Hilton Worldwide
Annual Report 2021

Plain-text annual report

2021 Annual Report Brighter Together Performance Page 4 2021 was a year of growth and resilience for Hilton. We opened more than one hotel per day, celebrated numerous brand milestones and saw first-time entries into new global markets, all while spreading the light and warmth of hospitality around the world. With more than 2,600 additional hotels in the pipeline, the future is bright. Culture Page 9 Our Team Members are at the heart of who we are and what we do. As we work together to create heartfelt, memorable experiences for our guests, we are also ensuring that Hilton is an inclusive place to build a rewarding career. Guest Experience Page 6 By combining innovative new offerings with Hilton’s reliable and friendly service, we’ve enhanced our guests’ experiences so they can focus on what really matters — creating new memories. A MESSAGE FROM CHRIS NASSETTA “It’s never been clearer that Hilton is an engine of opportunity and a beacon of hope for all our stakeholders. Our Team Members’ continued resilience and innovation in the face of a changing pandemic ensured that we remained focused on the future, energized by the belief that we shine brighter together.” KEVIN JACOBS Chief Financial Officer & President, Global Development CHRIS NASSETTA President & CEO A MESSAGE FROM KEVIN JACOBS “We’re proud of the financial flexibility we demonstrated through the pandemic and remain confident in our balance sheet management and ability to continue to be an engine of growth and opportunity for our owners, Team Members, shareholders and partners.” Performance As the hospitality industry moved toward recovery, Hilton’s proven growth strategy and strong network effect led to results that strengthened the company’s position for the future. ESG PERFORMANCE We continue to invest in solutions to reduce the environmental footprint of our hotels, allowing us to operate more sustainably and, in many cases, achieve significant cost savings. Since 2008, we reduced the environmental impact of our portfolio of hotels: *In 2021, reductions in our environmental impact remained outsized due to reduced occupancy related to the COVID-19 pandemic. However, we remain on track to continue to progress in line with our 2030 Goals. Read more about our ESG efforts in our 2021 ESG Report Carbon -49% Water -39% Energy -40% Waste -70% Continued to be one of the largest ISO- certified real estate portfolios globally Achieved $1B+ in energy savings since 2009 Included on both the World and North America Dow Jones Sustainability Indices for the fifth consecutive year Recognized with a SAM Gold Class Award by S&P Global OUR NETWORK EFFECT Hilton enjoys a network effect that delivers strong performance, including an industry-leading global RevPAR premium. Our award-winning brands and premium levels of service lead to more satisfied and loyal customers, who drive strong financial returns for our hotel owners and who in turn invest further in growing our brands. The reinforcing nature of these activities generates strong financial performance for Hilton. 4 PERFORMANCE GLOBAL GROWTH AND DEVELOPMENT With more than 6,800 properties and 1 million rooms in 122 countries and territories, Hilton is one of the world’s largest and most diversified hotel companies. The Americas • Launched our premier meetings and events focused brand, Signia by Hilton, with the conversion of the Hilton Orlando Bonnet Creek • Expanded Hilton’s all-inclusive and luxury portfolio with the signing of three new beachfront resorts: Hilton Vallarta Riviera All-Inclusive Resort, Hilton Tulum All-Inclusive Resort and Conrad Tulum • Opened the Canopy by Hilton São Paulo, the first Hilton lifestyle brand in South America • Returned to the Las Vegas Strip with the launch of the 3,500-room Resorts World Las Vegas, making the area’s first new resort in more than a decade Europe, Middle East & Africa Asia Pacific • Announced plans to bring the first Curio Collection by Hilton to the Kingdom of Saudi Arabia with the signing of the Almashreq Hotel Riyadh • Debuted the first LXR Hotels & Resorts property in the Seychelles with Mango House Seychelles • Expanded our footprint in France with six new hotels, including the debut of our Tapestry Collection by Hilton and Canopy by Hilton brands in Paris • Opened the first DoubleTree by Hilton in Germany — the DoubleTree by Hilton Frankfurt Niederrad • Expanded our presence in Indonesia with the opening of the DoubleTree by Hilton Surabaya • Debuted the first Hilton Garden Inn in South Korea, the Hilton Garden Inn Seoul Gangnam • Launched the first Home2 Suites in Asia Pacific with the opening of the Home2 Suites by Hilton Shenzhen Bao’an • Marked Hilton’s 400th hotel in China with opening of the Hilton Lanzhou City Center All data as of 12/31/21 5 Guest Experience As our guests returned to travel, we embraced new habits and rewarded our most loyal guests. Our reliable and friendly Team Members, state-of-the-art technological innovations and groundbreaking solutions ensured Hilton was able to quickly adapt in a dynamic environment. STAYING CONNECTED THROUGHOUT YOUR STAY Nearly half of travelers booking trips together prefer to have connecting rooms. As families and friends begin to reunite, reconnect and travel again, we anticipate that need will only grow stronger. That’s why we introduced Confirmed Connecting Rooms by Hilton, which allows guests to easily book and instantly confirm at least two connecting rooms. This concept was originally engineered by Hilton’s new urban lifestyle hotel brand, Motto by Hilton, and is now available at participating hotels within any of the 18 brands in our portfolio. GATHERING WITH CONFIDENCE AND PURPOSE As a trusted partner to meeting planners around the world, Hilton has developed a suite of solutions addressing the complex issues around organizing engaging, safe and socially responsible events. MEET WITH PURPOSE Our Meet With Purpose program incorporates practices such as food donations and the option to make meetings carbon-neutral, all which have a positive impact on our communities. HILTON EVENTREADY HYBRID SOLUTIONS As customers seek to add digital elements into their live events, they can reference Hilton EventReady Hybrid Solutions, which include flexible customer offers and a directory of Hilton’s hybrid-ready hotels. To further simplify the research and booking process, we teamed up with Groups360 to deploy a new functionality that allows customers to seamlessly book guest room blocks and small meetings directly on Hilton.com. 6 GUEST EXPERIENCE WELCOMING OUR FURRY FRIENDS The desire to travel and connect with others is core to the human experience, and an increasing number of travelers expect to bring their four-legged companions along for the journey. Hilton properties are ready to welcome pets thanks to a new collaboration with Mars Petcare, leveraging insights from the organization’s BETTER CITIES FOR PETS™ program which offers guests at our Homewood Suites by Hilton and Home2 Suites by Hilton properties in the U.S. and Canada access to Mars Petcare experts on call for questions about pet health and wellness. REWARDING OUR MOST LOYAL MEMBERS In the spirit of putting our guests at the center of all we do, we introduced several new offerings in 2021 for our Hilton Honors members: • For the second year in a row, global benefit extensions helped Hilton Honors members maintain or achieve elite status. • Digital Key Share allows more than one guest to have access to their room’s Digital Key — which turns the Hilton Honors app into a room key — a first for a major hospitality company. • Hilton Honors Gold and Diamond members are notified of their complimentary room upgrade prior to arrival. Members can choose their upgraded room directly when they check in via the Hilton Honors app. 7 GUEST EXPERIENCE STAYING SUSTAINABLY Through Travel with Purpose, our environmental, social and governance (ESG) strategy, we continued to launch programs that enable our guests to travel more sustainably. CHARGING SUPPORT A new website feature allows customers to search for the 1,400+ Hilton properties around the world that offer electric vehicle charging stations. PLASTICS REDUCTION Hilton’s Digital Key technology has reduced plastic waste from plastic key cards by 125 tons, and properties are transitioning to bulk toiletries by the end of 2023. INSPIRING OUR GUESTS The new Extending Our Stay docuseries educates guests on how they can have a positive social and environmental impact when they travel. 8 Culture Our founder, Conrad Hilton, believed that travel had the power to open minds and hearts and promote peace and understanding around the world. Now, over a century later, that dream lives on through the Team Members at our hotels and guides our decisions every day. Our strategy to be the most hospitable company in the world focuses on attracting, developing and retaining the best talent in the industry. AWARD-WINNING CULTURE We have been consistently recognized for our culture; awards for 2021 included: • #3 World’s Best Workplace • #3 Best Company to Work for in the U.S. • #1 Best Big Company to Work For • #1 Best Place to Work for Women in the U.S. • Received 100% on the Human Rights Campaign Corporate Equality Index • Named a Best Place to Work for LGBTQ Equality • #1 Top 50 Companies for Diversity • #6 Top 10 Military Friendly Company For a full list of our workplace awards and recognitions, please visit the Hilton Newsroom. 9 CULTURE STRENGTHENING OUR COMMITMENT TO INCLUSION At Hilton, we are diverse by nature and inclusive by choice. We focus on a “for all” culture where diverse ideas and backgrounds are welcomed and celebrated. We know that a great place to work creates a sense of belonging and acceptance, regardless of background, ethnicity, age, ability, gender or sexual orientation. Guided by our values, we strive to make Hilton one of the world’s most inclusive workplaces. Over the last decade and, in particular, the last year, we have been on an important journey to create equity and inclusion at every point in our Team Members’ experiences. As part of this journey, we announced new commitments to ensure our workforce truly represents the communities where we live and work, including gender parity globally at leadership levels, and 25% ethnic diversity at the U.S. corporate leadership level by 2027. Thrive at Hilton is our value proposition that enables all Team Members to grow and flourish in both their professional and personal lives. To make that happen, we offer an entire ecosystem of programs throughout their career with Hilton to ensure they have the tools they need to excel in their roles. Their total well-being — mind, body and spirit — is central to our growth and continued success. At Hilton, we know that when we take care of our Team Members, they thrive and, in turn, create meaningful experiences for our guests and each other. Some of our programs include: • Amazon Care — Aimed at increasing access to care, allowing for more timely treatment of acute conditions and better management of chronic conditions for eligible U.S. Team Members • Employee Assistance Program — Offers free and confidential services, such as counseling and resources to find services such as childcare, eldercare and legal advice • Thrive at Hilton — Our global initiative to grow and amplify our mental health support services We also have various programs to show our appreciation and celebrate our Team Members. By offering development and learning opportunities, Hilton is helping each Team Member utilize their unique talents and achieve their career goals. 10 OUR BRANDS 11 STOCKHOLDER INFORMATION Stock Market Information Ticker Symbol: HLT Market Listed and Traded: NYSE Corporate Office Contact Hilton 7930 Jones Branch Drive McLean, Virginia 22102 +1 703 883 1000 www.hilton.com/corporate Investor Relations Contact 7930 Jones Branch Drive McLean, Virginia 22102 +1 703 883 5476 ir.hilton.com ir@hilton.com Independent Registered Public Accounting Firm Contact Ernst & Young LLP 1775 Tysons Boulevard Tysons, Virginia 22102 +1 703 747 1000 ey.com Transfer Agent Contact EQ Shareowner Services P.O. Box 64874 St. Paul, Minnesota 55164- 0874 +1 800 468 9716 www.shareowneronline.com Annual Meeting of Stockholders May 20, 2022 BOARD OF DIRECTORS CHRISTOPHER J. NASSETTA President, Chief Executive Officer & Director, Hilton CHRIS CARR Chief Operating Officer, Sweetgreen JONATHAN D. GRAY Chairman of the Board of Directors, Hilton; President & Chief Operations Officer, Blackstone CHARLENE T. BEGLEY Former Senior Vice President & Chief Information Officer, General Electric; Former President & Chief Executive Officer of Home and Business Solutions, General Electric MELANIE L. HEALEY Former Group President, The Procter & Gamble Company RAYMOND E. MABUS, JR. United States Secretary of the Navy 2009-2017; Former Governor of Mississippi; Former U.S. Ambassador to the Kingdom of Saudi Arabia JUDITH A. MCHALE President & Chief Executive Officer, Cane Investments; Former President & Chief Executive Officer, Discovery Communications ELIZABETH A. SMITH Former Chief Executive Officer, Bloomin’ Brands; Chair of the Atlanta Federal Reserve Board DOUGLAS M. STEENLAND Former Chief Executive Officer, Northwest Airlines; Lead Independent Director, American International Group 12 ir.hilton.com 

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