• Home2 Suites by Hilton Miami Airport South Blue Lagoon   


Resumes Capital Return to Shareholders

Hilton;

Hilton Worldwide Holdings Inc. (NYSE: HLT) today reported its first quarter 2022 results. Highlights include:

  • Diluted EPS was $0.75 for the first quarter, and diluted EPS, adjusted for special items, was $0.71
  • Net income was $211 million for the first quarter
  • Adjusted EBITDA was $448 million for the first quarter
  • System-wide comparable RevPAR increased 80.5 percent, on a currency neutral basis, for the first quarter compared to the same period in 2021
  • System-wide comparable RevPAR was down 17.0 percent, on a currency neutral basis, for the first quarter compared to the same period in 2019
  • Approved 22,200 new rooms for development during the first quarter, bringing Hilton's development pipeline to more than 410,000 rooms as of March 31, 2022
  • Added 13,200 rooms to Hilton's system in the first quarter, contributing to 7,800 net additional rooms in Hilton's system during the period, which represented 5.0 percent net unit growth from March 31, 2021
  • Resumed share repurchases in March 2022 and repurchased 907,000 shares of Hilton common stock for approximately $130 million in the first quarter and 1.8 million shares for approximately $265 million through April
  • Declared a $0.15 per share quarterly cash dividend in May 2022
  • Full year 2022 system-wide comparable RevPAR is expected to increase between 32.0 percent and 38.0 percent on a currency neutral basis compared to 2021; full year net income is projected to be between $1,001 million and $1,071 million; full year Adjusted EBITDA is projected to be between $2,250 million and $2,350 million
  • Full year 2022 capital return is projected to be between $1.4 billion and $1.8 billion

Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We are happy to report solid first quarter results, with all segments driving better than expected top line performance in March. Our results in the quarter, coupled with our confidence in continued recovery throughout the year, enabled us to begin returning capital to shareholders earlier than we had anticipated. In March, we resumed our share repurchase program and, in the second quarter, we declared a quarterly cash dividend. Our team members worked hard to effectively navigate the pandemic and position the Company for the future, and we are excited for the growth opportunities that lie ahead."

For the three months ended March 31, 2022, system-wide comparable RevPAR increased 80.5 percent compared to the same period in 2021, due to increases in both occupancy and ADR, and fee revenues increased 79 percent compared to the same period in 2021. For comparison to pre-pandemic results, system-wide comparable RevPAR for the three months ended March 31, 2022 was down 17.0 percent compared to the three months ended March 31, 2019.

For the three months ended March 31, 2022, diluted EPS was $0.75 and diluted EPS, adjusted for special items, was $0.71 compared to $(0.39) and $0.02, respectively, for the three months ended March 31, 2021. Net income (loss) and Adjusted EBITDA were $211 million and $448 million, respectively, for the three months ended March 31, 2022, compared to $(109) million and $198 million, respectively, for the three months ended March 31, 2021.

Development

In the first quarter of 2022, Hilton opened 76 new hotels contributing to 13,200 additional rooms and achieved net unit growth of 7,800 rooms. During the quarter, Hilton celebrated the opening of the 500th Homewood Suites in the U.S., as well as other notable openings including the Hilton Singapore Orchard, Hilton's largest hotel in the Asia Pacific region, and two new lifestyle hotels in destination cities under its Canopy by Hilton brand, the Canopy by Hilton Boston Downtown and the Canopy by Hilton New Orleans Downtown.

As of March 31, 2022, Hilton's development pipeline totaled 2,730 hotels representing more than 410,000 rooms throughout 113 countries and territories, including 27 countries and territories where Hilton does not currently have any existing hotels. Additionally, of the rooms in the development pipeline, nearly 200,000 of the rooms were under construction and over 245,000 of the rooms were located outside the U.S. Adding to Hilton's development pipeline during the quarter were two notable international deals under its Curio Collection by Hilton brand, the Royal Palm Galapagos in Ecuador and the Palacio Bellas Artes San Sebastian in Spain.

Balance Sheet and Liquidity

As of March 31, 2022, Hilton had $8.8 billion of long-term debt outstanding, excluding deferred financing costs and discount, with a weighted average interest rate of 4.00 percent. Excluding finance lease liabilities and other debt of Hilton's consolidated variable interest entities, Hilton had $8.6 billion of long-term debt outstanding with a weighted average interest rate of 3.97 percent and no scheduled maturities until 2025. No debt amounts were outstanding under Hilton's $1.75 billion senior secured revolving credit facility as of March 31, 2022, which had an available borrowing capacity of $1,690 million after considering $60 million of outstanding letters of credit. Total cash and cash equivalents were $1,510 million as of March 31, 2022, including $78 million of restricted cash and cash equivalents.

In March 2022, the Company resumed share repurchases, which, along with dividend payments, had been suspended to preserve cash during the pandemic. The Company repurchased 0.9 million shares of its common stock in March 2022 at a cost of approximately $130 million and an average price per share of $143.89, and, in 2022, through April 29th, the Company had repurchased 1.8 million shares at a cost of approximately $265 million and an average price per share of $148.29.

In May 2022, Hilton's board of directors authorized a quarterly cash dividend of $0.15 per share of common stock, which will be paid on or before June 24, 2022 to holders of record of its common stock as of the close of business on May 27, 2022.

Outlook

Share-based metrics in Hilton's outlook include actual share repurchases to date, but do not include the effect of potential share repurchases hereafter.

Full Year 2022

  • System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 32.0 percent and 38.0 percent compared to 2021, and to be down between 5.0 percent to 9.0 percent from 2019.
  • Diluted EPS, before special items, is projected to be between $3.56 and $3.81.
  • Diluted EPS, adjusted for special items, is projected to be between $3.77 and $4.02.
  • Net income is projected to be between $1,001 million and $1,071 million.
  • Adjusted EBITDA is projected to be between $2,250 million and $2,350 million.
  • Contract acquisition costs and capital expenditures, excluding amounts indirectly reimbursed by hotel owners, are expected to be between $250 million and $275 million.
  • Capital return is projected to be between $1.4 billion and $1.8 billion.
  • General and administrative expenses are projected to be between $410 million and $430 million.
  • Net unit growth is expected to be approximately 5.0 percent.

Second Quarter 2022

  • System-wide comparable RevPAR, on a currency neutral basis, is expected to increase between 45.0 percent and 50.0 percent compared to the second quarter of 2021, and to be down between 5.0 percent to 10.0 percent from the second quarter of 2019.
  • Diluted EPS, before special items, is projected to be between $0.89 and $0.94.
  • Diluted EPS, adjusted for special items, is projected to be between $0.98 and $1.03.
  • Net income is projected to be between $250 million and $264 million.
  • Adjusted EBITDA is projected to be between $590 million and $610 million.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 18 world-class brands comprising nearly 6,900 properties and nearly 1.1 million rooms, in 122 countries and territories.

HILTON WORLDWIDE HOLDINGS INC.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

Condensed Consolidated Statements of Operations

Comparable and Currency Neutral System-Wide Hotel Operating Statistics

Property Summary

Capital Expenditures and Contract Acquisition Costs

Reconciliations of Non-GAAP Financial Measures

Definitions

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions, except per share data)

Three Months Ended

March 31,

2022

2021

Revenues

Franchise and licensing fees

$

413

$

242

Base and other management fees

55

25

Incentive management fees

34

13

Owned and leased hotels

150

56

Other revenues

18

17

670

353

Other revenues from managed and franchised properties

1,051

521

Total revenues

1,721

874

Expenses

Owned and leased hotels

185

110

Depreciation and amortization

44

51

General and administrative

91

97

Other expenses

11

10

331

268

Other expenses from managed and franchised properties

1,021

585

Total expenses

1,352

853

Operating income

369

21

Interest expense

(90

)

(103

)

Gain (loss) on foreign currency transactions

(4

)

2

Loss on debt extinguishment

—

(69

)

Other non-operating income, net

16

5

Income (loss) before income taxes

291

(144

)

Income tax benefit (expense)

(80

)

35

Net income (loss)

211

(109

)

Net loss attributable to noncontrolling interests

1

1

Net income (loss) attributable to Hilton stockholders

$

212

$

(108

)

Weighted average shares outstanding:

Basic

279

278

Diluted

282

278

Earnings (loss) per share:

Basic

$

0.76

$

(0.39

)

Diluted

$

0.75

$

(0.39

)

HILTON WORLDWIDE HOLDINGS INC.

COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

BY REGION, BRAND AND SEGMENT

(unaudited)

Three Months Ended March 31,

Occupancy

ADR

RevPAR

2022

vs. 2021

2022

vs. 2021

2022

vs. 2021

By Region:

U.S.

61.8

%

14.1

%

pts.

$

144.32

36.4

%

$

89.12

76.8

%

Americas (excluding U.S.)

50.7

21.7

126.05

35.7

63.92

137.0

Europe

47.9

29.2

120.70

74.8

57.77

348.8

Middle East & Africa

66.2

26.0

159.07

34.6

105.28

121.4

Asia Pacific

42.5

(0.4

)

104.13

12.0

44.28

11.0

By Brand:

Waldorf Astoria Hotels & Resorts

47.7

%

23.6

%

pts.

$

599.50

7.5

%

$

286.03

113.0

%

Conrad Hotels & Resorts

45.8

15.6

229.69

33.4

105.21

102.1

Canopy by Hilton

53.4

23.1

186.89

34.7

99.89

137.2

Hilton Hotels & Resorts

49.6

20.1

169.18

38.2

83.85

132.9

Curio Collection by Hilton

52.6

19.0

214.50

27.7

112.83

100.1

DoubleTree by Hilton

52.9

17.5

127.02

32.9

67.24

98.5

Tapestry Collection by Hilton

53.8

18.1

145.89

28.3

78.48

93.2

Embassy Suites by Hilton

59.6

16.2

161.99

36.8

96.52

87.8

Hilton Garden Inn

59.0

13.8

124.60

34.8

73.56

75.8

Hampton by Hilton

60.5

10.8

118.90

30.3

71.98

58.4

Tru by Hilton

63.1

12.3

112.29

35.4

70.86

68.3

Homewood Suites by Hilton

73.6

9.5

135.97

28.6

100.09

47.8

Home2 Suites by Hilton

73.7

10.2

123.65

27.2

91.16

47.5

By Segment:

Management and franchise

58.4

%

14.4

%

pts.

$

138.77

35.0

%

$

81.08

79.2

%

Ownership(1)

38.0

25.0

176.04

31.1

66.82

283.5

System-wide

58.1

%

14.6

%

pts.

$

139.17

35.2

%

$

80.84

80.5

%
____________

(1)

Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.

HILTON WORLDWIDE HOLDINGS INC.

PROPERTY SUMMARY

As of March 31, 2022

Owned / Leased(1)

Managed

Franchised

Total

Properties

Rooms

Properties

Rooms

Properties

Rooms

Properties

Rooms

Waldorf Astoria Hotels & Resorts

U.S.

—

—

11

4,224

—

—

11

4,224

Americas (excluding U.S.)

—

—

2

261

—

—

2

261

Europe

2

463

4

898

—

—

6

1,361

Middle East & Africa

—

—

5

1,224

—

—

5

1,224

Asia Pacific

—

—

6

1,259

—

—

6

1,259

LXR Hotels & Resorts

U.S.

—

—

—

—

3

426

3

426

Americas (excluding U.S.)

—

—

—

—

1

76

1

76

Europe

—

—

2

383

—

—

2

383

Middle East & Africa

—

—

1

41

1

234

2

275

Asia Pacific

—

—

—

—

1

114

1

114

Conrad Hotels & Resorts

U.S.

—

—

5

1,922

1

1,496

6

3,418

Americas (excluding U.S.)

—

—

3

787

—

—

3

787

Europe

—

—

4

1,155

—

—

4

1,155

Middle East & Africa

1

614

3

1,569

—

—

4

2,183

Asia Pacific

1

164

22

7,074

1

659

24

7,897

Canopy by Hilton

U.S.

—

—

—

—

25

4,296

25

4,296

Americas (excluding U.S.)

—

—

2

272

—

—

2

272

Europe

—

—

1

123

4

917

5

1,040

Middle East & Africa

—

—

1

200

—

—

1

200

Asia Pacific

—

—

4

614

—

—

4

614

Signia by Hilton

U.S.

—

—

1

1,009

—

—

1

1,009

Hilton Hotels & Resorts

U.S.

—

—

57

43,212

188

59,118

245

102,330

Americas (excluding U.S.)

1

405

28

10,562

26

7,826

55

18,793

Europe

39

11,514

44

14,888

43

11,268

126

37,670

Middle East & Africa

5

1,992

36

12,555

3

1,565

44

16,112

Asia Pacific

5

2,999

112

39,294

8

3,247

125

45,540

Curio Collection by Hilton

U.S.

—

—

8

3,593

60

12,915

68

16,508

Americas (excluding U.S.)

—

—

2

99

12

1,750

14

1,849

Europe

—

—

4

360

21

2,894

25

3,254

Middle East & Africa

—

—

4

741

2

557

6

1,298

Asia Pacific

—

—

4

773

2

248

6

1,021

DoubleTree by Hilton

U.S.

—

—

32

10,605

341

77,510

373

88,115

Americas (excluding U.S.)

—

—

3

587

35

7,085

38

7,672

Europe

—

—

13

3,418

109

18,419

122

21,837

Middle East & Africa

—

—

18

4,710

5

568

23

5,278

Asia Pacific

—

—

77

20,478

5

1,395

82

21,873

HILTON WORLDWIDE HOLDINGS INC.

PROPERTY SUMMARY (continued)

As of March 31, 2022

Owned / Leased(1)

Managed

Franchised

Total

Properties

Rooms

Properties

Rooms

Properties

Rooms

Properties

Rooms

Tapestry Collection by Hilton

U.S.

—

—

—

—

63

7,545

63

7,545

Americas (excluding U.S.)

—

—

1

138

5

479

6

617

Europe

—

—

—

—

4

238

4

238

Asia Pacific

—

—

1

266

1

175

2

441

Embassy Suites by Hilton

U.S.

—

—

40

10,585

211

47,377

251

57,962

Americas (excluding U.S.)

—

—

2

354

6

1,649

8

2,003

Motto by Hilton

U.S.

—

—

—

—

3

871

3

871

Hilton Garden Inn

U.S.

—

—

4

425

730

100,857

734

101,282

Americas (excluding U.S.)

—

—

12

1,757

51

7,664

63

9,421

Europe

—

—

18

3,499

59

9,515

77

13,014

Middle East & Africa

—

—

17

3,555

3

474

20

4,029

Asia Pacific

—

—

49

10,771

1

177

50

10,948

Hampton by Hilton

U.S.

—

—

26

3,366

2,282

225,332

2,308

228,698

Americas (excluding U.S.)

—

—

13

1,644

109

13,305

122

14,949

Europe

—

—

16

2,697

101

15,769

117

18,466

Middle East & Africa

—

—

4

1,238

—

—

4

1,238

Asia Pacific

—

—

—

—

236

38,195

236

38,195

Tru by Hilton

U.S.

—

—

—

—

213

20,736

213

20,736

Americas (excluding U.S.)

—

—

—

—

2

179

2

179

Homewood Suites by Hilton

U.S.

—

—

10

1,172

493

56,282

503

57,454

Americas (excluding U.S.)

—

—

3

406

24

2,688

27

3,094

Home2 Suites by Hilton

U.S.

—

—

2

210

522

54,829

524

55,039

Americas (excluding U.S.)

—

—

—

—

7

753

7

753

Asia Pacific

—

—

—

—

5

783

5

783

Other

—

—

3

1,343

10

2,317

13

3,660

Total hotels

54

18,151

740

232,316

6,038

822,772

6,832

1,073,239

Hilton Grand Vacations

—

—

—

—

60

9,489

60

9,489

Total system

54

18,151

740

232,316

6,098

832,261

6,892

1,082,728
____________

(1)

Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.

HILTON WORLDWIDE HOLDINGS INC.

CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS

(unaudited, dollars in millions)

Three Months Ended

March 31,

Increase / (Decrease)

2022

2021

$

%

Capital expenditures for property and equipment(1)

$

4

$

3

1

33.3

Capitalized software costs(2)

10

8

2

25.0

Total capital expenditures

14

11

3

27.3

Contract acquisition costs

15

43

(28

)

(65.1

)

Total capital expenditures and contract acquisition costs

$

29

$

54

(25

)

(46.3

)
____________

(1)

Represents expenditures for hotels, corporate and other property and equipment, which include amounts indirectly reimbursed by hotel owners of less than $1 million for both the three months ended March 31, 2022 and 2021. Excludes expenditures for FF&E replacement reserves of $12 million and $4 million for the three months ended March 31, 2022 and 2021, respectively.

(2)

Includes $9 million and $7 million of expenditures that were indirectly reimbursed by hotel owners for the three months ended March 31, 2022 and 2021, respectively.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

NET INCOME (LOSS) AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS

(unaudited, in millions, except per share data)

Three Months Ended

March 31,

2022

2021

Net income (loss) attributable to Hilton stockholders, as reported

$

212

$

(108

)

Diluted EPS, as reported

$

0.75

$

(0.39

)

Special items:

Net other (revenues) expenses from managed and franchised properties

$

(30

)

$

64

Purchase accounting amortization(1)

12

12

FF&E replacement reserves

12

4

Loss on debt extinguishment(2)

—

69

Other adjustment items(3)

(10

)

3

Total special items before taxes

(16

)

152

Income tax benefit (expense) on special items

5

(38

)

Total special items after taxes

$

(11

)

$

114

Net income, adjusted for special items

$

201

$

6

Diluted EPS, adjusted for special items

$

0.71

$

0.02
____________

(1)

Amounts represent the amortization expenses related to finite-lived intangible assets that were recorded at fair value in 2007 when the Company became a wholly owned subsidiary of affiliates of Blackstone Inc. The majority of these assets will be fully amortized during 2023.

(2)

The amount relates to the redemption of senior unsecured notes and includes a redemption premium of $55 million and the accelerated recognition of unamortized deferred financing costs related to those senior unsecured notes of $14 million.

(3)

The amount for the three months ended March 31, 2022 primarily includes a gain related to Hilton's investments in unconsolidated affiliates, which was recognized in other non-operating income, net.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

(unaudited, dollars in millions)

Three Months Ended

March 31,

2022

2021

Net income (loss)

$

211

$

(109

)

Interest expense

90

103

Income tax expense (benefit)

80

(35

)

Depreciation and amortization expenses

44

51

EBITDA

425

10

Loss (gain) on foreign currency transactions

4

(2

)

Loss on debt extinguishment

—

69

FF&E replacement reserves

12

4

Share-based compensation expense

37

39

Amortization of contract acquisition costs

8

7

Net other expenses (revenues) from managed and franchised properties

(30

)

64

Other adjustments(1)

(8

)

7

Adjusted EBITDA

$

448

$

198
____________

(1)

Amount for the three months ended March 31, 2022 primarily includes a gain related to Hilton's investments in unconsolidated affiliates. Both periods include severance and other items.

Three Months Ended

March 31,

2022

2021

Total revenues, as reported

$

1,721

$

874

Add: amortization of contract acquisition costs

8

7

Less: other revenues from managed and franchised properties

(1,051

)

(521

)

Total revenues, as adjusted

$

678

$

360

Adjusted EBITDA

$

448

$

198

Adjusted EBITDA margin

66.1

%

55.0

%

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

NET DEBT AND NET DEBT TO ADJUSTED EBITDA RATIO

(unaudited, dollars in millions)

March 31,

December 31,

2022

2021

Long-term debt, including current maturities

$

8,765

$

8,766

Add: unamortized deferred financing costs and discount

84

87

Long-term debt, including current maturities and excluding unamortized deferred financing costs and discount

8,849

8,853

Less: cash and cash equivalents

(1,432

)

(1,427

)

Less: restricted cash and cash equivalents

(78

)

(85

)

Net debt

$

7,339

$

7,341

Three Months Ended

Year Ended

TTM Ended

March 31,

December 31,

March 31,

2022

2021

2021

2022

Net income (loss)

$

211

$

(109

)

$

407

$

727

Interest expense

90

103

397

384

Income tax expense (benefit)

80

(35

)

153

268

Depreciation and amortization expenses

44

51

188

181

EBITDA

425

10

1,145

1,560

Loss on sale of assets, net

—

—

7

7

Loss (gain) on foreign currency transactions

4

(2

)

7

13

Loss on debt extinguishment

—

69

69

—

FF&E replacement reserves

12

4

48

56

Share-based compensation expense

37

39

193

191

Amortization of contract acquisition costs

8

7

32

33

Net other expenses (revenues) from managed and franchised properties

(30

)

64

110

16

Other adjustments(1)

(8

)

7

18

3

Adjusted EBITDA

$

448

$

198

$

1,629

$

1,879

Net debt

$

7,339

Net debt to Adjusted EBITDA ratio

3.9
____________

(1)

Amounts for all periods include severance and other items. Amount for the three months ended March 31, 2022 also includes a gain related to Hilton's investments in unconsolidated affiliates and for the year ended December 31, 2021 also includes costs recognized for certain legal settlements.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

OUTLOOK: NET INCOME AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS

FORECASTED 2022

(unaudited, in millions, except per share data)

Three Months Ending

June 30, 2022

Low Case

High Case

Net income attributable to Hilton stockholders, before special items

$

250

$

264

Diluted EPS, before special items(1)

$

0.89

$

0.94

Special items(2):

Purchase accounting amortization

$

12

$

12

FF&E replacement reserves

20

20

Total special items before tax

32

32

Income tax expense on special items

(7

)

(7

)

Total special items after tax

$

25

$

25

Net income, adjusted for special items

$

275

$

289

Diluted EPS, adjusted for special items(1)

$

0.98

$

1.03

Year Ending

December 31, 2022

Low Case

High Case

Net income attributable to Hilton stockholders, before special items

$

1,001

$

1,071

Diluted EPS, before special items(1)

$

3.56

$

3.81

Special items(2):

Net other revenues from managed and franchised properties

$

(30

)

$

(30

)

Purchase accounting amortization

47

47

FF&E replacement reserves

65

65

Other adjustment items

(10

)

(9

)

Total special items before tax

72

73

Income tax expense on special items

(13

)

(13

)

Total special items after tax

$

59

$

60

Net income, adjusted for special items

$

1,060

$

1,131

Diluted EPS, adjusted for special items(1)

$

3.77

$

4.02
____________

(1)

Does not include the effect of potential share repurchases.

(2)

See "—Net Income (Loss) and Diluted EPS, Adjusted for Special Items" for details of these special items.

HILTON WORLDWIDE HOLDINGS INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

OUTLOOK: ADJUSTED EBITDA

FORECASTED 2022

(unaudited, in millions)

Three Months Ending

June 30, 2022

Low Case

High Case

Net income

$

250

  

$

264

  

Interest expense

108

108

Income tax expense

106

112

Depreciation and amortization expenses

41

41

EBITDA

505

525

FF&E replacement reserves

20

20

Share-based compensation expense

49

49

Amortization of contract acquisition costs

9

9

Other adjustments(1)

7

7

Adjusted EBITDA

$

590

$

610

Year Ending

December 31, 2022

Low Case

High Case

Net income

$

1,001

$

1,071

Interest expense

421

421

Income tax expense

415

444

Depreciation and amortization expenses

169

169

EBITDA

2,006

2,105

Loss on foreign currency transactions

4

4

FF&E replacement reserves

65

65

Share-based compensation expense

160

160

Amortization of contract acquisition costs

39

39

Net other revenues from managed and franchised properties

(30

)

(30

)

Other adjustments(1)

6

7

Adjusted EBITDA

$

2,250

$

2,350
____________

(1)

Includes adjustments for severance and other items.