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Hilton Worldwide Holdings Inc HLT

Morningstar Rating
$214.74 +4.55 (2.16%)
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Company Report

Hilton's Brand Prowess Continues to Attract Travelers and Third-Party Owners

Hilton’s strong upper scale and luxury presence are strengthening its brand intangible asset, one of the sources of its wide moat. The firm is set to expand by several hundred hotels with its February 2024 Small Luxury Hotels partnership and its April 2024 acquisition of a majority interest in the Nomad brand. Hilton's emerging midscale brand (Spark by Hilton, launched in 2023); its extended-stay offering that it also launched in 2023 (LivSmart Studios); and the acquisition of Graduate Hotels, scheduled to close in second-quarter 2024, all support its pricing prowess. In fact, both Hilton's premium economy/midscale brand Spark and extended-stay concept LivSmart already have a few hundred partners in negotiations to join the company's portfolio. Long term, Spark has the potential to reach a few thousand units, offering an attractive unit growth catalyst for the company.

Price vs Fair Value

HLT is trading within a range we consider fairly valued.
Price
$210.32
Fair Value
$198.00
Uncertainty
Medium
1-Star Price
$187.50
5-Star Price
$655.70
Economic Moat
Ktwr
Capital Allocation
Pqfcdkty

Bulls Say, Bears Say

Bulls

Hilton’s current mid-single-digit share of hotel industry rooms is set to increase, as the company controls about 20% of the rooms under construction in the global hotel industry pipeline.

Bears

Recent brand launches from competing hotel operators and home and vacation rental platforms present a competitive threat, and the advancement of technology and its use by next-generation travelers increase the access and awareness of these properties.

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News

Trading Information

Previous Close Price
$210.19
Day Range
$209.20214.84
52-Week Range
$136.76215.80
Bid/Ask
$203.12 / $215.00
Market Cap
$53.69 Bil
Volume/Avg
1.2 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
32.31
Price/Sales
5.21
Dividend Yield (Trailing)
0.29%
Dividend Yield (Forward)
0.29%
Total Yield
5.14%

Company Profile

Hilton Worldwide Holdings operates nearly 1.2 million rooms across its more than 20 brands serving the premium economy scale through luxury segments. Hampton and Hilton are the two largest brands, representing 28% and 19%, respectively, of the company’s total rooms, as of Dec. 31, 2023. Recent brands launched over the last few years include Home2, Curio, Canopy, Spark, Tru, Tempo, and LivSmart, as well as a partnership with Small Luxury Hotels and acquisitions of Nomad and Graduate Hotels. Managed and franchised hotels represent the vast majority of adjusted EBITDA, predominantly from the Americas regions.
Sector
Consumer Cyclical
Industry
Lodging
Stock Style Box
Mid Growth
Total Number of Employees
178,000

Competitors

Valuation

Metric
HLT
IHG
CHH
Price/Earnings (Normalized)
32.3126.0319.38
Price/Book Value
845.02
Price/Sales
5.213.833.75
Price/Cash Flow
48.9621.7822.28
Price/Earnings
HLT
IHG
CHH

Financial Strength

Metric
HLT
IHG
CHH
Quick Ratio
0.750.900.32
Current Ratio
0.840.970.37
Interest Coverage
4.669.445.32
Quick Ratio
HLT
IHG
CHH

Profitability

Metric
HLT
IHG
CHH
Return on Assets (Normalized)
11.00%14.45%13.96%
Return on Equity (Normalized)
732.38%
Return on Invested Capital (Normalized)
25.33%52.08%22.46%
Return on Assets
HLT
IHG
CHH
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Lodging Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Marriott International Inc Class A
MAR
SnfttkgzLwmh$68.4 Bil
InterContinental Hotels Group PLC
ICHGF
Slx$16.9 Bil
InterContinental Hotels Group PLC ADR
IHG
XkmjlckpMycpq$16.9 Bil
Hyatt Hotels Corp Class A
H
LtptbqcLjpwqv$14.9 Bil
H World Group Ltd ADR
HTHT
Vyllbl$10.7 Bil
Accor SA ADR
ACCYY
Yghmwy$9.6 Bil
Accor SA
ACRFF
Mphsh$9.6 Bil
Wyndham Hotels & Resorts Inc Ordinary Shares
WH
HgplyvjldVvccqd$5.8 Bil
Choice Hotels International Inc
CHH
SbkshzfqMgghp$5.6 Bil

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