Investor Presentation
MAY 2015
Disclaimer
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our
expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical
statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,”
“continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the
negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties,
including, among others, risks inherent to the hospitality industry, macroeconomic factors beyond our control, competition for hotel guests,
management and franchise agreements and timeshare sales, risks related to doing business with third-party hotel owners, our significant
investments in owned and leased real estate, performance of our information technology systems, growth of reservation channels outside of our
system, risks of doing business outside of the United States and our indebtedness, as well as those described under the section entitled “Risk
Factors” in Hilton Worldwide Holdings Inc.’s Annual Report on Form 10-K for the year ended December 31, 2014, as such factors may be
updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are
or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors
should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this
presentation and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as
a result of new information, future developments or otherwise, except as required by law.
This presentation includes certain non-GAAP financial measures, including EPS, adjusted for special items, Adjusted EBITDA (“Adj. EBITDA”),
Adj. EBITDA Margin and Net Debt. Non-GAAP financial measures such as EPS, adjusted for special items, Adj. EBITDA, Adj. EBITDA Margin
and Net Debt should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with U.S. GAAP.
Please refer to the Appendix and footnotes of this presentation for a reconciliation of the non-GAAP financial measures included in this
presentation to the most directly comparable financial measures prepared in accordance with U.S. GAAP.
Slides in this presentation include certain Adj. EBITDA amounts that are used only for illustrative purposes to present illustrative Adj. EBITDA
amounts by applying assumptions to existing room pipeline and timeshare interval inventory, average HOA management, resort operations and
other fees, increases of in-place rates and increases in RevPAR, as applicable, in each case based on LTM 3/31/2015 information. These
amounts do not represent projections of future results and may not be realized. Value information on such slides that is derived from such
illustrative Adj. EBITDA amounts is indicative only, based upon a number of assumptions, and does not reflect actual valuation. Please review
carefully the detailed footnotes in this presentation.
2
© 2015 Hilton Worldwide Confidential and Proprietary
2
Company Highlights
Hilton Worldwide is one of the largest hotel companies in the world with 4,362 properties and 721,000
rooms in 94 countries and territories
•! Industry-Leading Brands that Drive Profits for Our Owners: 12 brands with an average global RevPAR premium of 15%(a)
•! Industry-Leading Growth: Tremendous growth since the 2007 Blackstone acquisition despite the global economic downturn
Room Growth
Room Count
Rank(b)
-! System
45%
721,000 rooms
#2
-! Pipeline
107%
240,000 rooms
#1
-! Under Construction
202%
126,000 rooms
#1
•! Increasingly Capital Light Business Model: Growth concentrated in high-margin, more predictable Management and Franchise
segment and transformed, capital efficient Timeshare segment, resulting in higher cash flow generation
•! Iconic Real Estate Portfolio with Significant Operating Upside and Embedded Value
•! Powerful Long-Term Global Macro Industry Trends and Strong Current Fundamentals
•! Disciplined Capital Allocation
•! Best-In-Class Management Team
(a)! Source: STR (12 months ended 12/31/2014). “RevPAR” or “Revenue per Available Room” represents hotel room revenue divided by room nights available to guests for a given period.
(b)! Source: STR Global Census, April 2015 (Adjusted to March 2015) and STR Global New Development Pipeline, March 2015. Rank represents the total number of rooms currently in Hilton’s System, Pipeline and Under Construction relative to its competitors.
© 2015 Hilton Worldwide Confidential and Proprietary
3
4
Company Overview
Hilton is diversified across business segments, geographies and chain scales, with a focus on growing
its capital light segments (Management and Franchise, Timeshare)
Adj. EBITDA by Segment(a)
Increasingly
Capital Light
Timeshare
12%
Management and
Franchise
53%
Adj. EBITDA by Geography(a)
Middle East &
Americas
Africa
Non-U.S.
3%
4%
Asia Pacific
7%
Current Rooms by Chain Scale(b)
Luxury
2%
Other
1%
Upper Midscale
29%
Upper Upscale
36%
Europe
9%
Ownership
35%
U.S.
78%
Upscale
32%
(a)! Based on LTM 3/31/2015 Excludes Corporate and Other Adj. EBITDA.
(b)! Room count as of 3/31/2015. Other includes HGV.
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© 2015 Hilton Worldwide Confidential and Proprietary
5
Hilton Value Proposition
Hilton's strong brands and commercial delivery lead to successful financial outcomes for its owners
and the Company
Financial
Performance
Value Proposition
Strong
Brands &
Commercial
Services
Platform
•! Value proposition starts with award-winning
brands and industry-leading commercial
services platform
•! This leads to satisfied customers, including
approximately 46 million HHonors loyalty
members
Satisfied
Customers
Leading
Hotel
Supply &
Pipeline
•! Which results in a strong global RevPAR
premium of 15%
•! These hotel operating premiums drive strong
financial returns, which benefit our hotel owners
Satisfied
Owners
Premium
Performance
•! Satisfied existing and new owners continue to
invest in growing Hilton’s brands, making us a
global leader in hotel supply and pipeline
•! We believe the reinforcing nature of these
activities will allow Hilton to outperform the
competition
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© 2015 Hilton Worldwide Confidential and Proprietary
Our Consistent Growth Strategy Drives Financial
Performance. . .
1
Align Culture and
Organization
•! Continue fostering an aligned, performance-driven culture based on common vision,
mission, values and key strategic priorities
•! Continue to enhance and optimize our commercial engines; we believe we have the
most formidable sales, pricing, marketing and distribution platform in the industry
•! Accelerate growth of capital light segments
2
Maximize
Performance
3
Strengthen and
Expand Brand
Platform
•! Optimize brand management to continue increasing RevPAR premiums
•! Continue building customer loyalty through HHonors enhancements
•! Explore expansion of brand portfolio to serve new customer segments
Expand Global
Footprint
•! Drive new unit growth in every region by effectively allocating development resources
•! Continue to build on industry-leading pipeline with unit growth focused on capital light
Management and Franchise segment
•! Introduce the right brands with the right product positioning in targeted markets
4
•! Maximize value of Ownership segment via EBITDA growth and execution of valueenhancement opportunities
•! Focus on maximizing corporate and on-property cost efficiencies to drive profitability
•! Maintain disciplined capital allocation strategy and continue to delever
6
© 2015 Hilton Worldwide Confidential and Proprietary
. . .as Seen in our Strong Performance Post IPO
Hilton continues to execute on its proven business strategy while maintaining
a disciplined financial policy
1
2
3
Outperformance
on Top Line,
Margin
and Bottom Line
Market Leading
System Growth
Building
Significant Equity
Value
•! Q1 2015 performance compared to Q1 2014:
-! System-wide comparable RevPAR increased 6.6%
-! Adj. EBITDA margin increased 320 basis points to 36.3%
-! Adj. EBITDA increased 18% to $599 million
•! 240,000 room pipeline is the largest in our history and in the industry; 56% outside U.S.
•! 126,000 rooms under construction, the largest in the industry; 70% outside U.S.
•! Leading net unit growth of 6.0% in 2014(a)
•! Growth requires de minimis amounts of our capital
•! Recently launched two new brands – an accessible lifestyle brand, Canopy by Hilton, and
Curio - A Collection by Hilton for 4- to 5-star iconic hotels
•! Disciplined capital allocation, substantially all free cash flow used to pre-pay debt
•! $2.75 billion of senior secured term loan facility repaid since IPO, reduced net
leverage to 3.9x(b)
•! Intend to pay dividend once leverage goals are reached in 2H 2015
•! Completed meaningful value enhancement opportunities at the Hilton New York, Hilton
Hawaiian Village and Waldorf Astoria New York, agreed to sell Hilton Sydney to further
deleverage
(a)! Net unit growth is within the Management and Franchised segment.
(b)! 3.9x net leverage as of 3/31/2015. Please refer to non-GAAP reconciliation on slide 26.
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© 2015 Hilton Worldwide Confidential and Proprietary
6
Waldorf NY Sale and 1031 Exchange Will Realize Embedded
Shareholder Value
Sold Waldorf Astoria
New York for 32x LTM
Adj. EBITDA of $61
million (6/30/2014)
•! Hilton will continue to operate the property under a 100-year management
agreement
•! Buyer plans to fully redevelop the asset, while upholding and enhancing the
traditions of the hotel
Deployed proceeds at
~13x 2015E property
Adj. EBITDA(a),
potentially more than
doubling EBITDA
contribution to company
•! Institutional quality, landmark assets that complement our owned portfolio
•! Adds distribution to high growth urban markets, San Francisco and Silicon
Valley, and adds owned assets in strong Florida resort markets
•! No meaningful incremental capex requirements; executed purchases quickly,
capturing significant EBITDA and value arbitrage
Hilton Bonnet Creek
1,001 rooms
Waldorf Orlando
498 rooms
Parc 55 (Hilton)
1,024 rooms
WA Casa Marina
311 rooms
(a)! Please refer to non-GAAP reconciliation on slide 26.
(b)! The Cypress Hotel will be rebranded and is expected to join the Curio brand.
The WA Reach Resort
150 rooms
The Cypress Hotel (b),
Cupertino
224 rooms
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© 2015 Hilton Worldwide Confidential and Proprietary
Market Leading System Growth Further Supported by New
Brand Launches and Globally Deploying Current Brands
Furthers our goal to serve any customer anywhere in the world for any lodging need they have –
driving more customer loyalty and higher market share premiums
•! Accessible Lifestyle brand that opens up demand more broadly, enabling us to
serve more customers and add meaningfully to our growth over time
•! Designed with a light, organic and contemporary look; will reflect the local
neighborhood flavor and culture where each hotel is located
•! 15 hotels in the pipeline or with signed letters of intent(a)
•! A collection of unique 4- to 5-star hotels, largely conversion oriented
•! Have opened 6 properties totaling over 3,300 rooms since launch in June
2014, including the SLS Las Vegas Hotel & Casino, The Highland Dallas, The
Diplomat in Hollywood, FL, The Franklin Hotel Chapel Hill, The Providence
Biltmore, and the Boulders in AZ
•! 34 hotels in the pipeline or with signed letters of intent(a)
•! Exclusive license agreement with Plateno Hotels to develop the mid-scale 3- to
3.5-star hotel market in China with the Hampton brand
•! Goal is to deliver over 400 hotels, with the first expected to open in 2015
•! Should accelerate our efforts to gain broad geographic and chain scale
distribution in China
(a)! As of March 31st, 2015
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© 2015 Hilton Worldwide Confidential and Proprietary
Company Overview
Industry-leading global brands that drive a 15% global RevPAR premium
Luxury
Full Service
Focused Service
Timeshare
12 brands, 721,000 rooms
Strong commercial engines support an estimated $34 billion in system revenue(a)
Loyalty
Program
~46M members,
50% system occupancy
Worldwide
Sales
Online & Mobile
Reservations
Revenue
Management
Information
Technology
Supply
Management
~$8B in annual
revenue
~426M site visits per
year
~12M reservations
per year
Pricing and yield
systems
Proprietary
platform
~$4B of influenced
spend annually
Monetized through three business segments
Management and Franchise
Ownership
Timeshare
$1,528 million Adj. EBITDA(b)
$1,015 million Adj. EBITDA(b)
$329 million Adj. EBITDA(b)
53% Aggregate Segment Adj. EBITDA(c)
35% Aggregate Segment Adj. EBITDA(c)
12% Aggregate Segment Adj. EBITDA(c)
(a)! System revenue includes estimated revenues of franchised properties in addition to revenues from properties owned, leased or managed by Hilton.
(b)! LTM 3/31/2015.
(c)! Based on LTM 3/31/2015 Adj. EBITDA excluding Corporate and Other Adj. EBITDA.
© 2015 Hilton Worldwide Confidential and Proprietary
10
Management and Franchise Segment
Hilton’s Management and Franchise segment continues to grow with limited capital investment
Management and Franchise Fees (% of Company Adj. EBITDA)(c)
•! Segment (4,170 hotels, 653,351 rooms) generated Adj.
EBITDA of $1,528 million(a)
60%
•! The vast majority of fees linked to revenue, and the
average initial contract length is 20 years, resulting in
more stable, long-term cash flows
53%
50%
47%
•! Strong growth in incentive management fees expected
as international pipeline hotels open (56% of total
pipeline is outside U.S.)
•! De minimis capital investment required by Hilton as
40%
RevPAR premiums drive investment from hotel owners
•! Recently launched new brand Curio - A Collection by
Hilton and our accessible lifestyle brand, Canopy by
Hilton
30%
27%
•! Effective franchise fee rate is 4.7% in Q1 2015, up 70
bps since FY2007, moving towards published rate of
5.5%(d)
20%
2000
Segment Adj. EBITDA
(a)!
(b)!
(c)!
(d)!
(b)
$350 million
2007
$945 million
LTM 3/31/2015.
Estimated based on public reporting.
Adj. EBITDA excluding Corporate and Other Adj. EBITDA.
Effective franchise rate calculated as total Franchise fee revenue divided by total Franchise room revenue. Published Franchise rates calculated as the weighted average of current published brand Franchise fee rates.
© 2015 Hilton Worldwide Confidential and Proprietary
LTM 3/31/15
$1,528 million
(a)
11
7
Fastest Growing Global Platform
Hilton’s strength and global positioning have enabled the Company to achieve industry-leading system
growth over the past seven years, with a 45% increase in number of rooms
Global System (# of Rooms)
At Acquisition
Today
% Growth
496,000
721,000
45%
509,000
710,000
39%
273,000
348,000
27%
564,000
710,000
26%
542,000
667,000
23%
446,000
505,000
13%
487,000
488,000
<1%
(a)
(a)
(b)
Note: “At Acquisition” metrics are as of 6/30/2007; “Today” metrics are as of 3/31/2015 for Hilton, Marriott, Starwood, Wyndham, and Accor and as of 12/31/2014 for InterContinental and Choice. This page contains additional trademarks, service marks and trade
names of others, which are the property of their respective owners. All trademarks, service marks and trade names appearing in this presentation are, to our knowledge, the property of their respective owners.
(a)!
Excludes timeshare properties due to lack of 2007 data availability for Starwood and Wyndham; Marriott spun off its timeshare business in 2011. Hilton growth excluding timeshare properties remains 45%. Marriott growth including timeshare remains 39%.
(b)!
Accor data reflects sale of Motel 6 and Studio 6 brands.
Source: Company filings
© 2015 Hilton Worldwide Confidential and Proprietary
12
8
Increasing Global Market Share
Hilton’s global market share of rooms under construction of 19.4% is approximately 4x larger than its
current market share of existing rooms, implying significant potential for continued growth
Hilton Market Share
Existing Room Supply
Rooms Under Construction
% of Total
% of Total
Industry Rank
Americas
9.0%
20.1%
#2
Europe
1.5%
22.3%
#1
Middle East & Africa
2.7%
22.6%
#1
Asia Pacific
1.2%
17.3%
#1
Global System
4.6%
19.4%
#1
Source: STR Global Census, April 2015 (adjusted to March 2015) and STR Global New Development Pipeline, March 2015.
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© 2015 Hilton Worldwide Confidential and Proprietary
9
Global Growth: Key Emerging Markets
In July 2007, the Company had six hotels open in China
Existing
Hotels
Conrad
1
Hilton
5
Total
6
Note: As of 6/30/2007; Greater China.
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© 2015 Hilton Worldwide Confidential and Proprietary
Global Growth: Key Emerging Markets (cont.)
As of March 31, 2015, the Company had 225 hotels open or in the pipeline in Greater China
Existing
Hotels
Pipeline
Waldorf Astoria
2
3
Conrad
5
9
Hilton
25
69
DoubleTree by Hilton
20
60
2
30
54
171
Hilton Garden Inn
Total (225 hotels)
1
Note: Greater China as of 3/31/2015, Map as of 12/31/2014.
15
© 2015 Hilton Worldwide Confidential and Proprietary
Global Growth: Brand Expansion
In July 2007, the Company had three non-Hilton and non-Conrad branded hotels open in Europe
Existing
Hotels
Hilton Garden Inn
3
Total
3
Note: As of 6/30/2007. Excludes 6 independent hotels.
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© 2015 Hilton Worldwide Confidential and Proprietary
Global Growth: Brand Expansion (cont.)
As of March 31, 2015, the Company had 265 non-Hilton and non-Conrad branded hotels open
or in the pipeline in Europe
Existing
Hotels
Pipeline
Waldorf Astoria
6
0
Canopy
0
1
Curio
0
3
DoubleTree by Hilton
55
26
Hilton Garden Inn
36
45
Hampton by Hilton
32
61
Total (265 Hotels)
129
136
Note: As of 3/31/2015. Excludes 4 independent hotels (2 open; 2 pipeline) and 6 timeshare properties. Map as of 12/31/2014.
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© 2015 Hilton Worldwide Confidential and Proprietary
Hilton’s Powerful Capital Light Growth Engine
The Management and Franchise segment generates substantial returns on minimal capital investment
Management and Franchise Value Creation
($ in millions)
255,000 Rooms Added Since 12/31/2007(a)
$600
$529
$500
$400
$300
$200
$123
$100
$0
M&F Capital Investment
(b)
Annual Run-Rate
Adj. EBITDA (c)
Note: The run rate Adj. EBITDA amounts presented above do not represent projections of future results and are included only for illustrative purposes to present illustrative run-rate Adj. EBITDA based on LTM 3/31/2015 M&F fees per room and the gross increase in
room count since 12/31/2007.
(a)!
Net M&F room growth (NUG) is 209,000 rooms due to rooms that have left the system.
(b)!
Capital investment of $123 million in the M&F segment represents key money only between 12/31/2007 and 3/31/2015
(c)!
Annual Run-Rate Adjusted EBITDA derived using M&F fees per room. LTM 3/31/2015 M&F fees per room reflect (i) the actual LTM 3/31/2015 M&F Adjusted EBITDA excluding fees from owned & leased hotels and timeshare properties, divided by (ii) the total
number of open M&F rooms as of 3/31/2015, multiplied by (iii) the gross number of rooms added between 12/31/2007 and 3/31/2015. Actual results in any period may vary, including to the extent that new M&F rooms achieve a different M&F fee, which differ
based on brands and geographies, as well as different occupancy levels and average daily rates.
© 2015 Hilton Worldwide Confidential and Proprietary
18
Ownership Segment
Hilton’s Ownership segment includes high-quality, trophy assets with significant operational upside
and substantial underlying net asset value
Ownership Adj. EBITDA Margin
•! Segment generated revenue of $4.3 billion and
Adj. EBITDA of $1,015 million(a)
25.0%
23.7%
24.0%
•! Diverse portfolio of 148 owned and leased hotels
22.7%
23.0%
22.0%
in 25 countries and territories
21.0%
•! Invested over $1.9 billion in the properties
between 12/31/2007 and the IPO
19.0%
•! Significant operating leverage
19.8%
20.0%
18.5%
18.0%
•! Benefiting from growth in Group business
17.0%
16.0%
•! Meaningful value enhancement opportunities
15.0%
2011
Segment Adj. EBITDA
$725 million
2012
$793 million
Note: Ownership segment Adj. EBITDA includes consolidated JVs and unconsolidated JVs (at share). Ownership portfolio size as of 3/31/2015 and includes consolidated JVs and unconsolidated JVs.
(a)!
Based on LTM 3/31/2015 segment Adj. EBITDA and segment revenue.
© 2015 Hilton Worldwide Confidential and Proprietary
2013
$926 million
LTM 3/31/15
$1,015 million(a)
19
Iconic Hotel Portfolio
The Company’s iconic owned hotel properties have significant embedded asset value. The top 10
hotels represent approximately 50% of Ownership Adj. EBITDA(a)
Hilton Hawaiian Village
2,860 rooms
Hilton New York
1,985 rooms
Hilton New Orleans
Riverside
1,622 rooms
Hilton San Francisco
1,919 rooms
Hilton Chicago
1,544 rooms
Hilton Morumbi (Sao Paolo)
503 rooms
Hilton Tokyo
811 rooms
Hilton Waikoloa Village
1,241 rooms
(a)! For LTM 3/31/2015. Top 10 hotels include Hilton Hawaiian Village, Hilton New York, Hilton New Orleans Riverside, Hilton San Francisco, Hilton Chicago, Hilton Tokyo, Hilton Waikoloa Village, Hilton Morumbi, Hilton Osaka and DoubleTree Santa Barbara.
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© 2015 Hilton Worldwide Confidential and Proprietary
Timeshare Segment
Hilton's Timeshare segment capitalizes on Hilton Grand Vacations’ system and brand, driving strong
financial results and becoming increasingly less capital intensive
Capital Light Sales (as % of Timeshare Interval Sales)(b)
•! Segment (44 Timeshare properties; over 6,800
units) generated $1.2 billion of revenue and $329
million of Adj. EBITDA(a)
•! Offers the customer an alternative lodging option –
a deeded vacation interval and access to Club
system
•! Customers spend an average of 40% more at
Hilton’s properties
70%
63%
60%
60%
50%
40%
27%
30%
20%
13%
•! Shifting segment to a more fee-for-service / capital
light model: 63% of LTM 3/31/2015 timeshare
interval sales, and 81% of current supply is capital
light
10%
1%
0%
2010
(a)! LTM 3/31/2015 segment Adj. EBITDA and segment revenue.
(b)! Capital light is defined as intervals developed by third parties.
2011
2012
2013
LTM 3/31/15
21
© 2015 Hilton Worldwide Confidential and Proprietary
Long-Term Positive Global Trends
Hilton’s business stands at the intersection of three powerful global trends
Middle Class Population
5bn
1
Expanding Middle Class
1bn
GR
4% CA
1990
2bn
5%
R
CAG
2010
2030E
Global Tourist Arrivals
(millions of arrivals)
1,809
2
Strong Growth in Global
Tourism
435
0
+ 50
on
milli
1990
(rooms per 1,000 people)
940
2010
2030E
Hotel Rooms Per Capita(a)
15.7
3
Under-Penetration in High
Growth Markets
U.S.
1.4
1.1
0.2
China
Brazil
India
(a)!
Hotel rooms as of December 2014, Population as of 2013.
Source: STR, UNWTO, World Bank, OECD
22
© 2015 Hilton Worldwide Confidential and Proprietary
Strong Industry Fundamentals
Industry forecasts predict continued low hotel supply growth. Given low levels of new supply, U.S.
industry RevPAR is expected to grow at more than 7% from 2014 to 2015
8.0%
20.0%
6.0%
15.0%
4.0%
10.0%
2.0%
5.0%
0.0%
0.0%
(2.0%)
(5.0%)
(4.0%)
(10.0%)
(6.0%)
(15.0%)
(8.0%)
RevPAR Growth
Supply & Demand Growth
RevPAR CAGR: 3%
(20.0%)
2005A
2006A
2007A
2008A
Annual Supply Growth
Projected Annual Supply Growth
2009A
2010A
2011A
2012A
Annual Demand Growth
2013A
2014A
2015E
Annual RevPAR Growth
Projected Annual Demand Growth
Projected Annual RevPAR Growth
Source: STR (2005-2014), PKF-HR (2015)
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© 2015 Hilton Worldwide Confidential and Proprietary
Strong Adj. EBITDA and Cash Flow Growth
Hilton’s Adj. EBITDA has grown at a 13% CAGR since 2010, driving significant cash flow
generation and deleveraging
Adj. EBITDA
($ in millions)
Net Debt / Adj. EBITDA
$2,641
10.5x
$2,210
8.9x
7.7x
$1,956
$1,753
5.2x
$1,564
3.9x
2010
(a)!
(b)!
2011
2012
LTM 3/31/15 (a)
2013
2010
Based on LTM 3/31/2015 Adjusted EBITDA.
Net debt as of 3/31/2015 was $10,233 million. Please refer to non-GAAP reconciliations on slide 26.
© 2015 Hilton Worldwide Confidential and Proprietary
2011
2012
2013
LTM 3/31/15 (b)
24
Recap: Key Investment Highlights
Hilton is a leading hospitality company with world-class brands, well positioned to benefit from the
continued long-term growth of the global hotel industry, with minimal capital investment
!
Premier Global Brands with an Average Global RevPAR Premium of 15%
!
Industry-Leading Pipeline of approximately 240,000 Rooms with over 126,000 Rooms Under
Construction
!
Scalable and Growing Capital Light Platform
!
Highly Diversified Portfolio with Significant Underlying Real Estate Value
!
Strong Industry Fundamentals with the Potential to Drive Organic EBITDA Growth
!
Attractive Cash Flow Generation and Deleveraging Profile
!
Proven and Experienced Management Team
25
© 2015 Hilton Worldwide Confidential and Proprietary
Appendix
© 2015 Hilton Worldwide Confidential and Proprietary
Reconciliations
Consolidated & Waldorf NY & 1031 Acquisitions Net Income to Adj. EBITDA Reconciliation & Net Debt/Adj. EBITDA Summary
($ in millions)
Net income attributable to Hilton stockholders
Interest expense
Interest expense included in equity in
earnings (losses) from unconsolidated affiliates
Income tax expense (benefit)
Depreciation and amortization
Depreciation and amortization included in
equity in earnings (losses) from unconsolidated affiliates
EBITDA
Net income (loss) attributable to noncontrolling interests
Gain on sales of assets, net
Loss (gain) on foreign currency transactions
Gain on debt restructuring
FF&E replacement reserve(a)
Share-based compensation expense
Impairment losses
Gain on debt extinguishment(b)
Impairment losses included in equity in
earnings (losses) from unconsolidated affiliates
Other gain, net(c)
Other adjustment items(d)
Adj. EBITDA
($ in millions)
Long-term debt, including current maturities
Non-recourse debt, including current maturities(f)
Total long-term and non-recourse debt
Add: Hilton’s share of unconsolidated affiliate debt
Less: cash and cash equivalents
Less: restricted cash and cash equivalents
Net Debt
Adjusted EBITDA
Net Debt/Adj. EBITDA
Year Ended
12/31/10
$128
946
16
308
574
48
2,020
(17)
(18)
(789)
48
56
24
-
Year Ended
12/31/11
$253
643
12
(59)
564
48
1,461
2
21
57
19
20
-
Year Ended
12/31/12
$352
569
Year Ended
12/31/13
$415
620
Year Ended
12/31/14
$673
618
13
214
550
13
238
603
10
465
628
9
545
650
34
1,732
32
1,921
27
2,421
24
2,537
45
45
46
313
(229)
9
(26)
46
32
-
8
(145)
6
48
127
-
(37)
63
$2,508
(9)
69
$2,641
7
(23)
68
50
54
-
6
(8)
242
$1,564
141
(19)
51
$1,753
19
(15)
64
$1,956
(7)
76
$2,210
12/31/10(e)
$16,995
541
17,536
313
(796)
(619)
$16,434
12/31/11
$16,311
481
16,792
331
(781)
(658)
$15,684
12/31/12
$15,575
420
15,995
298
(755)
(550)
$14,988
12/31/13
$11,755
296
12,051
302
(594)
(266)
$11,493
12/31/14
$10,813
248
11,061
221
(566)
(202)
$10,514
3/31/15
$10,582
248
10,830
219
(547)
(269)
$10,233
$1,956
7.7x
$2,210
5.2x
$2,550
4.1x
$2,641
3.9x
$1,564
10.5x
$1,753
8.9x
1031 Acquisitions
Forecast for the year ending 12/31/15
Low End
$132
(3)
129
(18)
(22)
(59)
30
($ in millions)
Adjusted EBITDA
Less: Other adjustment items
EBITDA
Less: Interest expense
Less: Income tax expense
Less: Depreciation and amortization
Net income attributable to Hilton stockholders
(a)!
(b)!
(c)!
(d)!
(e)!
(f)!
LTM
3/31/15
$700
609
High End
$138
(3)
135
(18)
(24)
(59)
34
WANY Sale
LTM 6/30/14
$61
(2)
59
(9)
(9)
(26)
15
Represents FF&E replacement reserves established for the benefit of lessors for requisition of capital assets under certain lease agreements.
Represents the gain recognized in our consolidated statement of operations as a result of the debt refinancing which occurred in 2013. See Note 13: “Debt” to our consolidated financial statements included in our 2014 Form 10-K for further information.
Other gain, net includes gains and losses on the acquisitions of a controlling financial interest in certain hotels and dispositions of property and equipment and investments in affiliates, as well as lease restructuring transactions.
Represents adjustments for reorganization costs, severance, offering costs and other items.
Adjusted for debt restructuring costs and one-time payment obligation of $216 million for a contractual asset purchase
Excludes non-recourse timeshare financing receivables credit facility and the notes related to the securitization transactions.
© 2015 Hilton Worldwide Confidential and Proprietary
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© 2015 Hilton Worldwide Confidential and Proprietary