Business Analysis of Hilton

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Hilton

Business Overview

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. It operates through Management and Franchise, and Ownership segments. The company engages in the hotel management and licensing of its brands to franchisees. It operates hotels under the Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Hilton Hotels & Resorts, Curio - A Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, and Tapestry Collection by Hilton brands. The company operates in North America, South America, and Central America, including all Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. As of August 08, 2017, it had approximately 5,000 properties with 812,000 rooms in 103 countries and territories. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

Hilton

Hilton


R&P Rank: 244
Sector: Travel & Leisure
Industry:Hotels and Resorts
H.Q Location:Virginia
Website: www.hiltonworldwide.com
Company Address:
7930 JONES BRANCH DRIVE, SUITE 1100, MCLEAN VA 22102
Ph:703-883-1000

Business Analysis of Hilton

The Travel & Leisure Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Hilton compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Hilton to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Hilton with an interactive chart.

  1. Revenue Growth: Hilton reported a revenue growth of 3.5% year-on-year during 2016. Hotels and Resorts Industry grew at 9.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Hilton spent 34.7% of its total revenues on COGS. Hotels and Resorts industry average (COGS share of revenue) in the same period was 61.6%
  3. R&D share of Revenues: Hilton R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Hilton spent 5.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Hotels and Resorts industry average SG&A spending in the same period was 9.6%
  5. Inventory share of Revenues: As a percentage of revenue, Hilton spent 4.6% of its total revenues on Inventories. Hotels and Resorts industry average Inventory spending in the same period was 6.5%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Hilton invested 21.0% of its total revenues on Accounts Payable (A/P) Hotels and Resorts industry average Accounts Payable investment in the same period was 9.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Hilton invested 18.1% of its total revenues on Accounts Receivable (A/R). Hotels and Resorts industry average Accounts Receivable investment in the same period was 19.3%
  8. PP&E share of Revenues: As a percentage of revenue, Hilton invested 76.6% of its total revenues on Property, Plants, and Equipments (PP&E). Hotels and Resorts industry average PPE investment in the same period was 57.4%
  9. Intangibles share of Revenues: As a percentage of revenue, Hilton invested 104.6% of its total revenues on Intangibles. Hotels and Resorts industry average Intangibles investment in the same period was 72.5%
  10. Net Margins: Hilton Net Margins in the year 2016 were 3.0%. Hotels and Resorts industry average Net Margins in the same period were 5.8%

Sector and Industry Association of Hilton

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Hilton is associated with Travel & Leisure Sector and Hotels and Resorts Industry.

Travel & Leisure sector is comprised of the following industries: Airline; Car Rental Services; Casino; Hotels and Resorts; Recreational Services. The definitions for each of the industries is as follows:

  • Airline industry includes companies primarily engaged in providing passenger air transport.
  • Car Rental Services industry includes companies engaged in providing car rental services.
  • Casino industry includes providers of gambling and casino facilities.
  • Hotels and Resorts industry includes operators of hotels, motels, lodges, resorts, spas and campgrounds.
  • Recreational Services industry includes providers of leisure facilities and services, such as amusement and theme parks, fitness centers, cruise lines, movie theaters, racetracks, and sports teams.

Industry Ranking of Hilton

With $11.7 billion revenues, Hilton ranked number 2 of all the companies in the US Hotels and Resorts industry. There were a total of 14 public companies in the US Hotels and Resorts industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Hotels and Resorts industry by revenues during 2016 were:

  1. Marriott International ($17.1 billion)
  2. Hilton ($11.7 billion)
  3. Wyndham Worldwide ($5.6 billion)
  4. Hyatt Hotels ($4.4 billion)
  5. Marriott Vacations Worldwide ($1.8 billion)
  6. Vail Resorts ($1.6 billion)
  7. ILG ($1.4 billion)
  8. Extended Stay America ($1.3 billion)
  9. La Quinta Holdings ($1 billion)
  10. Choice Hotels International ($924.6 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Hiltonand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of hilton

Marriott International (MAR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Marriott International Inc with $17 billion revenues in the year 2016 was the number 1 Hotels and Resorts company. Read this report to know the top competitors of Marriott International and identify growth and cost optimization opportunities of Marriott International

Wyndham Worldwide (WYN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Wyndham Worldwide Corp with $6 billion revenues in the year 2016 was the number 3 Hotels and Resorts company. Read this report to know the top competitors of Wyndham Worldwide and identify growth and cost optimization opportunities of Wyndham Worldwide

Hyatt Hotels (H) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Hyatt Hotels Corp with $4 billion revenues in the year 2016 was the number 4 Hotels and Resorts company. Read this report to know the top competitors of Hyatt Hotels and identify growth and cost optimization opportunities of Hyatt Hotels

Marriott Vacations Worldwide (VAC) Business Analysis – Analyze Historical Performance, Strategic...

Marriott Vacations Worldwide Corp with $2 billion revenues in the year 2016 was the number 5 Hotels and Resorts company. Read this report to know the top competitors of Marriott Vacations Worldwide and identify growth and cost optimization opportunities of Marriott Vacations Worldwide

Vail Resorts (MTN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Vail Resorts Inc with $2 billion revenues in the year 2016 was the number 6 Hotels and Resorts company. Read this report to know the top competitors of Vail Resorts and identify growth and cost optimization opportunities of Vail Resorts

ILG (ILG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

ILG, Inc. with $1 billion revenues in the year 2016 was the number 7 Hotels and Resorts company. Read this report to know the top competitors of ILG and identify growth and cost optimization opportunities of ILG

Revenues Analysis

Hilton (HLT) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Hilton Worldwide Holdings Inc. (HLT) from 2012 to 2016. Hilton generated a total of $11.7 billion revenues during 2016. Hilton reported a revenue growth of 3.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Hilton (HLT) Revenues And Revenue Growth From 2010 To 2016

This report provides the last seven years revenues and revenue growth of Hilton Worldwide Holdings Inc. (HLT) from 2010 to 2016. Hilton generated a total of $11.7 billion revenues during 2016. Hilton reported a revenue growth of 3.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Hilton (HLT) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Hilton Worldwide Holdings Inc. (HLT) revenue growth with Hotels and Resorts industry growth during the last five years from 2012 to 2016. Hilton reported a revenue growth of 3.5% year-over-year during 2016. The Hotels and Resorts industry growth was 9.1% year-over-year during 2016. Hilton growth was slower than the industry during 2016.

Profit Analysis

Hilton (HLT) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Hilton Worldwide Holdings Inc. (HLT) from 2012 to 2016. Hilton reported a total net income of $348 million during 2016. Hilton generated a total of $11.7 billion revenues during 2016. Hilton net profit margin was 3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.