Hilton Worldwide Holdings (HLT) risk factors: FY2025 10-K

1. We are subject to the business, financial and operating risks inherent to the hospitality industry, any of which could reduce our revenues and limit opportunities for growth.
2. Macroeconomic conditions, geopolitical activity, public health concerns and other factors beyond our control can adversely affect and reduce demand for our products and services.reworded
3. Contraction in the global economy or low levels of economic growth could adversely affect our revenues and profitability, as well as limit or slow our future growth.

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1. Because we operate in a highly competitive industry, our revenues or profits could be harmed if we are unable to compete effectively.

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1. Competition for management and franchise contracts
2. Any deterioration in the quality or reputation of our brands could have an adverse effect on our reputation, business, financial condition or results of operations.
3. Our business is subject to risks related to doing business with third-party property owners that could adversely affect our reputation, operational results or prospects for growth.
4. Unless we maintain good relationships with third-party hotel owners and renew or enter into new management and franchise contracts, we may be unable to maintain or expand our presence and our business, financial condition and results of operations may suffer.
5. Our business is subject to real estate investment risks for third-party hotel owners that could adversely affect our operational results and our prospects for growth.
6. If our third-party hotel owners are unable to repay or refinance loans secured by properties, or to obtain financing adequate to fund current operations or growth plans, our revenues, profits and capital resources could be reduced and our business could be harmed.
7. If our third-party property owners fail to make investments necessary to maintain or improve their properties, guest preference for Hilton brands, Hilton's reputation and performance results could suffer.
8. Contractual and other disagreements with third-party property owners could make us liable to them or result in litigation costs or other expenses or termination of existing management or franchise contracts.
9. Some of our existing development pipeline may not be developed into new hotels, which could materially adversely affect our growth prospects.
10. New hotel brands or non-hotel branded concepts that we launch in the future may not be as successful as we anticipate, which could have a material adverse effect on our business, financial condition or results of operations.
11. The risks resulting from investments in leased real estate could increase our costs, reduce our profits and limit our ability to respond to market conditions.reworded
12. Failure to keep pace with developments in technology, including AI, could adversely affect our operations or competitive position.rewordedAI
13. Failures in, material damage to or interruptions in our information technology systems, software or websites, including as a result of cyber-attacks on our systems or systems operated by third parties that provide operational and technical services to us, costs associated with protecting the integrity and security of personal data and other sensitive information and difficulties in updating our existing software or developing or implementing new software could have a material adverse effect on our business or results of operations.Cybersecurity
14. Cyber-attacks could have a disruptive effect on our business.Cybersecurity
15. We are incorporating artificial intelligence technologies into our processes. These technologies may present business, compliance and reputational risks.AI
16. We are exposed to risks and costs associated with protecting the integrity and security of personal data and other sensitive information.
17. Because third parties provide us with a number of operational and technical services, third-party security incidents could expose us to liability, harm our reputation, damage our competitiveness and adversely affect our financial performance.
18. Delays in service from third-party service providers could expose us to liability, harm our reputation, damage our competitiveness and adversely affect our financial performance.
19. We have expanded and may continue to seek to expand through acquisitions of and investments in other businesses and properties, or through alliances and strategic partner arrangements, and we may also seek to divest some of our properties and other assets. These acquisition and disposition activities may be unsuccessful or divert management’s attention.
20. Failure to comply with marketing and advertising laws, including with regard to direct marketing, could result in fines or place restrictions on our business.
21. The growth of internet reservation channels could adversely affect our business and profitability.
22. Our reservation system is an important component of our business operations and a disruption to its functioning could have an adverse effect on our performance and results.
23. The cessation, reduction or taxation of program benefits of our Hilton Honors guest loyalty program could adversely affect the Hilton brands and guest loyalty.
24. Because we derive a portion of our revenues from operations outside the U.S., the risks of doing business internationally could lower our revenues, increase our costs, reduce our profits or disrupt our business.
25. Failure to comply with laws and regulations applicable to our international operations may increase costs, reduce profits, limit growth or subject us to broader liability.
26. Collective bargaining activity could disrupt our operations, increase our labor costs or interfere with the ability of our management to focus on executing our business strategies.
27. The loss of key senior management personnel or labor shortages could restrict our ability to grow our business or operate our properties or result in increased labor costs that could adversely affect our results of operations.
28. Any failure to protect our trademarks and other IP could reduce the value of the Hilton brands and harm our business.
29. Third-party claims that we infringe IP rights of others could subject us to damages and other costs and expenses.
30. Exchange rate fluctuations and foreign exchange hedging arrangements could result in significant foreign currency gains and losses that affect our business results.
31. If the insurance that we or our property owners carry does not sufficiently cover damage or other potential losses or liabilities to third parties involving properties that we manage, franchise or lease, our profits could be reduced.reworded
32. Climate change could adversely affect our business.
33. Our business is subject to evolving corporate governance and public disclosure regulations and expectations, including with respect to sustainability matters, that could increase costs or expose us to reputational and other risks.

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1. Governmental regulation may adversely affect our results and the operation of our properties.reworded
2. Changes in U.S. federal, state and local or foreign tax law, interpretations of existing tax law or adverse determinations by tax authorities, could increase our tax burden or otherwise adversely affect our financial condition or results of operations.
3. Foreign or U.S. environmental laws and regulations may cause us to incur substantial costs or subject us to potential liabilities.

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1. Our substantial indebtedness and other contractual obligations could adversely affect our financial condition, our ability to raise additional capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry and our ability to pay our debts, and could require us to divert our cash flows from operations to make required debt or interest payments.
2. Servicing our indebtedness will require a significant amount of cash. Our ability to generate sufficient cash depends on many factors, some of which are not within our control.
3. Certain of our debt agreements impose operating and financial restrictions on us and our subsidiaries, which may prevent us from capitalizing on business opportunities.
4. Despite our current level of indebtedness, we may be able to incur substantially more debt and enter into other transactions, which could further exacerbate the risks to our financial condition described above.

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1. Although we currently pay a quarterly cash dividend to holders of our common stock, we may change our dividend policy at any time.
2. Anti-takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that stockholders might consider favorable.

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