Hilton Results

Hilton Beats First Quarter Profit Guidance

Hilton Worldwide Exceeds High End of Guidance for First Quarter 2015 Adjusted EBITDA; Raises Full Year Outlook

Hilton

Hilton Worldwide Holdings Inc. (NYSE: HLT) today reported its first quarter 2015 results and raised its full year 2015 outlook. Highlights include:

  • EPS was $0.15 for the first quarter, a 25 percent increase from the same period in 2014; EPS, adjusted for special items was $0.12
  • Net income attributable to Hilton stockholders for the first quarter was $150 million, a 22 percent increase from the same period in 2014
  • Adjusted EBITDA for the first quarter increased 18 percent from the same period in 2014 to $599 million and Adjusted EBITDA margin increased 320 basis points
  • System-wide comparable RevPAR increased 6.6 percent for the first quarter on a currency neutral basis from the same period in 2014
  • Management and franchise fees for the first quarter increased 18 percent from the same period in 2014 to $391 million
  • Gross operating profit margins for U.S. comparable owned and operated hotels increased over 120 basis points for the first quarter compared to the same period in 2014
  • Opened more than 8,000 rooms in the first quarter
  • Approved more than 23,000 new rooms for development during the first quarter, growing its development pipeline to 1,432 hotels, consisting of 240,000 rooms, as of March 31, 2015
  • Reduced long-term debt by $225 million during the first quarter; additional $100 million voluntary prepayment of senior secured term loan facility in April 2015
  • Entered into an agreement to sell Hilton Sydney for A$442 million Australian Dollars in a tax-efficient manner; upon closing, plan to use proceeds, net of transaction costs, to further reduce long-term debt
  • Entered into an agreement to acquire what is currently the Cypress Hotel in Cupertino, California for $112 million, reinvesting the last portion of the Waldorf Astoria New York sale proceeds
  • Increased outlook for full year Adjusted EBITDA to between $2,810 million and $2,870 million

Overview

For the three months ended March 31, 2015, earnings per share ("EPS") was $0.15 compared to $0.12 for the three months ended March 31, 2014, and EPS, adjusted for special items, was $0.12 for the three months ended March 31, 2015 compared to $0.13 for three months ended March 31, 2014. Adjusted EBITDA increased 18 percent to $599 million for the three months ended March 31, 2015, compared to $508 million for the three months ended March 31, 2014 and net income attributable to Hilton stockholders was $150 million for the three months ended March 31, 2015 compared to $123 million for the three months ended March 31, 2014.

Christopher J. Nassetta, President & Chief Executive Officer of Hilton Worldwide, said, "We started the year with another strong quarter, with top line growth at the high end of our guidance, despite significant weather impact in the U.S., and strong fee growth and owned asset performance, that all resulted in Adjusted EBITDA exceeding our guidance. Our portfolio of industry-leading brands continues to fuel our growth, resulting in the industry's largest pipeline and most rooms under construction globally."

Segment Highlights

Management and Franchise

Management and franchise fees were $391 million in the first quarter of 2015, an increase of 18 percent compared to the same period in 2014. RevPAR at comparable managed and franchised hotels in the first quarter of 2015 increased 6.9 percent on a currency neutral basis (a 5.4 percent increase in actual dollars) compared to the same period in 2014. The increase in RevPAR at comparable managed and franchised hotels and new units have yielded continued fee growth during the first quarter of 2015, including incentive management fees, which increased 16 percent on a currency neutral basis compared to the same period in 2014.

Ownership

Revenues from the ownership segment were $964 million in the first quarter of 2015, and ownership segment Adjusted EBITDA was $190 million, an increase of 9 percent from the same period in 2014. Adjusted EBITDA margin(1) increased over 130 basis points. RevPAR at comparable hotels in the ownership segment increased 4.3 percent on a currency neutral basis (a 0.8 percent decrease in actual dollars) in the first quarter of 2015 compared to the same period in 2014, with an increase in RevPAR of 4.1 percent at comparable ownership segment hotels in the United States. Outside of the United States, RevPAR at comparable ownership segment hotels increased by 4.7 percent on a currency neutral basis (a 7.4 percent decrease in actual dollars).

Hilton plans to complete the previously-announced 1031 exchange by deploying the last portion of the Waldorf Astoria New York sale proceeds to acquire what is currently the Cypress Hotel in Cupertino, California for $112 million. The transaction is expected to close during the second quarter.

Hilton continues to harvest value in its owned portfolio, announcing plans to sell the Hilton Sydney at attractive pricing in a tax-efficient manner. As part of the A$442 million Australian Dollar sale, Hilton will continue to manage this property, subject to a 50-year management agreement. Hilton expects to use the proceeds of the sale, net of transaction costs, to further reduce long-term debt.

Timeshare

Timeshare segment revenue for the first quarter of 2015 was $321 million, an increase of 15 percent from 2014, and timeshare Adjusted EBITDA was $74 million. Commissions recognized from the sale of third-party developed timeshare intervals increased $72 million during the first quarter of 2015 from the same period in 2014, while sales revenue on owned inventory decreased $34 million.

In the first quarter of 2015, 78 percent of intervals sold were developed by third parties. Hilton Worldwide's overall supply of timeshare intervals as of March 31, 2015 was approximately 128,000 intervals, or over five years of projected supply at the current sales pace, of which 104,000, or 81 percent, were developed by third parties.

Development

Hilton Worldwide opened 53 hotels with over 8,000 rooms during the first quarter of 2015, over 40 percent of which were conversions from non-Hilton brands, and achieved net unit growth of nearly 6,000 rooms.

As of March 31, 2015, Hilton Worldwide had the largest rooms pipeline in the lodging industry(2), with approximately 240,000 rooms at 1,432 hotels throughout 81 countries and territories, of which 56 percent, or approximately 134,000 rooms, were located outside of the United States. All of the development pipeline is in the capital light management and franchise segment, and over half, or approximately 126,000 rooms, were under construction. At nearly 20 percent, Hilton Worldwide also has the largest share of rooms under construction globally(2). Including all agreements approved but not signed, Hilton Worldwide's pipeline totaled nearly 255,000 rooms.

Hilton Worldwide's most recently launched brands, Canopy by Hilton, an accessible lifestyle brand, and Curio - A Collection by Hilton, representing independent, one-of-a-kind properties, have over 50 properties and 13,000 rooms open or in various stages of development.

Balance Sheet and Liquidity

During the first quarter of 2015, Hilton reduced its long-term debt balance by $225 million, including a $150 million voluntary prepayment on its senior secured term loan facility. Additionally, Hilton repaid in full the amounts outstanding under its existing $525 million mortgage loan on the Waldorf Astoria New York (the "Waldorf Astoria Loan") using the proceeds from the sale of the Waldorf Astoria New York and assumed a $450 million mortgage loan from the acquisition of the resort complex consisting of the Waldorf Astoria Orlando and the Hilton Orlando Bonnet Creek in Orlando, Florida. In April 2015, Hilton made an additional $100 million voluntary prepayment on its senior secured term loan facility. Hilton plans to use the net proceeds of the sale of the Hilton Sydney, estimated to be approximately $325 million, to further reduce long-term debt.

As of March 31, 2015, Hilton had $10.6 billion of outstanding indebtedness with a weighted average interest rate of 4.2 percent, excluding $848 million of non-recourse debt.

Total cash and cash equivalents were $816 million as of March 31, 2015, including $269 million of restricted cash and cash equivalents. No borrowings were outstanding under the $1.0 billion revolving credit facility as of March 31, 2015.

Outlook

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 $2,810 million and $2,870 million; the announced Hilton Sydney sale would reduce this range by $10 million to $14 million upon closing.
  • 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 $0.79 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.
  • Expect cash available for debt prepayments or capital return to stockholders to be between $1.1 billion and $1.3 billion, including proceeds from the sale of the Hilton Sydney.

Second 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 second quarter of 2014.
  • Adjusted EBITDA is expected to be between $740 million and $760 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 $0.21 and $0.23.

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 the press release and "Definitions" 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 4,362 managed, franchised, owned and leased hotels and timeshare properties, with 720,701 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
 

 

Condensed 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
 
Three Months Ended
March 31,
2015   2014
Revenues
Owned and leased hotels $ 957 $ 945
Management and franchise fees and other 371 312
Timeshare 321   279  
1,649 1,536
Other revenues from managed and franchised properties 950   827  
Total revenues 2,599 2,363
 
Expenses
Owned and leased hotels 768 771
Timeshare 234 177
Depreciation and amortization 175 153
General, administrative and other 127   97  
1,304 1,198
Other expenses from managed and franchised properties 950   827  
Total expenses 2,254 2,025
 
Gain on sales of assets, net 145
 
Operating income 490 338
 
Interest income 6 1
Interest expense (144 ) (153 )
Equity in earnings from unconsolidated affiliates 4 4
Gain (loss) on foreign currency transactions (18 ) 14
Other gain (loss), net (25 ) 3  
 
Income before income taxes 313 207
 
Income tax expense (163 ) (83 )
 
Net income 150 124
Net income attributable to noncontrolling interests   (1 )
Net income attributable to Hilton stockholders $ 150   $ 123  
 
Weighted average shares outstanding
Basic 986   985  
Diluted 988   985  
 
Earnings per share
Basic and diluted $ 0.15   $ 0.12  
____________

(1)

  To facilitate comparison with the Company's competitors, beginning in the first quarter of 2015 Adjusted EBITDA excluded all share-based compensation expense. Historical results have been revised to reflect this change in the definition to allow for comparability.

(2)

Includes management, royalty and intellectual property fees of $30 million and $27 million for the three months ended March 31, 2015 and 2014, respectively. These fees are charged to consolidated owned and leased properties and were eliminated in the condensed consolidated financial statements. Also includes a licensing fee of $9 million and $11 million for the three months ended March 31, 2015 and 2014, respectively, which is charged to the timeshare segment by the management and franchise segment and was eliminated in the condensed consolidated financial statements. While the net effect is zero, the measure of Adjusted EBITDA includes these fees as a benefit to management and franchise Adjusted EBITDA and a cost to ownership Adjusted EBITDA and timeshare Adjusted EBITDA.

(3)

Includes charges to timeshare operations for rental fees and fees for other amenities, which were eliminated in the condensed consolidated financial statements. These charges totaled $6 million for the three months ended March 31, 2015 and 2014. While the net effect is zero, the measure of Adjusted EBITDA includes these fees as a benefit to ownership Adjusted EBITDA and a cost to timeshare Adjusted EBITDA.

(4)

Includes charges to consolidated owned and leased properties for services provided by a wholly owned laundry business of $2 million for the three months ended March 31, 2015 and 2014. Also includes other intercompany charges of $1 million for the three months ended March 31, 2015 and 2014.

(5)

Includes unconsolidated affiliate Adjusted EBITDA.

(6)

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.
____________

(1)

  Includes management, royalty and intellectual property fees earned from consolidated owned and leased properties of $26 million and $23 million for the three months ended March 31, 2015 and 2014, respectively.

(2)

Includes management, royalty and intellectual property fees earned from consolidated owned and leased properties of $4 million for the three months ended March 31, 2015 and 2014.

(3)

Includes timeshare homeowners' association, early termination, product improvement plan and other fees.

(4)

Includes a licensing fee earned from the timeshare segment of $9 million and $11 million for the three months ended March 31, 2015 and 2014, respectively.

(5)

Includes charges to consolidated owned and leased properties for services provided by a wholly owned laundry business of $2 million for the three months ended March 31, 2015 and 2014.
       
HILTON WORLDWIDE HOLDINGS INC.
HOTEL AND TIMESHARE PROPERTY SUMMARY
As of March 31, 2015
 
Owned / Leased(1) Managed Franchised Total
Hotels   Rooms Hotels   Rooms Hotels   Rooms Hotels   Rooms
Waldorf Astoria Hotels & Resorts
U.S. 4 1,148 9 5,778 13 6,926
Americas (excluding U.S.) 1 153 1 984 2 1,137
Europe 2 463 4 898 6 1,361
Middle East & Africa 3 703 3 703
Asia Pacific 2 431 2 431
Conrad Hotels & Resorts
U.S. 4 1,337 4 1,337
Americas (excluding U.S.) 1 294 1 294
Europe 1 191 2 705 1 256 4 1,152
Middle East & Africa 1 614 2 641 3 1,255
Asia Pacific 11 3,419 1 636 12 4,055
Hilton Hotels & Resorts
U.S. 25 23,139 40 23,416 174 52,993 239 99,548
Americas (excluding U.S.) 3 1,836 21 7,266 19 5,910 43 15,012
Europe 71 18,423 54 15,978 26 7,448 151 41,849
Middle East & Africa 6 2,276 43 13,807 1 410 50 16,493
Asia Pacific 8 3,959 58 21,610 8 2,980 74 28,549
Curio - A Collection by Hilton
U.S. 1 998 4 2,172 5 3,170
DoubleTree by Hilton
U.S. 11 4,268 29 8,521 256 61,949 296 74,738
Americas (excluding U.S.) 3 637 13 2,421 16 3,058
Europe 13 3,848 42 7,267 55 11,115
Middle East & Africa 7 1,464 4 488 11 1,952
Asia Pacific 35 10,001 2 965 37 10,966
Embassy Suites Hotels
U.S. 10 2,523 40 10,647 164 37,545 214 50,715
Americas (excluding U.S.) 3 653 5 1,282 8 1,935
Hilton Garden Inn
U.S. 2 290 5 586 546 74,537 553 75,413
Americas (excluding U.S.) 5 639 25 3,852 30 4,491
Europe 19 3,509 17 2,688 36 6,197
Middle East & Africa 1 180 1 180
Asia Pacific 6 921 6 921
Hampton Hotels
U.S. 1 130 50 6,178 1,869 180,973 1,920 187,281
Americas (excluding U.S.) 7 935 65 7,884 72 8,819
Europe 7 1,091 25 3,770 32 4,861
Asia Pacific 1 72 1 72
Homewood Suites by Hilton
U.S. 27 2,921 320 35,809 347 38,730
Americas (excluding U.S.) 2 224 15 1,699 17 1,923
Home2 Suites by Hilton
U.S. 46 4,791 46 4,791
Americas (excluding U.S.) 1 97 1 127 2 224
Other 3   1,272   3   957       6   2,229  
Lodging 148 60,532 518 151,149 3,652 502,202 4,318 713,883
Hilton Grand Vacations     44   6,818       44   6,818  
Total 148   60,532   562   157,967   3,652   502,202   4,362   720,701  
____________

(1)

  Fluctuation in terms of percentage change is not meaningful.

(2)

Timeshare capital expenditures for inventory additions were $41 million and $36 million for the three months ended March 31, 2015 and 2014, respectively, and timeshare costs of sales were $26 million and $36 million for the three months ended March 31, 2015 and 2014, respectively.
____________

(1)

  This amount includes expense that was recognized in general, administrative and other expenses related to the share-based compensation prior to and in connection with the initial public offering. Amount excludes share-based compensation expense related to awards issued under the 2013 Omnibus Incentive Plan.

(2)

The amount for the three months ended March 31, 2015 includes $145 million of gain on sales of assets, net relating primarily to the sale of the Waldorf Astoria New York, $13 million of severance costs recognized in general, administrative and other related to the sale of the Waldorf Astoria New York and the following items recognized related to the sale of the Waldorf Astoria New York and properties acquired from the proceeds of that sale:
-- $6 million of expense from the reduction of the remaining unamortized deferred issuance costs resulting from the repayment of the Waldorf Astoria Loan;

-- $19 million of acquisition related transaction costs; and

-- $13 million of expense from the reduction of the remaining unamortized management contract intangible asset related to properties that were managed by Hilton prior to the acquisition.

(3)

On March 31, 2015, a foreign jurisdiction, where the Company had deferred tax assets, reduced the statutory rate resulting in a reduction to the deferred tax asset and a corresponding recognition of income tax expense of $6 million, including $2 million attributable to noncontrolling interests.
____________

(1)

  To facilitate comparison with the Company's competitors, beginning in the first quarter of 2015 Adjusted EBITDA excluded all share-based compensation expense. Historical results have been revised to reflect this change in the definition to allow for comparability.

(2)

The three months ended March 31, 2014 includes a benefit of $47 million resulting from the reversal of accruals associated with a cash-based, long-term incentive plan that was terminated in February 2014 and replaced by the 2013 Omnibus Incentive Plan.

(3)

Represents gains and losses on the acquisitions and dispositions of property and equipment and investments in affiliates.

(4)

Represents adjustments for reorganization costs, severance, offering costs and other items.
   
HILTON WORLDWIDE HOLDINGS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
NET DEBT
(unaudited, in millions)
 
March 31, December 31,
2015 2014
Long-term debt, including current maturities $ 10,582 $ 10,813
Non-recourse debt, including current maturities(1) 248   248  
Total long-term debt and non-recourse debt 10,830 11,061
Add: Hilton's share of unconsolidated affiliate debt 219 221
Less: cash and cash equivalents (547 ) (566 )
Less: restricted cash and cash equivalents (269 ) (202 )
Net debt $ 10,233   $ 10,514  
   
HILTON WORLDWIDE HOLDINGS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
OUTLOOK: ADJUSTED EBITDA
FORECASTED 2015
(in millions)
 

Three Months Ending

June 30, 2015

Revised Actual
Low Case   High Case Q2 2014(1)
Net income attributable to Hilton stockholders $ 212 $ 224 $ 209
Interest expense 142 142 158
Interest expense included in equity in earnings (losses) from unconsolidated affiliates 2 2 3
Income tax expense 142 150 121
Depreciation and amortization 174 174 158
Depreciation and amortization included in equity in earnings (losses) from unconsolidated affiliates 7   7   7  
EBITDA 679 699 656
Net income attributable to noncontrolling interests 3 3 3
Loss (gain) on foreign currency transactions (32 )
FF&E replacement reserve 12 12 12
Share-based compensation expense 27 27 29
Other gain, net(2) (11 )
Other adjustment items(3) 19   19   17  
Adjusted EBITDA $ 740   $ 760   $ 674  
   

Year Ending

December 31, 2015

Revised Actual
Low Case   High Case Full Year 2014(1)
Net income attributable to Hilton stockholders $ 806 $ 842 $ 673
Interest expense 569 569 618
Interest expense included in equity in earnings (losses) from unconsolidated affiliates 8 8 10
Income tax expense 604 628 465
Depreciation and amortization 704 704 628
Depreciation and amortization included in equity in earnings (losses) from unconsolidated affiliates 25   25   27  
EBITDA 2,716 2,776 2,421
Net income attributable to noncontrolling interests 11 11 9
Gain on sales of assets, net (145 ) (145 )
Loss (gain) on foreign currency transactions 18 18 (26 )
FF&E replacement reserve 48 48 46
Share-based compensation expense(4) 102 102 74

Other loss (gain), net(2)

25 25 (37 )
Other adjustment items(3) 35   35   63  
Adjusted EBITDA $ 2,810   $ 2,870   $ 2,550  
____________

(1)

  To facilitate comparison with the Company's competitors, beginning in the first quarter of 2015 Adjusted EBITDA excluded all share-based compensation expense. Historical results have been revised to reflect this change in the definition to allow for comparability.

(2)

Represents gains and losses on the acquisition of a controlling financial interest in certain hotels and dispositions of property and equipment and investments in affiliates in 2014.

(3)

Represents adjustments for reorganization costs, severance, offering costs and other items.

(4)

Full year 2014 includes a benefit of $47 million resulting from the reversal of accruals associated with a cash-based, long-term incentive plan that was terminated in February 2014 and replaced by the 2013 Omnibus Incentive Plan.
 
HILTON WORLDWIDE HOLDINGS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
OUTLOOK: NET INCOME AND EPS, ADJUSTED FOR SPECIAL ITEMS
FORECASTED 2015
(in millions, except per share data)
 

Three Months Ending

June 30, 2015

Low Case   High Case
Net income attributable to Hilton stockholders, before special items $ 212   $ 224  
Net income, adjusted for special items $ 212   $ 224  
 
Diluted EPS, before special items $ 0.21   $ 0.23  
Diluted EPS, adjusted for special items $ 0.21   $ 0.23  
 

Year Ending

December 31, 2015

Low Case   High Case
Net income attributable to Hilton stockholders, before special items $ 806 $ 842
Share-based compensation expense(1) 2 2
Net gain on asset acquisitions and dispositions(2) (94 ) (94 )
Foreign deferred tax adjustment(3) 4   4  
Total special items before tax (88 ) (88 )
Income tax benefit (expense) on special items 53   53  
Net income, adjusted for special items $ 771   $ 807  
 
Diluted EPS, before special items $ 0.82 $ 0.86
Total per share special items before tax (0.09 ) (0.09 )
Per share income tax benefit (expense) on special items 0.06   0.06  
Diluted EPS, adjusted for special items $ 0.79   $ 0.83  
____________

(1)

  This amount includes expense that was recognized in general, administrative and other expenses related to the share-based compensation prior to and in connection with the initial public offering. Amount excludes share-based compensation expense related to awards issued under the 2013 Omnibus Incentive Plan.

(2)

This amount includes $145 million of gain on sales of assets, net relating primarily to the sale of the Waldorf Astoria New York, $13 million of severance costs recognized in general, administrative and other related to the sale of the Waldorf Astoria New York and the following items recognized related to the sale of the Waldorf Astoria New York and properties acquired from the proceeds of that sale:
-- $6 million of expense from the reduction of the remaining unamortized deferred issuance costs resulting from the repayment of the Waldorf Astoria Loan;

-- $19 million of acquisition related transaction costs; and

-- $13 million of expense from the reduction of the remaining unamortized management contract intangible asset related to properties that were managed by Hilton prior to the acquisition.

(3)

In Q1 2015, a foreign jurisdiction, where the Company had deferred tax assets, reduced the statutory rate resulting in a reduction to the deferred tax asset and a corresponding recognition of income tax expense of $6 million, including $2 million attributable to noncontrolling interests.
 
HILTON WORLDWIDE HOLDINGS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
ADJUSTED EBITDA - HILTON SYDNEY
(in millions)
 
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