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View Annual Report 2017 ANNUAL REPORT WeHILTON Are HILTON WeHOSPITALITY Are 2017 ANNUAL REPORT ANNUAL ir.hilton.com Fellow Shareholders Nearly a century ago, Waiting to greet them are 380,0002 Hilton Team a young entrepreneur Members with a simple mission: To make each Stockholder Information named Conrad Hilton and every guest feel like part of our family, feel at purchased, almost on home, and to enrich their lives with unforgettable Stock Market Information Investor Relations Transfer Agent Ticker Symbol: HLT 7930 Jones Branch Drive EQ Shareowner Services impulse, the Mobley travel experiences. Market Listed and Traded: McLean, Virginia 22102 P.O. Box 64874 Hotel in Cisco, Texas. NYSE St. Paul, Minnesota 55164-0874 Soon the inventor +1 703 883 5476 of the modern Corporate Office ir.hilton.com +1 800 468 9716 hospitality industry Travel is an engine for Hilton [email protected] www.shareowneronline.com found himself setting 7930 Jones Branch Drive McLean, Virginia 22102 an even grander goal: understanding, connecting Independent Registered Annual Meeting Public Accounting Firm of Stockholders “To fill the earth with diverse peoples, ideas, +1 703 883 1000 Ernst & Young LLP May 10, 2018 the light and warmth www.hilton.com/corporate 1775 Tysons Boulevard McLean, Virginia 22102 of hospitality.” Almost one hundred years later our and cultures. Tysons, Virginia 221022 world continues to benefit from Conrad’s vision. +1 703 747 1000 ey.com I have said for some time that we have entered a Golden Age of Travel, and 2017 brought an important milestone with international tourism arrivals reaching 2017 was a pivotal year for Hilton. We successfully a staggering 1.3 billion1 — an all-time high. Trends completed the spin-offs of Park Hotels & Resorts indicate this record will continue to be broken as and Hilton Grand Vacations to create a new the middle class grows in places like China and India, simplified, resilient, fee-based business model. and the next generations of travelers seek unique We celebrated our 5,000th property milestone, adventures and genuine hospitality. launched our 14th brand — Tapestry Collection by Hilton, rolled out new technologies, and returned This golden age is a golden opportunity for our nearly $1.1 billion to shareholders, all of which industry. Travel and tourism can emerge as a powerful enhance the guest experience, strengthen our remedy to the world’s challenges. We are a principal loyalty base, and drive performance. contributor to global economic growth, providing 10 percent of global GDP. We are also the world’s Hilton continued to expand travel opportunities largest employer, hiring one out of every nine people.1 for millions of ambitious new travelers. We opened Travel is an engine for understanding, connecting nearly 400 new properties, a rate of more than diverse peoples, ideas, and cultures. We are in one hotel per day, and 51,600 net new rooms. the business of creating travel opportunities This marked our third consecutive year of record and environments that enhance those human net unit growth — 6.5 percent — allowing us to connections, creating a positive ripple effect welcome guests in 105 countries and territories. through communities all over the world. With a pipeline of nearly 2,300 properties and 345,000 rooms, we continue to lead the industry This golden age is also a golden opportunity for in net unit growth. And our 21 percent share of Hilton. Our guests come from around the globe rooms under construction accounts for more than and arrive at our nearly 5,300 properties carrying four times our current market share, more than the excitement, joy, and stress of their days. any other hospitality company. 1 Source: WTTC https://www.wttc.org/-/media/files/reports/economic-impact-research/regions-2017/world2017.pdf 2 Team Members include employees at Hilton corporate offices and its owned and managed properties, and employees of franchisees who work © 2018 Hilton on-property at independently owned and operated franchise properties in the Hilton portfolio. Designed and produced by Corporate Reports Inc./Atlanta. www.cricommunications.com. We expanded our geographic reach as well. We now As always, our hospitality mission extends beyond have more than 200 properties in Asia Pacific, more our hotels and into our communities. Our Travel than 100 of which are in Greater China. Our growth with Purpose corporate responsibility strategy in Latin America continues at a rapid pace with guides how we use our footprint to empower more than 100 hotels in the region and more than communities and contribute lasting, positive change. 70 in the pipeline. And, through our Hilton Africa We consistently review and build on our robust Growth Initiative, we expect to add 100 properties commitments to youth opportunity, environmental to our Sub-Saharan African portfolio over the next stewardship, and community resiliency, and in 2017 five years. this approach earned Hilton a spot on the Dow Jones Sustainability Index for the first time. This year we To deliver exceptional experiences for every guest, reached a cumulative $1 billion in savings through every hotel, every time, we pursue technological our industry-leading sustainability practices. advances that create customizable experiences. Additionally, to date, we have dedicated more than We scaled our Digital Key technology to 350,000 $3 million to disaster relief efforts and $1 million to rooms at more than 2,500 properties worldwide. action grant projects that support our mission. To allow our guests to control their stay from the palm of their hand we introduced Connected Room, At Hilton, we have a century-long commitment providing guests the freedom to control lighting, to infuse the “light and warmth of hospitality” in temperature, and entertainment all from the Hilton the connections we make with the 160 million or Honors app. so guests we welcome with purpose every year. As we expand our hospitality to new countries in And we create unparalleled value for our guests 2018, we will strive to enable our guests to travel through our Hilton Honors loyalty program, which with purpose by giving them more opportunities continues to grow with 71 million members and to make meaningful connections with the people counting. In 2018, we are adding new benefits and and communities around them. introducing a suite of American Express co-branded credit cards — all of which empower members to On behalf of our entire team, thank you for your achieve their travel goals. continued partnership during this historically important time for our industry. We are Hilton. We are hospitality. Sincerely, Christopher J. Nassetta President & Chief Executive Officer 2017 ANNUAL REPORT | 1 HILTON At - A -Glance In 2017, Hilton achieved record-setting Our Team Members extended our spirit of growth, introduced our 14th brand, and hospitality to approximately 160 million guests unveiled industry-leading innovations, all worldwide, contributed to their communities while remaining purpose-driven in making through our Travel With Purpose initiatives, Hilton a Great Place to Work. and created space for inspiration, creativity, and meaningful connections. HILTON HONORS WELCOMED DEDICATED LOYALTY PROGRAM GUESTS 160 SUPPORT TO $3 GREW 71 WORLDWIDE million DISASTER RELIEF million+1 MEMBERSHIP TO million+ Digital Key scaled Introduced 14% to GLOBAL REVPAR 350,000 Connected Room PREMIUM rooms worldwide More than $1 billion cumulative LISTED ON savings from sustainability THE DOW JONES SUSTAINABILITY INDEX projects since 2009 FOR THE FIRST TIME EXPANDED To date, connected, prepared Operation: Opportunity Commitment or employed nearly 800,000 to hire 20,000 additional U.S. veterans, young people through our spouses and dependents by 2020 Open Doors Pledge Created 23,000 new hotel jobs Opened more than one hotel a day NAMED A TOP 10 BEST WORKPLACE LAUNCHED THRIVE@HILTON INITIATIVE BY GREAT PLACE TO WORK 1Amount to date 2 | HILTON Expanded global footprint to 105 countries & territories 105,000 rooms trading in Europe, Middle East and Africa Opened 100th hotel in Greater China Opened 100th hotel in Latin America Opened 200th hotel in Asia Pacific HIGHLIGHTS Opened 5,000th property Opened 399 properties Record net unit growth, approvals and global pipeline AMERICAS* EMEA* ASIA PACIFIC* SUPPLY SUPPLY SUPPLY 675,000 Rooms 105,000 Rooms 68,000 Rooms PIPELINE PIPELINE PIPELINE 181,000 Rooms 65,000 Rooms 99,000 Rooms UNDER UNDER UNDER CONSTRUCTION CONSTRUCTION CONSTRUCTION 66,000 Rooms 42,000 Rooms 66,000 Rooms *Does not include timeshare 2017 ANNUAL REPORT | 3 Executive Committee CHRISTOPHER NASSETTA* KATIE BEIRNE FALLON CHRIS SILCOCK* President & Chief Executive Global Head of Corporate Chief Commercial Officer Officer Affairs SIMON VINCENT JOE BERGER KEVIN JACOBS* President, Europe, Middle President, Americas Chief Financial Officer East & Africa KRISTIN CAMPBELL* ALAN WATTS JONATHAN WITTER* General Counsel President, Asia Pacific Chief Customer Officer IAN CARTER* MATTHEW SCHUYLER* President, Global Chief Human Resources Development, Architecture, Officer Design & Construction *Executive officer as defined under the Securities Exchange Act of 1934. Board of Directors CHRISTOPHER NASSETTA ELIZABETH SMITH MELANIE HEALEY President & Chief Executive Chairman of the Board of Former Group President, Officer Directors & Chief Executive The Procter & Gamble Company Officer, Bloomin’ Brands JONATHAN GRAY RAYMOND MABUS, JR. Chairman of the Board of DOUGLAS STEENLAND United States Secretary of Directors, Hilton, President Chairman
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