. Resort operations revenue increased $37 million compared to 2013. Timeshare sales increased $23 million due to a $47 million increase in fees for selling timeshare intervals on behalf of third-party developers, offset by a decrease in sales revenue on owned inventory of $24 million, primarily as a result of the deferral of revenue recognition.

During the fourth quarter of 2014, 66 percent of intervals sold were developed by third parties. Hilton Worldwide's supply of third-party developed timeshare intervals was approximately 109,000, or 82 percent of the total supply, as of December 31, 2014. Hilton Worldwide continues to expand its overall supply of timeshare intervals and as of December 31, 2014, had approximately 132,000 intervals, or over six years of projected supply, between Hilton developed and third-party developed intervals, at the current sales pace.

Development

Hilton Worldwide opened 63 hotels with over 10,000 rooms in the fourth quarter of 2014, 44 percent of which were conversions from non-Hilton brands, and achieved net unit growth of nearly 10,000 rooms. During the year ended December 31, 2014, Hilton opened 240 hotels with 40,000 rooms and achieved net unit growth of over 36,000 rooms. On a net basis, Hilton added 6 percent to the managed and franchised room base in 2014.

As of December 31, 2014, Hilton Worldwide had the largest rooms pipeline in the lodging industry(2), with approximately 230,000 rooms at 1,351 hotels throughout 79 countries and territories, of which 56 percent, or approximately 129,000 rooms, were located outside of the United States. More than half of the rooms in this pipeline were under construction, and all were in Hilton's capital-light management and franchise segment. Hilton Worldwide has the largest share of rooms under construction globally(2). Including all agreements approved but not yet signed, Hilton Worldwide's pipeline totaled approximately 245,000 rooms.

During 2014, Hilton Worldwide launched two new brands, Canopy by Hilton and Curio - A Collection by Hilton, and expanded the global reach of its current brands, including an exclusive license agreement with the Plateno Hotels Group for the expansion of the Hampton by Hilton brand in China.

Balance Sheet and Liquidity

During the fourth quarter of 2014, Hilton made $300 million of voluntary prepayments on its senior secured term loan facility and $13 million of prepayments on its commercial mortgage-backed securities loan. For the full year 2014, Hilton reduced its long-term debt by more than $1 billion.

As of December 31, 2014, Hilton had $10.8 billion of outstanding indebtedness, excluding $879 million of non-recourse debt, with a weighted average interest rate of 4.1 percent.

Total cash and cash equivalents were $768 million as of December 31, 2014, including $202 million of restricted cash and cash equivalents. No borrowings were outstanding under the $1.0 billion revolving credit facility as of December 31, 2014.

In connection with the sale of the Waldorf Astoria New York, Hilton Worldwide repaid in full the amounts outstanding under its existing $525 million mortgage loan on the Waldorf Astoria New York. Upon the closing of the Bonnet Creek Resort acquisition, Hilton Worldwide will assume a $450 million mortgage loan that currently encumbers the resort.

____________
(1)   Excluding an $11 million benefit in 2013 related to the recognition of a lease termination payment and $12 million of affiliate management fees in 2014 that are not comparable year over year as a result of a modification to certain affiliate management agreements. Ownership segment Adjusted EBITDA margin is calculated as ownership segment Adjusted EBITDA divided by ownership segment revenues.
(2)   Source: Smith Travel Research, Inc. ("STR") Global New Development Pipeline (December 2014).
     

Outlook

To facilitate comparisons with the Company's competitors, beginning in the first quarter of 2015 Adjusted EBITDA will exclude all share-based compensation expense. The Company's outlook for 2015 reflects this revised definition and effect of the Waldorf Astoria New York sale and use of proceeds to acquire additional properties. See "Non-GAAP Financial Measures Reconciliations—Outlook: Adjusted EBITDA" for first quarter and full year 2014 Adjusted EBITDA presented using the revised definition.

Full Year 2015

  • System-wide RevPAR is expected to increase between 5.0 percent and 7.0 percent on a comparable and currency neutral basis, with ownership segment RevPAR expected to increase between 4.0 percent and 6.0 percent on a comparable and currency neutral basis as compared to 2014.
  • Adjusted EBITDA is projected to be between $2,790 million and $2,870 million.
  • Management and franchise fees are projected to increase approximately 11 percent to 13 percent.
  • Timeshare segment Adjusted EBITDA is projected to be between $335 million and $350 million.
  • Corporate expense and other is projected to remain flat to prior year.
  • Diluted EPS, adjusted for special items, is projected to be between $0.78 and $0.83.
  • Capital expenditures, excluding timeshare inventory, are expected to be between $350 million and $400 million.
  • Net unit growth is expected to be approximately 40,000 rooms to 45,000 rooms, a 6 percent to 7 percent increase in managed and franchised rooms.

First Quarter 2015

  • System-wide RevPAR is expected to increase between 5.0 percent and 7.0 percent on a comparable and currency neutral basis compared to the first quarter of 2014.
  • Adjusted EBITDA is expected to be between $555 million and $575 million.
  • Management and franchise fees are expected to increase approximately 11 percent to 13 percent.
  • Diluted EPS, adjusted for special items, is projected to be between $0.10 and $0.12.

Non-GAAP Financial Measures

The Company refers to certain non-GAAP financial measures in this press release, including net income and EPS, adjusted for special items, Adjusted EBITDA and Adjusted EBITDA margins and Net Debt. Please see the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures.

About Hilton Worldwide

Hilton Worldwide (NYSE: HLT) is a leading global hospitality company, spanning the lodging sector from luxury and full-service hotels and resorts to extended-stay suites and focused-service hotels. For 95 years, Hilton Worldwide has been dedicated to continuing its tradition of providing exceptional guest experiences. The Company’s portfolio of 12 world-class global brands is comprised of 4,322 managed, franchised, owned and leased hotels and timeshare properties, with 715,062 rooms in 94 countries and territories, including Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio - A Collection by Hilton, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton Hotels, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations. The Company also manages an award-winning customer loyalty program, Hilton HHonors®. 

 
HILTON WORLDWIDE HOLDINGS INC.
EARNINGS RELEASE SCHEDULES
TABLE OF CONTENTS

 

Consolidated Statements of Operations

Segment Adjusted EBITDA

Comparable and Currency Neutral System-wide Hotel Operating Statistics

Management and Franchise Fees and Other Revenues

Timeshare Revenues and Operating Expenses

Hotel and Timeshare Property Summary

Capital Expenditures

Non-GAAP Financial Measures Reconciliations

Definitions

         
HILTON WORLDWIDE HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
         
    Three Months Ended   Year Ended
    December 31,   December 31,
    2014   2013   2014   2013
Revenues                        
Owned and leased hotels   $ 1,098     $ 1,064     $ 4,239     $ 4,046  
Management and franchise fees and other   371     307     1,401     1,175  
Timeshare   321     300     1,171     1,109  
    1,790     1,671     6,811     6,330  
Other revenues from managed and franchised properties   1,038     972     3,691     3,405  
Total revenues   2,828     2,643     10,502     9,735  
                         
Expenses                        
Owned and leased hotels   832     820     3,252     3,147  
Timeshare   203     185     767     730  
Depreciation and amortization   158     148     628     603  
General, administrative and other   142     429     491     748  
    1,335     1,582     5,138     5,228  
Other expenses from managed and franchised properties   1,038     972     3,691     3,405  
Total expenses   2,373     2,554     8,829     8,633  
                         
Operating income   455     89     1,673     1,102  
                         
Interest income   2     4     10     9  
Interest expense   (151 )   (219 )   (618 )   (620 )
Equity in earnings from unconsolidated affiliates   3     5     19     16  
Gain (loss) on foreign currency transactions   (15 )   (2 )   26     (45 )
Gain on debt extinguishment       229         229  
Other gain (loss), net   (1 )   2     37     7  
                         
Income before income taxes   293     108     1,147     698  
                         
Income tax expense   (134 )   (46 )   (465 )   (238 )
                         
Net income   159     62     682     460  
Net income attributable to noncontrolling interests   (1 )   (36 )   (9 )   (45 )
Net income attributable to Hilton stockholders   $ 158     $ 26     $ 673     $ 415  
                         
Weighted average shares outstanding                        
Basic   985     931     985     923  
Diluted   987     931     986     923  
                         
Earnings per share                        
Basic and diluted   $ 0.16     $ 0.03     $ 0.68     $ 0.45  
         
HILTON WORLDWIDE HOLDINGS INC.
SEGMENT ADJUSTED EBITDA
(unaudited, in millions)
         
    Three Months Ended   Year Ended
    December 31,   December 31,
    2014   2013   2014   2013
Management and franchise(1)   $ 383     $ 333     $ 1,468     $ 1,271  
Ownership(1)(2)(3)(4)   269     254     999     926  
Timeshare(1)(2)   102     92     334     297  
Corporate and other(3)   (86 )   (76 )   (293 )   (284 )
Adjusted EBITDA(5)   $ 668     $ 603     $ 2,508     $ 2,210  
____________
(1)  

Includes management, royalty and intellectual property fees of $27 million and $29 million for the three months ended December 31, 2014 and 2013, respectively, and $113 million and $100 million for the years ended December 31, 2014 and 2013, respectively. These fees are charged to consolidated owned and leased properties and were eliminated in the consolidated financial statements. Also includes a licensing fee of $11 million and $16 million for the three months ended December 31, 2014 and 2013, respectively, and $44 million and $56 million for the years ended December 31, 2014 and 2013, respectively, which is charged to the timeshare segment by the management and franchise segment and was eliminated in the consolidated financial statements. While the net effect is zero, the measure of Adjusted EBITDA includes these fees as a benefit to the management and franchise segment and a cost to the ownership and timeshare segments.

(2)  

Includes charges to timeshare operations for rental fees and fees for other amenities, which were eliminated in the consolidated financial statements. These charges totaled $7 million for the three months ended December 31, 2014 and 2013 and $28 million and $26 million for the years ended December 31, 2014 and 2013, respectively. While the net effect is zero, the measure of Adjusted EBITDA includes these fees as a benefit to the ownership segment and a cost to the timeshare segment.

(3)  

Includes charges to consolidated owned and leased properties for services provided by a wholly owned laundry business of $3 million and $2 million for the three months ended December 31, 2014 and 2013, respectively, and $9 million for the years ended December 31, 2014 and 2013. Also includes other intercompany charges of $1 million for the three months ended December 31, 2014 and 2013 and $4 million and $3 million for the years ended December 31, 2014 and 2013, respectively.

(4)  

Includes unconsolidated affiliate Adjusted EBITDA.

(5)  

See "Non-GAAP Financial Measures Reconciliations—Adjusted EBITDA and Adjusted EBITDA Margin" for a reconciliation of net income attributable to Hilton stockholders to Adjusted EBITDA.

     
HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY REGION
(unaudited)
     
    Three Months Ended December 31,
    Occupancy   ADR   RevPAR
    2014   vs. 2013   2014   vs. 2013   2014   vs. 2013
Americas   70.7 %   2.1 % pts.   $ 136.27     3.7 %   $ 96.31     6.8 %
Europe   75.1     3.3       164.45     2.2     123.53     6.9  
Middle East & Africa   65.6     7.3       168.14     (5.3 )   110.22     6.7  
Asia Pacific   72.7     2.7       160.55     (0.9 )   116.80     2.9  
System-wide   71.0     2.3       140.63     3.1     99.82     6.6  
     
     
    Year Ended December 31,
    Occupancy   ADR   RevPAR
    2014   vs. 2013   2014   vs. 2013   2014   vs. 2013
Americas   75.2 %   2.3 % pts.   $ 137.13     4.1 %   $ 103.16     7.4 %
Europe   75.4     2.6       170.68     2.4     128.65     6.1  
Middle East & Africa   63.5     3.5       165.15     (1.3 )   104.93     4.4  
Asia Pacific   69.2     2.3       160.59     1.4     111.15     4.9  
System-wide   74.6     2.4       141.52     3.7     105.63     7.1  
     
HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY BRAND
(unaudited)
     
    Three Months Ended December 31,
    Occupancy   ADR   RevPAR
    2014   vs. 2013   2014   vs. 2013   2014   vs. 2013
Waldorf Astoria Hotels & Resorts   71.4 %   0.3 % pts.   $ 337.01     5.6 %   $ 240.61     5.9 %
Conrad Hotels & Resorts   71.7     5.0       257.61     (2.8 )   184.61     4.4  
Hilton Hotels & Resorts   72.9     2.3       168.37     2.5     122.81     5.8  
DoubleTree by Hilton   71.2     2.0       134.46     4.4     95.72     7.4  
Embassy Suites Hotels   72.9     1.2       144.04     4.4     105.02     6.1  
Hilton Garden Inn   70.3     2.0       124.07     3.6     87.25     6.6  
Hampton Hotels   68.3     2.9       112.24     3.0     76.70     7.7  
Homewood Suites by Hilton   74.2     2.0       123.07     3.8     91.34     6.7  
Home2 Suites by Hilton   72.4     7.3       107.30     4.3     77.71     16.0  
System-wide   71.0     2.3       140.63     3.1     99.82     6.6  
     
     
    Year Ended December 31,
    Occupancy   ADR   RevPAR
    2014   vs. 2013   2014   vs. 2013   2014   vs. 2013
Waldorf Astoria Hotels & Resorts   73.1 %   0.3 % pts.   $ 323.87     6.0 %   $ 236.68     6.4 %
Conrad Hotels & Resorts   69.4     4.3       259.57     2.1     180.27     8.9  
Hilton Hotels & Resorts   75.0     1.9       169.08     3.3     126.74     6.0  
DoubleTree by Hilton   74.7     2.4       133.70     4.6     99.90     8.1  
Embassy Suites Hotels   77.5     1.7       147.45     4.4     114.26     6.8  
Hilton Garden Inn   75.3     2.8       126.08     3.8     94.91     7.8  
Hampton Hotels   72.8     2.7       114.87     3.8     83.65     7.9  
Homewood Suites by Hilton   78.9     2.5       125.13     4.3     98.75     7.6  
Home2 Suites by Hilton   79.0     6.7       106.90     3.1     84.45     12.7  
System-wide   74.6     2.4       141.52     3.7     105.63     7.1  
     
HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY SEGMENT
(unaudited)
     
    Three Months Ended December 31,
    Occupancy   ADR   RevPAR
    2014   vs. 2013   2014   vs. 2013   2014   vs. 2013
Ownership(1)   76.2 %   2.9 % pts.   $ 199.02     1.9 %   $ 151.67     5.9 %
U.S.   78.3     2.4       215.37     3.8     168.64     7.0  
International (non-U.S.)   73.8     3.4       178.77     (0.6 )   131.87     4.2  
                                       
Management and franchise   70.4     2.3       133.90     3.3     94.29     6.7  
U.S.   70.2     2.1       130.45     3.6     91.64     6.8  
International (non-U.S.)   71.2     3.3       150.07     1.5     106.93     6.4  
                                       
System-wide   71.0     2.3       140.63     3.1     99.82     6.6  
U.S.   70.8     2.1       136.55     3.7     96.64     6.8  
International (non-U.S.)   71.8     3.3       156.58     0.9     112.43     5.8  
     
     
    Year Ended December 31,
    Occupancy   ADR   RevPAR
    2014   vs. 2013   2014   vs. 2013   2014   vs. 2013
Ownership(1)   77.8 %   2.1 % pts.   $ 198.17     2.9 %   $ 154.25     5.8 %
U.S.   81.2     1.8       207.88     4.5     168.84     6.9  
International (non-U.S.)   73.9     2.4       185.73     0.8     137.24     4.2  
                                       
Management and franchise   74.3     2.4       135.20     3.9     100.45     7.3  
U.S.   75.0     2.4       131.86     4.1     98.90     7.5  
International (non-U.S.)   70.9     2.6       151.96     2.8     107.79     6.7  
                                       
System-wide   74.6     2.4       141.52     3.7     105.63     7.1  
U.S.   75.4     2.3       137.18     4.1     103.44     7.4  
International (non-U.S.)   71.6     2.6       159.65     2.2     114.28     6.0  
____________
(1)  

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

         
HILTON WORLDWIDE HOLDINGS INC.
MANAGEMENT AND FRANCHISE FEES AND OTHER REVENUES
(unaudited, dollars in millions)
         
    Three Months Ended    
    December 31,   Increase / (Decrease)
    2014   2013   $   %
Management fees:                        
Base fees(1)   $ 86     $ 80     6     7.5  
Incentive fees(1)   38     34     4     11.8  
Total base and incentive fees   124     114     10     8.8  
Other management fees(2)   10     13     (3 )   (23.1 )
Total management fees   134     127     7     5.5  
Franchise fees(3)   249     206     43     20.9  
Total management and franchise fees   383     333     50     15.0  
Other revenues(4)   29     21     8     38.1  
Intersegment fees elimination(1)(3)(4)   (41 )   (47 )   6     (12.8 )
Management and franchise fees and other revenues   $ 371     $ 307     64     20.8  
   



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