Hilton Worldwide Holdings Inc. (HLT) has announced a $1 billion issuance of senior notes due 2034 through its indirect subsidiary, Hilton Domestic Operating Company Inc. The new notes will be sold to qualified institutional buyers under a Rule 144A offering and are intended to redeem the company’s $500 million, 5.750 % senior notes due 2028, along with related fees and general corporate purposes.
The refinancing aligns with Hilton’s long‑term capital‑structure strategy. By replacing higher‑rate, short‑term debt with a longer‑term, lower‑rate instrument, the company extends its debt maturity profile by six years and reduces interest‑rate exposure. The move also frees liquidity that can be deployed toward its expansive development pipeline, which now exceeds 515,000 rooms, and supports ongoing share‑repurchase and dividend programs.
Hilton’s Q3 2025 financials provide a backdrop for the transaction. The company reported diluted earnings per share of $1.78, or $2.11 on an adjusted basis, and net income of $421 million, up from $344 million in Q3 2024. Adjusted EBITDA rose to $976 million from $904 million year‑over‑year, reflecting strong fee‑based revenue growth and disciplined cost management. These results demonstrate the firm’s capacity to service new debt while maintaining robust profitability.
CEO Christopher J. Nassetta said the refinancing “reinforces our confidence in the company’s financial strength and our ability to fund growth while maintaining a disciplined capital structure.” He added that the development pipeline and asset‑light model position Hilton to capture market share in a recovering travel environment, and that the new notes will provide a stable funding source for future expansion.
The issuance is expected to improve Hilton’s liquidity profile and may support a favorable credit rating outlook, although the company has not disclosed the coupon rate for the 2034 notes. The transaction underscores Hilton’s proactive approach to debt management and its commitment to sustaining long‑term shareholder value.
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