Hilton Worldwide HoldingsHLT -2.26%85 Interest Coverage is 4.19 as of Mar. 2026, which is 9% above its 10-year median of 3.86. GuruFocus rates HLT with a GF Score™ of 85/100 and a GF Value™ of $290.91 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 609 Travel & Leisure companies, Hilton Worldwide Holdings ranks worse than 53.69% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Hilton Worldwide Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $678 Mil. Hilton Worldwide Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-162 Mil.
Hilton Worldwide Holdings's interest coverage for the quarter that ended in Mar. 2026 was 4.19.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hilton Worldwide Holdings's Interest Coverage or its related term are showing as below:
HLT'
s Interest Coverage Range Over the Past 10 Years
Min: 2.56 Med: 3.86 Max: 5.05
Current: 4.45
HLT's Interest Coverage is ranked worse than 53.69% of 609
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs HLT: 4.45
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Hilton Worldwide Holdings Interest Coverage Related Terms
Hilton Worldwide Holdings Interest Coverage Historical Data
* 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Lodging subindustry, Hilton Worldwide Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hilton Worldwide Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Hilton Worldwide Holdings (HLT) has a Interest Coverage of 4.19 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hilton Worldwide Holdings and its competitors. This is near median its historical median of 3.86. Over the past decade, Hilton Worldwide Holdings' Interest Coverage has ranged from 2.56 to 5.05. According to the industry distribution chart, Hilton Worldwide Holdings ranks #327 out of 609 companies in the Travel & Leisure industry, placing it in the top 53.7%.
Is Hilton Worldwide Holdings' Interest Coverage too high?
Hilton Worldwide Holdings' current Interest Coverage of 4.19 is near median its 10-year median of 3.86. Over the past 10 years, this metric has ranged from a low of 2.56 to a high of 5.05. The Travel & Leisure industry median Interest Coverage is 5.35. Hilton Worldwide Holdings' value of 4.19 is 21.7% below this industry median. Based on the distribution chart, Hilton Worldwide Holdings ranks #327 out of 609 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Hilton Worldwide Holdings has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hilton Worldwide Holdings' Interest Coverage compare to MAR and H?
According to the Travel & Leisure industry distribution chart, Hilton Worldwide Holdings ranks #327 out of 609 companies for Interest Coverage. This places Hilton Worldwide Holdings in the lower half of its industry. The industry median Interest Coverage is 5.35. Hilton Worldwide Holdings' value of 4.19 is 21.7% below this benchmark. Historically, Hilton Worldwide Holdings' own Interest Coverage has ranged from 2.56 to 5.05 over the past decade. While the company's 10-year median is 3.86 vs. the industry median of 5.35, Hilton Worldwide Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hilton Worldwide Holdings's current Interest Coverage of 4.19 is 21.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hilton Worldwide Holdings and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hilton Worldwide Holdings's current Interest Coverage is 4.19, which is near median its own 10-year median of 3.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hilton Worldwide Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hilton Worldwide Holdings (HLT) is currently considered Modestly Overvalued. The stock's GF Value™ is $290.91, compared to a current price of $332.86 — trading 14.4% above its estimated fair value. The current Interest Coverage is 4.19, which is near median its 10-year median of 3.86 and 21.7% below the Travel & Leisure industry median of 5.35. Hilton Worldwide Holdings' overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Hilton Worldwide Holdings (HLT), the current Interest Coverage is 4.19 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hilton Worldwide Holdings (HLT) Overvalued in 2026?
Based on GuruFocus' analysis, Hilton Worldwide Holdings stock appears to be overvalued.
The current stock price of $332.86 is trading 14.4% above its estimated GF Value™ of $290.91.
GuruFocus considers Hilton Worldwide Holdings to be Modestly Overvalued.
Key valuation signals for HLT:
Interest Coverage: 4.19 (near median its 10-year median of 3.86)
GF Value™: $290.91 vs. price of $332.86 (14.4% above fair value)
Industry Position: 21.7% below the Travel & Leisure median (#327 of 609)
No single metric tells the full story. See the HLT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hilton Worldwide Holdings operates 1.36 million rooms across its 27 brands, serving the premium economy through luxury segments. Hampton and Hilton are the two largest brands, representing 27% and 18%, respectively, of the company's total rooms, as of Dec. 31, 2025. Recent brands launched over the past few years include Home2, Curio, Canopy, Spark, Tru, Tempo, LivSmart, and Outset. Additionally, there is a partnership with Small Luxury Hotels of the World and acquisitions of NoMad and Graduate Hotels. Managed and franchised hotels represent the vast majority of adjusted EBITDA, predominantly from the Americas.
85GF Score
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