Hilton Worldwide HoldingsMEX:HLT 78 Operating Margin % is 23.08% as of Mar. 2026, which is 35% above its 10-year median of 17.12. GuruFocus rates MEX:HLT with a GF Score™ of 78/100 and a GF Value™ of MXN4,722.37 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 844 Travel & Leisure companies, Hilton Worldwide Holdings ranks better than 84.48% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Hilton Worldwide Holdings Operating Margin % Related Terms
Hilton Worldwide Holdings Operating Margin % 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.
MEX:HLT vs MAR, H, HTHT: Operating Margin % Comparison
For the Lodging subindustry, Hilton Worldwide Holdings's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hilton Worldwide Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Hilton Worldwide Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (MEX:HLT) has a Operating Margin % of 23.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hilton Worldwide Holdings and its competitors. This is 35% above median its historical median of 17.12. According to the industry distribution chart, Hilton Worldwide Holdings ranks #131 out of 844 companies in the Travel & Leisure industry, placing it in the top 15.5%.
Is Hilton Worldwide Holdings' Operating Margin % too high?
Hilton Worldwide Holdings' current Operating Margin % of 23.08% is 35% above median its 10-year median of 17.12. The Travel & Leisure industry median Operating Margin % is 8.14. Hilton Worldwide Holdings' value of 23.08% is 183.7% above this industry median. Based on the distribution chart, Hilton Worldwide Holdings ranks #131 out of 844 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Hilton Worldwide Holdings has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hilton Worldwide Holdings' Operating Margin % compare to MAR and H?
According to the Travel & Leisure industry distribution chart, Hilton Worldwide Holdings ranks #131 out of 844 companies for Operating Margin %. This places Hilton Worldwide Holdings in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.14. Hilton Worldwide Holdings' value of 23.08% is 183.7% above this benchmark. While the company's 10-year median is 17.12 vs. the industry median of 8.14, Hilton Worldwide Holdings has consistently been above 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 Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hilton Worldwide Holdings's current Operating Margin % of 23.08% is 183.7% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Hilton Worldwide Holdings and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hilton Worldwide Holdings's current Operating Margin % is 23.08%, which is 35% above median its own 10-year median of 17.12. 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 (MEX:HLT) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN4,722.37, compared to a current price of MXN5,978.00 — trading 26.6% above its estimated fair value. The current Operating Margin % is 23.08%, which is 35% above median its 10-year median of 17.12 and 183.7% above the Travel & Leisure industry median of 8.14. Hilton Worldwide Holdings' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Hilton Worldwide Holdings (MEX:HLT), the current Operating Margin % is 23.08% 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 (MEX:HLT) Overvalued in 2026?
Based on GuruFocus' analysis, Hilton Worldwide Holdings stock appears to be overvalued.
The current stock price of MXN5,978.00 is trading 26.6% above its estimated GF Value™ of MXN4,722.37.
GuruFocus considers Hilton Worldwide Holdings to be Modestly Overvalued.
Key valuation signals for MEX:HLT:
Operating Margin %: 23.08% (35% above median its 10-year median of 17.12)
GF Value™: MXN4,722.37 vs. price of MXN5,978.00 (26.6% above fair value)
Industry Position: 183.7% above the Travel & Leisure median (#131 of 844)
No single metric tells the full story. See the MEX: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.
78GF Score
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