Item 2.02 Results of Operations and Financial Condition.
Preliminary Estimated Unaudited Operating Results as of and for the Year Ended
Our consolidated financial statements for the year ended
As of and for the Year Ended December 31, 2020 (dollars in millions) Balance Sheet Data: Cash, restricted cash and cash equivalents(1)(2) $ 3,263 Senior secured revolving credit facility(2) $ 1,690 Operational Data: Net unit growth(3) 5.1 % Year-over-year RevPAR decline(4)(5) (56.7) %
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(1)During the three months endedDecember 31, 2020 , in connection with the issuances of the 3.750% Senior Notes due 2029 and the 4.000% Senior Notes due 2031 and the repayments of the 4.250% Senior Notes due 2024 and 4.625% Senior Notes due 2025, we used$76 million of available cash for fees, redemption premiums and accrued interest for amounts due from the last interest payment date through the redemption date. (2)OnJanuary 13, 2021 , Hilton paid down$250 million of its outstanding senior secured revolving credit facility with available cash. We anticipate that we may obtain up to approximately$75 million in additional letters of credit to be issued under the senior secured revolving credit facility inJanuary 2021 . (3)Net unit growth is calculated as the net additional hotel rooms added to Hilton's management and franchise system during the year endedDecember 31, 2020 , as a percentage of the total number of hotel rooms in the management and franchise system as ofDecember 31, 2019 . (4)Revenue per available room ("RevPAR") is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. We consider RevPAR to be a meaningful indicator of our performance as it provides a metric correlated to two primary and key drivers of operations at a hotel or group of hotels: occupancy and average daily rate. RevPAR is also a useful indicator in measuring performance over comparable periods for comparable hotels. (5)Calculated as RevPAR for the year endedDecember 31, 2020 less RevPAR for the year endedDecember 31, 2019 , divided by RevPAR for the year endedDecember 31, 2019 . The RevPAR balances used in this calculation are on a comparable and currency neutral basis. As such, comparisons of RevPAR for the year endedDecember 31, 2020 and 2019 use the exchange rates for the year endedDecember 31, 2020 .
The novel coronavirus ("COVID-19") pandemic continued to have an adverse impact
on our results throughout the year ended
Item 7.01 Regulation FD Disclosure.
On
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to use the proceeds of the Offering together with available cash to redeem all of its outstanding 5.125% Senior Notes due 2026. A copy of the press release is attached as an exhibit to this report and is incorporated herein by reference.
The information in this Form 8-K under Items 2.02 and 7.01, including Exhibit 99.1 hereto, is being furnished pursuant Items 2.02 and 7.01 of Form 8-K, respectively, and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
This Form 8-K does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offering, solicitation or sale would be unlawful.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
This Form 8-K, including the exhibits hereto, may include forward-looking
statements within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act. These statements may include, but are not limited to,
statements related to the Company's expectations regarding the impact of the
COVID-19 pandemic on our business, our liquidity expectations and other
non-historical statements. In some cases, these forward-looking statements can
be identified by the use of words such as "outlook," "believes," "expects,"
"potential," "continues," "may," "will," "should," "could," "seeks," "projects,"
"predicts," "intends," "plans," "estimates," "anticipates" or the negative
version of these words or other comparable words. Such forward-looking
statements are subject to various risks and uncertainties including, among
others, risks inherent to the hospitality industry, macroeconomic factors beyond
the Company's control, risks related to the impact of the COVID-19 pandemic,
competition for hotel guests and management and franchise contracts, risks
related to doing business with third-party hotel owners, performance of the
Company's information technology systems, growth of reservation channels outside
of the Company's system, risks of doing business outside of the
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 99.1 P ress release of Hilton Worldwide Holdings Inc., dated January 19, 2021. 101 Interactive Data File - XBRL tags are embedded within the Inline XBRL document. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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