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Hilton Worldwide HoldingsHLT +0.34%86 3-Year ROIIC % is 16.82 as of Dec. 2025, which is 116% above its 10-year median of 7.79. GuruFocus rates HLT with a GF Score™ of 86/100 and a GF Value™ of $292.88 (Fairly Valued). The stock has 4 warning signs investors should review. Among 794 Travel & Leisure companies, Hilton Worldwide Holdings ranks better than 68.26% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Hilton Worldwide Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 16.82%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Hilton Worldwide Holdings's 3-Year ROIIC % or its related term are showing as below:
HLT's 3-Year ROIIC % is ranked better than 68.26% of 794
companies
in the Travel & Leisure industry
Industry Median: 3.74
vs HLT: 16.82
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Hilton Worldwide Holdings 3-Year ROIIC % Related Terms
Hilton Worldwide Holdings 3-Year ROIIC % 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.
For the Lodging subindustry, Hilton Worldwide Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Hilton Worldwide Holdings's 3-Year ROIIC % falls into.
Hilton Worldwide Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1898.8343 (Dec. 2025) - 1517.9406 (Dec. 2022) )
/
( 17910 (Dec. 2025) - 15646 (Dec. 2022) )
=
380.8937
/
2264
=
16.82%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Hilton Worldwide Holdings (HLT) has a 3-Year ROIIC % of 16.82 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Hilton Worldwide Holdings and its competitors. This is 116% above median its historical median of 7.79. According to the industry distribution chart, Hilton Worldwide Holdings ranks #252 out of 794 companies in the Travel & Leisure industry, placing it in the top 31.7%.
Is Hilton Worldwide Holdings' 3-Year ROIIC % too high?
Hilton Worldwide Holdings' current 3-Year ROIIC % of 16.82 is 116% above median its 10-year median of 7.79. The Travel & Leisure industry median 3-Year ROIIC % is 3.74. Hilton Worldwide Holdings' value of 16.82 is 349.7% above this industry median. Based on the distribution chart, Hilton Worldwide Holdings ranks #252 out of 794 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Hilton Worldwide Holdings has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hilton Worldwide Holdings' 3-Year ROIIC % compare to MAR and H?
According to the Travel & Leisure industry distribution chart, Hilton Worldwide Holdings ranks #252 out of 794 companies for 3-Year ROIIC %. This puts Hilton Worldwide Holdings in the upper half of its industry. The industry median 3-Year ROIIC % is 3.74. Hilton Worldwide Holdings' value of 16.82 is 349.7% above this benchmark. While the company's 10-year median is 7.79 vs. the industry median of 3.74, 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 3-Year ROIIC % for a Travel & Leisure company?
The median 3-Year ROIIC % among Travel & Leisure companies is 3.74, based on 794 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hilton Worldwide Holdings's current 3-Year ROIIC % of 16.82 is 349.7% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Hilton Worldwide Holdings and its competitors. For the Travel & Leisure industry, the median 3-Year ROIIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hilton Worldwide Holdings's current 3-Year ROIIC % is 16.82, which is 116% above median its own 10-year median of 7.79. 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 Fairly Valued. The stock's GF Value™ is $292.88, compared to a current price of $322.41 — trading 10.1% above its estimated fair value. The current 3-Year ROIIC % is 16.82, which is 116% above median its 10-year median of 7.79 and 349.7% above the Travel & Leisure industry median of 3.74. Hilton Worldwide Holdings' overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Hilton Worldwide Holdings (HLT), the current 3-Year ROIIC % is 16.82 as of Dec. 2025. 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 $322.41 is trading 10.1% above its estimated GF Value™ of $292.88.
GuruFocus considers Hilton Worldwide Holdings to be Fairly Valued.
Key valuation signals for HLT:
3-Year ROIIC %: 16.82 (116% above median its 10-year median of 7.79)
GF Value™: $292.88 vs. price of $322.41 (10.1% above fair value)
Industry Position: 349.7% above the Travel & Leisure median (#252 of 794)
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.
86GF Score
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