Following a softer third quarter, Hilton executives touted solid end-of-year results in its fourth-quarter and full-year 2025 earnings report, released Wednesday.
Year over year, systemwide comparable RevPAR was up 0.5% and 0.4% for the quarter and full year, respectively, driven by strong performance in the Europe, Middle East, and Africa region, and group and leisure transient growth, said CFO Kevin Jacobs during a Wednesday earnings call. In the U.S., RevPAR decreased by 1.6% “due to pressures across business, group and transient due to the prolonged government shutdown.”
Total revenue in the fourth quarter was $3.09 billion, and adjusted EBITDA was $946 million — up 10% year over year and surpassing analyst expectations, Jacobs said.
Additionally, Hilton opened 190 new hotels in the fourth quarter, totaling 26,000 rooms. For the full year, Hilton opened nearly 970,000 new rooms, President and CEO Chris Nassetta said on the call, representing net unit growth of 6.7% and its “biggest year of organic openings.”
The hospitality giant also approved 37,400 new rooms for development during the fourth quarter, bringing its development pipeline to a record 520,500 rooms by the end of 2025 — up 4% compared to the end of 2024.
Nassetta added that "conversions remain integral to [Hilton’s] growth,” accounting for nearly 40% of room openings in 2025. The company’s January launch of Apartment Collection by Hilton marked its foray into the “fast-growing” apartment-style lodging segment, which he said presents a “clear white space in the market.”
“It provides owners with flexibility to preserve a property's unique character, while benefiting from Hilton's powerful commercial engine, global distribution and award-winning Hilton Honors loyalty program,” he said.
Hilton’s newly minted Outset Collection, alongside Apartment Collection and other new brands in 2026, will be “incremental drivers of our conversion momentum in the years to come.”
Despite persistent economic turmoil in the U.S., Nassetta said he feels optimistic about the future as micro and macro forces are “converging in a really positive way,” thanks to favorable fiscal policies and a deregulatory environment supported by the current administration.
“Intellectually, it's really hard for me — when I lift up above the noise of day-to-day politics — to not feel like those things are going to be really good for the economy, and it's undeniable,” he said, echoing sentiments he voiced in Hilton’s third-quarter call.
More brands on the horizon
Nassetta hinted that Hilton plans to expand its portfolio with the launch of new brands later this year.
“The things that I think are most imminent are another lifestyle brand in between Motto and Canopy,” he said, envisioning something in the “upper-midscale, lower upper-upscale” realm.
He noted the opening of the reportedly more accessible Undergraduate brand is “imminent” and expected in the next 60 days. Hilton is also eyeing a student-housing concept associated with Graduate, Nassetta said.
“Against this backdrop of continued owner demand for conversion-friendly brands, we have been evolving our brand portfolio and creating opportunities to build the next chapter in Hilton's growth,” he said.
2026 outlook
Nassetta predicts 2026 will be stronger than 2025, fueled by an expected increase in international travel, improved U.S. economic conditions, major sporting events and continued limited supply.
“We're confident that we're well-positioned to continue driving strong performance in 2026 and beyond,” he said.
Hilton forecasts systemwide RevPAR to increase between 1% and 2% year over year for both the first quarter and full year 2026.
“Even with the storms, the beginning of this year has been better,” Nassetta said, referencing the fatal Winter Storm Fern that took place in late January.
Additionally, for 2026, Hilton expects “new development construction starts to be up over 20%, bringing us back close to 2019 levels, signaling healthy developer appetite.”
Challenges to future growth include softer government and weaker international inbound travel. But the 2026 FIFA World Cup and America’s 250th birthday celebrations will likely provide a boost to the company’s bottom line and present “substantial” opportunities for hotels, according to a JLL report.
