2016 ANNUAL REPORT

Highlights

Conrad Seoul

Our Key

Strategic Priorities


ALIGN CULTURE & ORGANIZATION

STRENGTHEN
BRANDS &
COMMERCIAL
SERVICES PLATFORM


EXPAND GLOBAL FOOTPRINT


MAXIMIZE PERFORMANCE

our value Proposition

Align

Culture & Organization

  • Connected, prepared or employed more than
    150,000 young people this year
  • Continued to attract the best talent with unique benefits, including parental leave, adoption assistance and the Go Hilton Team Member Travel Program
  • Offered more than 2,500 learning resources via Hilton University resulting in 3.5 million courses completed

Hilton Has Been
Recognized as a

Great Place to Work

We Were

#1

In Three Countries:
Saudi Arabia, Turkey & China

World’s

25

Best Multinational
Workplaces

 

100

Best Workplaces
for Women

 

100

Best Workplaces for Millennials

Fortune

Most Admired
Companies
 

Newsweek

Top Green
Companies
in the U.S.

Forbes

The Just 100:
America’s Best
Corporate Citizens

Strengthen

Brands & Commercial Services Platform

The highest-rated travel app

  • Downloaded every 8 seconds
  • Enables more than 1 million digital check-ins per month
  • Allows guests to select a room and use their phone as a Digital Key at 1,000 hotels today

Helped to grow Hilton Honors
loyalty program by 9 million members
to approximately 60 million members

Digital Check-in

Room Selection

Digital Key

Strategically adding new brands: with nearly 400 deals signed or in progress, Tru by Hilton is the fastest-growing new brand in our company’s history. The first location is set to open in the second quarter of 2017.

Expand

Global Footprint

Industry-Leading
Organic Growth

Signed over 106,000 ROOMS, grew pipeline to a record nearly
310,000 ROOMS with
157,176 under construction.
Opened 354 PROPERTIES adding five new countries to our footprint.

Hilton Garden Inn Los Angeles Montebello

China

328 hotels open or in the
pipeline in Greater China, totaling nearly
96,000 rooms

Luxury & Lifestyle

Nearly 120 hotels
open or in the pipeline

Waldorf Astoria Dubai Palm Jumeirah

Maximize

Performance

We are a resilient, fee-driven business with a disciplined strategy that is focused on growing market share, organic unit growth and free cash flow per share, preserving our strong balance sheet and accelerating return of capital.

Year-Over-Year Growth

2015-2016

MANAGED AND FRANCHISED
Net Unit Growth (ROOMS)

6.6%

Rooms in Pipeline

16%

Rooms Under
Construction

17%

Top line 2016 – RevPar

1.8%

Adjusted EBITDA

+3% or  $2,975M

significant potential capital return through 2019

free cash flow

$2.6 - $2.8B

net debt issuance

$0.4 - $1.7B

$3.0 - $4.5B

quarterly dividends

15% - 20%

programmatic & opportunistic
share buybacks

80% - 85%

This report 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” “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 and management and franchise agreements, risks related to doing business with third-party hotel owners, 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 our Annual Report on Form 10-K for the year ended December 31, 2016, 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 report 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.