System-wide RevPAR increased by 2.5%, driven by a 1.8% increase in ADR and a 0.4 percentage point increase in occupancy. This indicates improved demand and pricing power across Hilton's portfolio.

Hilton added 186 hotels and 20,100 rooms to its system, demonstrating continued expansion of its global network. This growth is driven by both new openings and conversions.

Hilton's development pipeline continues to grow, reaching 3,600 hotels and 503,400 rooms. This indicates strong future growth potential and continued demand for Hilton's brands.

Hilton repurchased $898 million of its common stock during the quarter, demonstrating management's confidence in the company's future prospects and commitment to returning capital to shareholders.

The company is focused on expanding its fee-based business through management and franchise contracts, which require limited capital investment. This strategy allows Hilton to grow its revenues and overall return on invested capital.

Licensing fees increased due to strategic partnerships, primarily resulting from activity under co-branded credit card arrangements and Hilton Grand Vacations (HGV). Increased fees from HGV resulted from increased timeshare revenues earned by HGV, inclusive of the impact of adding new timeshare properties to our system between the periods.

The current economic environment, including elevated levels of inflation and interest rates, has posed certain challenges to the execution of our growth strategy, which in some cases have included and may continue to include delays in openings and new development.

The company is exposed to market risk primarily from changes in one-month SOFR and foreign currency exchange rates. These rate changes may affect future income, cash flows, and the fair value of the company's assets and liabilities.

As of March 31, 2025, Hilton had performance guarantees with expirations ranging from 2025 to 2043 and possible cash outlays totaling $23 million. Additionally, debt guarantees and letters of credit had expirations ranging from 2031 to 2033 and remaining possible cash outlays totaling $45 million.

Hilton is one of the largest global hospitality companies, with 8,602 properties comprising 1,282,192 rooms in 139 countries and territories as of March 31, 2025.

As of March 31, 2025, Hilton had 218 million members in its award-winning guest loyalty program, Hilton Honors, an increase of 16 percent from March 31, 2024.

The company excludes strategic partner hotels from its comparable hotels when calculating key metrics. Of the 8,497 hotels in our system as of March 31, 2025, 449 hotels were strategic partner hotels and 6,503 hotels were classified as comparable hotels.

The $8 million decrease in ownership expenses included a decrease of $4 million on a currency neutral basis and a $4 million decrease resulting from favorable fluctuations in foreign currency exchange rates.

The decrease in general and administrative expenses was primarily due to a decrease in costs related to payroll and other compensation costs.

The decrease in other expenses was primarily due to decreased procurement volume from our purchasing operations with properties outside of our system.

The increase in depreciation and amortization expenses was primarily related to software placed in service between the periods.

Net cash used in investing activities primarily included cash flows related to: (i) capitalized software costs that were related to various systems initiatives for the benefit of both our hotel owners and our overall corporate operations

Based on an evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures, as of the end of the period covered by this Quarterly Report on Form 10-Q, were effective to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms

Hilton repurchased approximately 3.7 million shares of its common stock for $890 million during the three months ended March 31, 2025. As of March 31, 2025, approximately $3.5 billion remained available for share repurchases under the stock repurchase program.

The company declared cash dividends of $0.15 per share, consistent with the prior year. This demonstrates a commitment to returning capital to shareholders through dividends.

In April 2025, we issued notice to borrow $500 million under the Revolving Credit Facility and plan to use the proceeds, together with available cash, to repay, at maturity, all $500 million in aggregate principal amount of the May 2025 Senior Notes, plus accrued and unpaid interest.

There have been no material changes from the risk factors previously disclosed under "Part I-Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

The 10-Q filing does not explicitly detail any new or ongoing ESG initiatives. This suggests that ESG activities may not be a primary focus of this particular report, or that they are being addressed through other channels.

We have a long-term investment policy that is focused on the preservation of capital and maximizing the return on new and existing investments and returning available capital to stockholders through dividends and share repurchases.

The current economic environment, including elevated levels of inflation and interest rates, has posed certain challenges to the execution of our growth strategy, which in some cases have included and may continue to include delays in openings and new development.

Hilton is one of the largest global hospitality companies, with 8,602 properties comprising 1,282,192 rooms in 139 countries and territories as of March 31, 2025.

System-wide RevPAR increased during the three months ended March 31, 2025, supported by improvements in system-wide ADR, which included the impact of inflation, an increase in occupancy in all regions and increased group performance in all regions.