1919 2019 ANNUAL REPORT CREATING a Great Place to Work for All 2019 Our Most Dynamic Year Yet 6,100+ Properties in 119 Countries and Territories CURATING Money-Can’t-Buy Experiences 100th Million Member Welcomed CREATING a Better World to Travel FUELING Global Growth Properties Open and In the Pipeline Pipeline Supply 8,683 420,000 Team Members* *Corporate, owned, managed and franchised employees globally ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 CEO Message A message from Chris Christopher J. Nassetta, President & Chief Executive Officer We Are HILTON We Are HOSPITALITY Our Vision Our Values Hospitality We are passionate about delivering exceptional guest experiences. To fill the earth with the light and warmth of hospitality – by delivering exceptional experiences – every hotel, every guest, every time. Our Mission To be the most hospitable company in the world – by creating heartfelt experiences for guests, meaningful opportunities for Team Members, high value for owners and positive impact in our communities. Integrity We do the right thing, all the time. Leadership We are leaders in our industry and in our communities. Teamwork We are team players in everything we do. Ownership We are the owners of our actions and decisions. Now We operate with a sense of urgency and discipline. 3 Hilton 2019 Annual Report 1st Air-conditioned lobby Televisions in guest rooms 1st Innovation Innovation Guest-centric A Brand for every innovation is in our Guest, anywhere in DNA, and constant the world, for every connection to our travel need through guests keeps us endless innovation looking forward. 1st Airport hotel 1st Airport hotel Connected Room1st o m o r R u Y o Digital Key1st Redefining Loyalty Hilton’s guest loyalty program, Hilton Honors, is always looking for innovative ways to provide value, flexibility and personalization for its Members with the brands they love. In 2019, we added exciting new opportunities to earn and redeem Points including: Lyft First-of-its-kind partnership allowing Honors Members to earn and redeem Points when they ride with Lyft. Live Nation Renewed partnership with the world’s leading live entertainment company to offer Honors Members access to tickets and exclusive music experiences through HiltonHonors.com/Experiences. American Express Reintroduced the Hilton Honors American Express Surpass Card and rolled out generous limited-time welcome offers for new Card Members in the height of the summer travel season. With one of the Honors American Express co-branded credit cards, new Card Members receive instant Honors status and have the ability to earn Bonus Honors Points on eligible Points.* *Terms Apply A More Intelligent Way to Learn Teamwork and Ownership are at the heart of Hilton’s values, so it is important for corporate office Team Members new to the hospitality industry to experience hotel operations in a way that provides a thorough understanding of the complex and physical nature of the roles and responsibilities of on-property Team Members. Hilton’s Learning & Development team identified virtual reality as an effective way to create an immersion experience for new hires. Using VR goggles, Team Members can now move through different hotel departments, completing tasks including setting a room service tray and cleaning a guest room. 4,500 Team Members have used VR training as part of their onboarding and continued learning. 5 InnovationHilton 2019 Annual Report Let’s Get Together at Signia by Hilton is setting out to transform the meetings and events industry by offering travelers who value sophisticated design, inspiring meeting spaces, elevated food and beverage offerings and seamless technology integration a new place to come together. Developed based on feedback from meeting professionals, guests, owners and developers, Signia by Hilton delivers a premier experience from check-in to check-out. Take a tour of this game-changing brand here. Customized Comforts of Home Connected Room allows Hilton guests to control and personalize their stay from the palm of their hand, including television programming, lighting, temperature and more. iHeartRadio NETFLIX SHOWTIME At year end 2019, Hilton had more than 11,400 Connected Rooms across 76 hotels. 6 Out-of-This-World Food & Beverage At DoubleTree by Hilton, the simple gesture of offering a warm chocolate chip cookie at check-in has become synonymous with the brand’s commitment to providing guests with a welcoming and comfortable stay. In 2019, we brought this signature hospitality to new heights when we sent our famous cookies into orbit to become the first food ever baked in space. Astronauts aboard the International Space Station (ISS) used the first space oven, designed by Zero G Kitchen, to bake the cookies as part of a landmark microgravity experiment. The experiment took place over several days in December 2019, and makes Hilton the first hospitality company to participate in research aboard the ISS. On this historic occasion, DoubleTree partnered with Scholastic to engage 140,000 students around hospitality, STEM and space through learning modules and contests. Learn more about the experiment here. InnovationHilton 2019 Annual Report Opportunity $1 Billion+ Saved through Corporate Responsibility Management System Net Unit Growth +6.6% Value A Resilient Business Model That Delivers Industry-Leading Premiums $886 Million 2019 Full Year Net Income $2.3 Billion 2019 Full-Year Adjusted EBITDA Industry-leading 14% Global RevPAR Premium 387,000+ Rooms in Pipeline A Resilient, Fee-Based Business Top-Line Driven 90% Adj. EBITDA from fees(a) Capital Efficient Growth ~7% Net Unit Growth(a) ~50% pipeline under construction Meaningful Fee Growth +11% Management & Franchise Fees CAGR(b) $2,272M $814M 2009(c) 2019(a) (a) Based on year ended 12/31/19. For Adjusted EBITDA, excludes corporate and other. (b) Excludes amortization of contract acquisition costs recorded as contra-revenue. (c) Does not include the effect of the revenue recognition standard adopted on January 1, 2018. “As we reflect on our 100th year, we are proud of what we have accomplished and how we continue to position Hilton to drive long-term value for years to come. Kevin Jacobs, Chief Financial Officer Guided by Our Key Strategic Priorities Align Culture & Organization Win on Customer Experience Expand Global Footprint Maximize Performance Our performance-driven, purpose-led culture is united around a common vision, mission and values. The best-performing portfolio of brands in the business builds on commercial capabilities to maximize revenue and innovative digital technology to personalize guest experiences. 8 Hilton’s global presence continues to grow at a record pace, bringing our innovative brand offerings to new and existing markets. Capitalizing on strong industry fundamentals, our resilient, fee-driven business model executes against a consistent strategy with clear objectives: grow market share and free cash flow to maintain a strong balance sheet and accelerate capital return. ValueHilton 2019 Annual Report Growth Highlights 6,110 Total Properties 387,000+ Rooms in Pipeline 116,000+ Rooms Approved 4 Brands Achieved Milestone Openings 100th 300th 500th 2,500th Our Global Footprint Global Europe, Middle East and Africa 6,110 Total Properties 971,780 Total Rooms 387,000+ Rooms in Pipeline 550 Total Properties 122,019 Total Rooms 68,000+ Rooms in Pipeline The Americas Asia Pacific 5,208 Total Properties 755,648 Total Rooms 196,000+ Rooms in Pipeline 352 Total Properties 94,113 Total Rooms 122,000+ Rooms in Pipeline “In 2019, Hilton had its fifth consecutive record-breaking year of growth. By opening more than a hotel a day, we’re able to provide our guests exceptional experiences around the world. Ian Carter, President, Global Development, Architecture, Design & Construction 9 ValueHilton 2019 Annual Report Named a Great Place to Work for Women in 6 countries 54 Great Place to Work awards in 2019 #1 In the U.S. – Fortune and Great Place to Work Opportunity Building a Great Place to Work for All #1 For Parents in the U.S. – Fortune and Great Place to Work #2 Workplace in the World – Fortune and Great Place to Work Opportunity Capturing the Spirit of Hilton Hilton’s founder, Conrad Hilton, launched the world’s first global hospitality company to make the world a better place. Hilton hotels have been the setting for powerful cultural moments ever since. One such moment, John Lennon and Yoko Ono’s Bed-In for Peace, took place in Room 702 of the Hilton Amsterdam, beginning March 25, 1969. 50 years later, we created a new video series taking viewers on a journey inspired by the spirit of Room 702, personified by our incredible Team Members who bring that spirit to life today. Investing In Our Future Nick Li honors his older sister’s sacrifice by advocating for girls’ education in rural China. This year we exceeded our 2014 Open Doors pledge to positively impact 1 million young people by 2019. Watch his video here. Building a New Life Syrian refugee Ismaeil Dawod finds new opportunities in Germany through an apprenticeship program. Hilton has impacted nearly 11,000 refugees since 2015 through volunteering, in-kind donations, purchasing, training and employment. Helping Our Family Take Care of Theirs In a robust expansion of our family-friendly benefits in the U.S., Hilton increased parental leave by two weeks, providing birth mothers with an industry-leading 12 weeks of paid time off, and fathers and adoptive parents with four weeks of paid time off. Expecting and returning parents also have access to a new Parents Concierge benefit where expecting parents can access assistance while transitioning from, and back to, work. In 2019, Hilton launched a partnership with Milk Stork, which allows Team Members to easily ship or carry breast milk home to their babies while traveling for work. The benefits complement our existing benefits that make Hilton the #1 Best Place to Work for Parents. 11 Our values are the foundation of our award-winning culture. Our goal is simple – to be the best place to work for our Team Members so they can provide the best service to our guests. Matt Schuyler, Chief Human Resources Officer Hilton 2019 Annual Report Turning Dreams Into Reality Through Hilton’s Thrive Sabbatical program, we support Team Members in pursuing their dreams and being the positive change they want to see in the world. Selected Team Members are given four weeks of paid sabbatical time and $5,000 to either live a dream or give a dream. For the third year of the program, Team Members around the globe used their sabbaticals for adventures ranging from biking across Australia to raise money to educate underprivileged kids, to becoming certified in 2,000-year-old traditional dance, to a Team Member learning sign language in order to communicate with her son. Live a Dream or Give a Dream Mira 12 Creating Opportunities for Veterans We value the leadership, integrity and teamwork that veterans and their families bring to the hospitality industry. In 2019, Hilton achieved our Operation: Opportunity goal of hiring 30,000 veterans, military spouses and caregivers across hotels, corporate offices and work-from-home positions in the U.S. within five years. We further expanded our commitment by pledging to make 25,000 additional hires by 2025, while enhancing training and development opportunities and comprehensive benefits tailored for the veteran community. OpportunityHilton 2019 Annual Report 5,300+ properties Participating in Soap Recycling Program Procurement through nearly 3,500 Diverse Suppliers Impact Bringing the Hilton Effect Into Communities Around the World The Only Hospitality Company on Fortune’s Change the World List Nearly 1,430,000 Volunteer Hours since 2017 1 Million+ Young People Impacted Through Open Doors Pledge 1st major hotel brand to set science-based targets to reduce our carbon emissions Creating a Better World to Travel The Hilton Effect is the positive, world-altering impact that Hilton has on billions of lives and thousands of communities around the globe. As we look ahead to the next century of impact, Hilton launched the The Hilton Effect Foundation with an initial announcement of 15 Hilton Effect Grants to fund projects and nonprofit partners having a positive impact on the communities we serve. These inaugural grants will support programs that are creating opportunities for youth, aiding in disaster recovery and supporting our Travel with Purpose 2030 goals. Travel with Purpose Travel with Purpose is Hilton’s corporate responsibility strategy to drive responsible travel and tourism globally. We are committed to doubling our social impact investment and cutting our environmental footprint in half by 2030. We are proud to have been recognized as the global industry leader on the Dow Jones Sustainability Indices, and named to the global environmental impact nonprofit CDP’s 2019 “A-List” for our climate change leadership. From mitigating the harmful effects of climate change to driving inclusive growth, we are leveraging our global footprint to make our communities better for those who live, work and travel there. “ Katie Fallon, EVP, Global Communications & External Affairs Respecting Human Rights Hilton developed the hospitality industry’s first online training on Key Risks of Modern Slavery in Labor Sourcing and donated it to the International Tourism Partnership (ITP). The ITP made the training freely available to the industry and to the public this past year. In addition, we require all hotel- based employees to complete an annual training on identifying signs of trafficking to combat human trafficking, including for sexual exploitation. 14 ImpactHilton 2019 Annual Report Reducing Food Waste Global food insecurity remains endemic, yet approximately one-third of food is wasted and ends up in landfills worldwide. As part of Hilton’s Travel with Purpose 2030 Goal to cut our food waste in half, we expanded our food donation initiative to all 300 of our managed hotels in the U.S. and Canada – one of the largest hotel food donation programs to date. Each property will set a food waste diversion and donation goal for 2020, and partner with local organizations to feed the hungry in their communities. Hilton expects to donate nearly 100 tons of food over the next year – enough to feed more than 160,000 people – while also diverting millions of pounds of food waste from landfills. Addressing Single-Use Plastics Hilton is taking steps to reduce single-use plastics. In 2019 we enacted a global ban on plastic straws, cocktail picks and stir sticks, and we continued our transition from single-use bath toiletries to full-size dispensers. We remain focused on taking necessary steps to replace single-use plastic items with environmentally preferable alternatives, with a focus on reusable items wherever possible. 15 Travel with Purpose 2030 Goals Update PROGRESS TOWARD OUR 2030 GOALS Doubling Our Social Impact Investment Since 2017, we have: Cutting Our Environmental Footprint Since 2008, we have reduced: Donated $3.2M in Support of Disaster Relief Trained 121,000 Team Members in Anti-human Trafficking Volunteered 1,429,295 Hours in Our Communities Carbon Emissions -36% Energy -26% Water -22% Waste -44% ImpactHilton 2019 Annual Report Portfolio Our Portfolio With the best-performing portfolio in the business, Hilton’s award-winning brands serve guests with any lodging need anywhere in the world. 16 Hilton 2019 Annual Report Leaders OUR Leaders CHRISTOPHER J. NASSETTA President & Chief Executive Officer KRISTIN CAMPBELL General Counsel IAN R. CARTER President, Global Development, Architecture, Design & Construction KATIE B. FALLON Global Head of Corporate Affairs DANNY HUGHES President, Americas KEVIN JACOBS Chief Financial Officer MATTHEW W. SCHUYLER MATTHEW W. SCHUYLER Chief Human Chief Human Resources Officer Resources Officer CHRIS SILCOCK Chief Commercial Officer SIMON VINCENT President, Europe, Middle East & Africa ALAN WATTS President, Asia Pacific JONATHAN A. WITTER Chief Customer Officer 17 Hilton 2019 Annual Report Information Stockholder Information Stock Market Information Ticker Symbol: HLT Market Listed and Traded: NYSE Investor Relations 7930 Jones Branch Drive McLean, Virginia 22102 Corporate Office Hilton 7930 Jones Branch Drive McLean, Virginia 22102 +1 703 883 1000 www.hilton.com/corporate +1 703 883 5476 ir.hilton.com ir@hilton.com Independent Registered Public Accounting Firm Ernst & Young LLP 1775 Tysons Boulevard Tysons, Virginia 22102 +1 703 747 1000 ey.com Board of Directors Transfer Agent EQ Shareowner Services P.O. Box 64874 St. Paul, Minnesota 55164-0874 +1 800 468 9716 www.shareowneronline.com Annual Meeting of Stockholders June 5, 2020 http://www. virtualshareholdermeeting.com/ HLT2020 CHRISTOPHER J. NASSETTA President, Chief Executive Officer & MELANIE L. HEALEY Former Group President, JOHN G. SCHREIBER President of Centaur Capital Partners; Director, Hilton The Procter & Gamble Company Retired Partner & JONATHAN D. GRAY Chairman of the Board of Directors, RAYMOND E. MABUS, JR. United States Secretary of the Navy Hilton; President & Chief Operating 2009-2017; Former Governor of Officer, Blackstone Mississippi; Former U.S. Ambassador Co-Founder, Blackstone Real Estate Advisors ELIZABETH A. SMITH Former Chief Executive Officer, CHARLENE T. BEGLEY Former Senior Vice President & Chief Information Officer, General Electric; JUDITH A. MCHALE President & Chief Executive Officer, DOUGLAS M. STEENLAND Chairman of the Board of Directors, President & Chief Executive Officer Cane Investments; Former President American International Group to the Kingdom of Saudi Arabia Bloomin’ Brands of Home and Business Solutions, & Chief Executive Officer, Discovery General Electric Communications 18 Hilton 2019 Annual Report ir.hilton.com