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Hilton Worldwide Holdings Gross Margin %

: 33.57% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Hilton Worldwide Holdings's Gross Profit for the three months ended in Jun. 2022 was $752 Mil. Hilton Worldwide Holdings's Revenue for the three months ended in Jun. 2022 was $2,240 Mil. Therefore, Hilton Worldwide Holdings's Gross Margin % for the quarter that ended in Jun. 2022 was 33.57%.

Warning Sign:

Hilton Worldwide Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -3.3%.


The historical rank and industry rank for Hilton Worldwide Holdings's Gross Margin % or its related term are showing as below:

HLT' s Gross Margin % Range Over the Past 10 Years
Min: 13.54   Med: 25.24   Max: 31.35
Current: 31.35


During the past 12 years, the highest Gross Margin % of Hilton Worldwide Holdings was 31.35%. The lowest was 13.54%. And the median was 25.24%.

HLT's Gross Margin % is ranked worse than
60.31% of 776 companies
in the Travel & Leisure industry
Industry Median: 39.77 vs HLT: 31.35

Hilton Worldwide Holdings had a gross margin of 33.57% for the quarter that ended in Jun. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hilton Worldwide Holdings was -3.30% per year.


Hilton Worldwide Holdings Gross Margin % Historical Data

The historical data trend for Hilton Worldwide Holdings's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hilton Worldwide Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.14 25.28 25.76 13.54 28.59

Hilton Worldwide Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.37 34.59 26.91 29.92 33.57

Competitive Comparison

For the Lodging subindustry, Hilton Worldwide Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Hilton Worldwide Holdings Gross Margin % Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hilton Worldwide Holdings's Gross Margin % falls into.



Hilton Worldwide Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hilton Worldwide Holdings's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=1655 / 5788
=(Revenue - Cost of Goods Sold) / Revenue
=(5788 - 4133) / 5788
=28.59 %

Hilton Worldwide Holdings's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=752 / 2240
=(Revenue - Cost of Goods Sold) / Revenue
=(2240 - 1488) / 2240
=33.57 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Hilton Worldwide Holdings  (NYSE:HLT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Hilton Worldwide Holdings had a gross margin of 33.57% for the quarter that ended in Jun. 2022 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Hilton Worldwide Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Hilton Worldwide Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Hilton Worldwide Holdings Business Description

Hilton Worldwide Holdings logo
Traded in Other Exchanges
Address
7930 Jones Branch Drive, Suite 1100, McLean, VA, USA, 22102
Hilton Worldwide Holdings operates 1,074,791 rooms across its 18 brands addressing the midscale through luxury segments as of Dec. 31, 2021. Hampton and Hilton are the two largest brands by total room count at 28% and 21%, respectively, as of Dec. 31, 2021. Recent brands launched over the last few years include Home2, Curio, Canopy, Tru, and Tempo. Managed and franchised represent the vast majority of adjusted EBITDA, predominantly from the Americas regions.
Executives
Fuentes Laura officer: See Remarks 7930 JONES BRANCH DRIVE MCLEAN VA 22102
Carr Chris director 7930 JONES BRANCH DRIVE MCLEAN VA 22102
Rinck Martin officer: See Remarks 7930 JONES BRANCH DRIVE MCLEAN VA 22102
Zhang Ling director C/O HILTON WORLDWIDE HOLDINGS INC. 7930 JONES BRANCH DRIVE MCLEAN VA 22102
Mabus Raymond E director C/O DANA INCORPORATED 3939 TECHNOLOGY DRIVE MAUMEE OH 43537
Healey Melanie director VERIZON COMMUNICATIONS INC. 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Witter Jonathan W. officer: See Remarks 1680 CAPITAL ONE DRIVE MCLEAN VA 22102
Begley Charlene T director
Hna Tourism (hk) Group Co., Ltd. 10 percent owner THE CENTER, 99 QUEEN'S ROAD CENTRAL CENTRAL K3 999077
Hna Tourism Group Co., Ltd. 10 percent owner HNA BUILDING NO. 7 GUOXING ROAD HAIKOU F4 570203
Hna Hlt Holdco Ii Llc 10 percent owner THE CORPORATION TRUST COMPANY 1209 ORANGE STREET WILMINGTON DE 19801
Hna Group Co., Ltd. 10 percent owner HNA BUILDING NO. 7 GUOXING ROAD HAIKOU, HAINAN F4 570203
Hna Hlt Holdco Iii Ltd 10 percent owner THE CENTER 99 QUEEN?S ROAD CENTRAL CENTRAL K3 999077
Hna Hlt Holdco I Llc 10 percent owner THE CORPORATION TRUST COMPANY 1209 ORANGE STREET WILMINGTON DE 19801
Blackstone Real Estate Holdings International Ii-q L.p. 10 percent owner C/O THE BLACKSTONE GROUP L.P. 345 PARK AVENUE NEW YORK NY 10154

Hilton Worldwide Holdings Headlines

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