Pershing Square Activist Presentation Deck
Hilton Worldwide ("HLT")
Hilton Hilton's unique asset-light model and unit growth opportunity
should allow it to sustainably grow earnings at a mid-teens rate
Strong business performance in 2019¹
9% Adjusted EBITDA growth, 13% growth in economic earnings per share¹
► 7% net unit growth
► 5% reduction of outstanding shares
Robust earnings growth in 2019 despite muted macro environment
validate the durability of Hilton's business model
► Despite realizing -1% RevPAR growth, HLT should grow earnings by 13% in 2019
► Embedded growth from unit pipeline and strong cost control should sustain free
cash flow growth even if RevPAR declines in a weak economy
► Substantial capital return provides downside protection
Despite meaningful share price appreciation since our investment, HLT continues to offer a
compelling return profile given high levels of durable earnings growth
(1) Based on the midpoint of management's guidance for Q4. Excludes Other Non-Operating Income and gain or loss on foreign currency transactions.
Source: Company filings
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