Hilton Worldwide Holdings Inc.

Good morning and welcome to the Hilton Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's prepared remarks, there will be a question and answer session. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Jill Slattery, Senior Vice President, Investor Relations and Corporate Development. You may begin.

Thank you, Chad. Welcome to Hilton's second quarter 2022 earnings call. Before we begin, we would like to remind you that our discussions this morning will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements, and forward-looking statements made today speak only to our expectations as of today. We undertake no obligation to update or revise these statements. For a discussion of some of the factors that could cause actual results to differ, please see the risk factor section of our most recently filed Form 10-K and first quarter 10-Q. In addition, we will refer to certain non-GAAP financial measures on this call. You can find reconciliations of non-GAAP to GAAP financial measures discussed in today's call, in our earnings press release, and on our website at ir.hilton.com. This morning, Chris Nassetta, our President and Chief Executive Officer, will provide an overview of the current operating environment and the company's outlook. Kevin Jacobs, our Chief Financial Officer and President Global Development, will then review our second quarter results and discuss expectations for the year. Following their remarks, we will be happy to take your questions. With that, I'm pleased to turn the call over to Chris.

Thank you, Jill. Good morning, everyone, and thanks for joining us today. As our second quarter results demonstrate, we have a lot to be proud of. System-wide REBPAR achieved 98% of 2019 peak levels with all major regions except for Asia Pacific exceeding 2019 REBPAR. We continued to execute on our strong development story, reaching 7,000 hotels globally, and grew our industry-leading REBPAR premiums, all while maintaining good cost discipline. Coupled with the resiliency of our asset light fee-based business model, these accomplishments enabled us to deliver EBITDA 10% higher than the second quarter of 2019, with margins of nearly 70% up more than 800 basis points above 2019 levels. As a result, we continued returning meaningful capital to shareholders after resuming our capital return program last quarter. Turning specifically to results, we reported rev par adjusted EBITDA and adjusted EPS above the height of our guidance for the second quarter. System-wide rev par increased 54% year-over-year and was just 2% below 2019 levels, improving each month throughout the quarter, with June rev par surpassing prior peaks. All segments improved quarter-over-quarter, led by business transient and group. Leisure transient trends remained robust, as consumer spending continued to shift from goods to services, particularly travel and entertainment. Weekend REBPAR was up approximately 14% compared to 2019, driven by robust rate gains. In June, weekend ADR was up 20% versus prior peaks. Business transient demand continued to improve throughout the quarter, driving weekday occupancy up six points from April to June. Weekday REVPAR was 95% of 2019 levels with ADR exceeding prior peaks. U.S. business transient REVPAR surpassed prior peak levels in June with demand improving across nearly all industries. On the group side, REVPAR in the quarter was roughly 85% of 2019 levels. Full-year group position improved meaningfully throughout the quarter with strong forward bookings across all location types and nearly all major categories. Group mix is beginning to normalize with the percentage of company meetings increasing. Bookings for company meetings strengthened each month of the quarter with tentative pipeline for the year up materially versus 2019 boosted by high teens rate increases. In the U.S., Total group position is nearly at prior peak levels for the third quarter and exceeds prior peaks for the fourth quarter. With continued improvement in these segments and positive momentum across all regions, we remain optimistic for continued recovery throughout the balance of the year. As a result, we are raising our expectations for the full year to reflect the quarter's strong results and better anticipated trends in the back half with REVPAR surpassing 2019 levels. For the full year, we expect to deliver adjusted EBITDA above 2019 and to generate the highest level of free cash flow in our history. We expect to return between $1.5 and $1.9 billion to shareholders in the form of buybacks and dividends or approximately 5% of our market cap at the midpoint. Turning to unit growth, we continue to drive a disproportionate share of global development with nearly one in every five rooms under construction around the world slated to join our system. Additionally, our development market share is more than three times larger than our existing share, meaningfully higher than our peers, given our industry-leading REVPAR premiums. This is reflected in the more than 14,000 rooms we opened in the quarter. We signed more than 23,000 rooms, bringing our development pipeline to a record 413,000 rooms. With nearly half of our pipeline under construction, we remain on track to deliver approximately 5% net unit growth for the year. According to STAR, our year-to-date net additions are higher than all major branded competitors. Our conversion openings totaled more than 3,400 rooms in the quarter, representing roughly 24% of total openings. One of the most notable conversion openings in the quarter was the Waldorf Astoria, Washington, D.C. Inspired by the legacy of the old post office building, the property brings Waldorf's iconic history, stunning design, and unforgettable experiences to our nation's capital. Our discipline development strategy continues to enhance our network effect, enabling us to serve more guests across more destinations for any stay occasion. During the second quarter, we celebrated the opening of our 2800th Hampton Hotel, 60,000 embassy rooms, and several key luxury announcements, including the openings of Conrad Properties in Nashville and Sardinia, and the signings of the Waldorf Astoria Sydney and Waldorf Astoria Kuala Lumpur. Earlier this month, we celebrated the highly anticipated opening of the Conrad Los Angeles. Anchored within the Grand LA, the spectacular 305-room hotel marks the brand's debut in California and makes LA the second U.S. city alongside Las Vegas to feature all three of our luxury brands. The openings of the Hilton Maldives Amangari Resort and Spa and the Hilton Tulum Riviera Maya and all-inclusive resort were two of the latest additions to our rapidly expanding portfolio of resort properties in prime beachfront destinations. With 400 unique hotels and resorts open and in the pipeline, our conversion-friendly brands Curio and Tapestry continue to provide an attractive value proposition for owners. By providing authentic and curated experiences and drawing inspiration from their local communities, These brands enable owners to retain their own unique identities while also benefiting from the power of our commercial engines. During the quarter, we opened the Royal Palm Galapagos, marking the first international hotel brand in the Galapagos Islands and making Ecuador the 30th country in Curio's growing portfolio. Tapestry opened its 10,000th room in the quarter, including the Hotel Marseille, New Haven, which is anticipated to be the first net zero hotel in the U.S., and one of less than a dozen LEED Platinum certified hotels in the country. All of these openings continue to expand the offerings available to our Hilton Honors members. In the quarter, Honors membership grew 17% to 139 million members and accounted for approximately 62% of occupancy. up 350 basis points year over year, and roughly in line with 2019. To address the evolving needs of guests who want to travel with their pets, we have expanded our partnership with Mars Pet Care to now include seven of our brands, including all our focus service and all sweets brands, as well as Canopy. Through this expanded partnerships, Guests will have access to virtual support from the Mars Pet Expert team and have more than 4,600 pet-friendly hotels to choose from. We continue to double down on the importance of the guest experience and their stay. Earlier this week, we launched our first-ever global platform to focus on what has been missing from hotel advertising, the stay. Hilton, for the stay, places the hotel front and center. It goes without saying that our team members continue to be at the heart of that stay experience. I'm extremely proud that earlier in the quarter, Hilton was inducted in Diversity, Inc.' 's Hall of Fame for our continued commitment to building an inclusive and welcoming environment. And now I'll turn the call over to Kevin for a few more details on the quarter and the expectations for the rest of the year.