Hilton subsidiary to offer $500 million in senior notes due 2033

MCLEAN, Va. - Hilton Domestic Operating Company Inc., an indirect subsidiary of Hilton Worldwide Holdings Inc. (NYSE:HLT), a $63.3 billion market cap hospitality giant currently trading near its 52-week high, announced Tuesday its intention to offer $500 million in Senior Notes due 2033.

According to the company’s press release statement, the proceeds from the notes offering, combined with available cash, will be used to repay $515 million of existing debt under the issuer’s senior secured revolving credit facility. InvestingPro data shows Hilton operates with a moderate debt level, maintaining a total debt of $11.88 billion.

The notes will not be registered under the Securities Act of 1933 and cannot be offered or sold in the United States except under exemptions from registration requirements. The offering will be made by initial purchasers only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons in offshore transactions under Regulation S.

Hilton Worldwide Holdings operates in the hospitality industry with a portfolio of hotel brands across various market segments. The company trades on the New York Stock Exchange under the ticker HLT.

This debt refinancing move comes as many companies are adjusting their capital structures amid the current interest rate environment.

The notes offering is subject to market and other conditions, and the company has not provided details on the expected interest rate or other specific terms of the notes.

In other recent news, Hilton Worldwide Holdings Inc. reported its Q1 2025 earnings, exceeding expectations with an adjusted EPS of $1.72 compared to the forecast of $1.62. However, the company’s revenue fell slightly short at $2.7 billion against the anticipated $2.73 billion. Despite this revenue shortfall, Hilton opened 186 hotels in the first quarter, marking a 20% increase year-over-year, and maintained a strong development pipeline with over 503,000 rooms. In the same period, Raymond James adjusted its price target for Hilton to $275 from $290, following the company’s earnings report that surpassed expectations for EBITDA and EPS but highlighted a downturn in full-year RevPAR projections.

Additionally, Jefferies analysts upgraded Hilton’s stock rating from Hold to Buy, increasing the price target to $296, citing confidence in the company’s business model amid economic uncertainties. JPMorgan also initiated coverage on Hilton with an overweight rating and a price target of $282, emphasizing Hilton’s high-single-digit EBITDA growth potential. These developments reflect analysts’ optimism about Hilton’s ability to maintain performance despite broader market challenges, with premium valuation multiples noted by both Jefferies and JPMorgan.

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