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Hilton's financial performance has been impressive, with the company's revenue reaching $14.9 billion in 2020.
Their hotel portfolio is vast, with over 18 brands across 122 countries.
Hilton's revenue per available room (RevPAR) increased by 4.6% in 2020, a significant growth compared to the previous year.
Their loyalty program, Hilton Honors, has over 140 million members worldwide.
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Financial Performance
Hilton Worldwide Holdings has seen significant revenue growth, increasing by 17.99% in 2023 to $4.41 billion.
The company's revenue is expected to continue growing, with estimates suggesting it will reach $12.045 billion in 2025, $13.097 billion in 2026, and $15.253 billion in 2028.
Hilton's earnings, however, took a hit in 2023, decreasing by 9.08% to $1.14 billion. This decline is a notable contrast to the company's revenue growth.
Here's a breakdown of Hilton's estimated financial performance for the next few years:
The estimated revenue growth is substantial, with a projected increase of 17.64% in 2025 and 14.65% in 2026.
Hilton's net profit is also expected to grow, reaching $1.801 billion in 2025, $1.980 billion in 2026, and $2.512 billion in 2028.
The company's cash flow from operations is also expected to increase, reaching $2.149 billion in 2025 and $2.399 billion in 2026.
Hilton's net debt is projected to increase to $11,200 in 2025 and $12,412 in 2026.
Hilton's capital expenditure is expected to increase to $170 in 2025 and $186 in 2026.
The number of analysts estimating Hilton's earnings has increased, with 22 analysts estimating earnings in the previous quarter, 14 in the current quarter, and 14 in the next quarter.
The average earnings estimate for Hilton has also increased, reaching $1.679 USD in the previous quarter, $1.662 USD in the current quarter, and $2.131 USD in the next quarter.
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Forecast and Estimates
According to 19 analysts, the average rating for HLT stock is "Buy", with a 12-month stock price forecast of $236.11, which is a decrease of -6.94% from the latest price.
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The analysts' consensus is clear: HLT stock is a good investment opportunity. Analysts' forecasts can be a valuable tool for investors, helping them make informed decisions about their portfolios.
The 12-month stock price forecast of $236.11 is based on the analysts' consensus, and it's a decrease of -6.94% from the latest price. This suggests that the analysts expect the stock price to decline slightly over the next year.
The analysts' forecasts are based on a range of factors, including revenue growth, earnings per share (EPS), and other key metrics. In the case of HLT, the analysts are expecting strong revenue growth, with an average estimate of $12,045 USD for 2025.
Here's a breakdown of the analysts' forecasts for HLT stock:
The analysts' forecasts are just one factor to consider when investing in HLT stock. It's always a good idea to do your own research and consider multiple perspectives before making a decision.
The analysts' consensus is that HLT stock is a good investment opportunity, with a strong growth outlook and a competitive advantage in the hospitality industry.
Expansion and Growth
Hilton is planning a significant expansion in India, aiming to quadruple its hotel room pipeline in the next five years. This move is driven by the growing demand for leisure travel in the region.
Hilton Worldwide has a strong track record of revenue growth, having increased year-over-year revenues for 14 quarters straight. Its most recent quarter saw revenues reach $2.9 billion.
The company's expansion plans in India are part of a broader strategy to close the gap with its rivals.
Expansion Plans in India Amid Leisure Boom
Hilton Worldwide plans to quadruple the number of hotel rooms in its India pipeline in the next five years.
This expansion is a response to the growing demand for leisure travel in India, which is driving the hotel industry's growth.
The hotel operator is seeking to close the gap with its rivals and capitalize on the boom in leisure travel.
Hotel Count Growth Slows Amid Price Pressure
Hilton's hotel count growth has slowed down in recent times. This is evident from their Q3 earnings report, where they missed revenue expectations.
The company's shares gained 57% over the past year but dropped 2% after Q3 earnings and disappointing guidance. This shows that investors were initially optimistic about Hilton's growth prospects.
Hilton's Q3 earnings did beat EPS estimates, but the revenue miss was a concern. This indicates that the company is facing price pressure in the market.
As a result, investors are taking a closer look at Hilton's growth prospects and adjusting their expectations accordingly. This is a common phenomenon in the hospitality industry where companies often face challenges in maintaining growth momentum.
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Stock Performance
Hilton Worldwide Holdings has seen a significant increase in revenue, reaching $4.41 billion in 2023, a 17.99% jump from the previous year.
The company's financial performance is also reflected in its earnings, which were $1.14 billion, a decrease of -9.08% compared to the previous year.
Hilton Worldwide Holdings has outperformed the S&P 500 over the past 5 trading days, with a relative strength of 2.51%.
Here's a snapshot of the company's performance compared to the S&P 500:
The consensus rating among analysts is a Hold, based on 7 Buy ratings, 15 Hold ratings, and 0 Sell ratings.
Financial Performance
Hilton Worldwide Holdings has seen a significant increase in revenue, with $4.41 billion in 2023, a 17.99% jump from the previous year's $3.74 billion.
Their earnings, however, took a hit, decreasing by 9.08% to $1.14 billion.
The company's financial performance is expected to continue growing, with projected revenue reaching $12,045 million by 2025.
Here's a breakdown of Hilton Worldwide Holdings' projected financial performance for the next few years:
Hilton Worldwide Holdings' financial performance is expected to continue growing, with projected revenue reaching $15.25 billion by 2028.
The company's management team, led by President and CEO Christopher J. Nassetta, is working to drive this growth through strategic initiatives and investments.
Hilton Worldwide Holdings' financial performance is closely tied to its ability to manage and franchise hotels, which is a key aspect of its business.
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Calendar
In the world of stock performance, it's essential to stay on top of key events and dates that can impact a company's stock price. Let's take a closer look at Hilton Worldwide's calendar.
Hilton Worldwide's dividend calendar is a great place to start. In 2023, the company paid a dividend of $0.60 per share, with a yield of 0.33%.
Here's a breakdown of Hilton Worldwide's dividend payments over the years:
Looking ahead, Hilton Worldwide's earnings reports are another important event to watch. The company's Q4 2024 earnings release is estimated to be $1.679 USD, and it's scheduled for February 6, 2025.
Management and Operations
Hilton Worldwide Holdings has a strong management team in place, led by President and CEO Christopher J. Nassetta.
The company's CFO and President of Global Development is Kevin J. Jacobs, who oversees the financial and development aspects of the business. He is supported by a team of experienced executives.
One notable member of the team is Danny Hughes, the Executive Vice President and President of Americas, who is responsible for the company's operations in the Americas region.
The company also has a number of independent directors on its board, including Elizabeth A. Smith, Charlene T. Begley, Melanie Liddle Healey, Judith A. McHale, Raymond E. Mabus, and Chris Carr.
Here is a list of the company's top executives:
The company's leadership team is rounded out by a number of other experienced executives, including Laura Fuentes, Chief Human Resources Officer and Executive VP, and Anne-Marie W. D’Angelo, Secretary, Executive VP and General Counsel.
Results and Reports
Hilton reported strong Q3 2024 results with diluted EPS of $1.38 and adjusted EPS of $1.92.
System-wide RevPAR increased 1.4% compared to Q3 2023. This is a significant improvement, and it shows that Hilton is doing well in the market.
Net income was $344 million, while Adjusted EBITDA reached $904 million. These numbers demonstrate Hilton's financial strength and stability.
Management and franchise fee revenues increased 8.3%, which is a notable growth. This suggests that Hilton's business model is effective and profitable.
The company returned $764 million to shareholders through dividends and share repurchases in Q3. This shows that Hilton is committed to rewarding its investors.
For full-year 2024, Hilton projects RevPAR growth of 2.0-2.5% and Adjusted EBITDA between $3,375-$3,405 million. This is a positive outlook for the company's future performance.
UNITE HERE has sent letters to over 80 Hilton franchise owners in university towns, urging them to reevaluate their partnership with Hilton. This is a potential concern for Hilton's franchise business.
The union warns that the competitive advantage of participating in the Hilton Honors program may be diminished due to new competition from nearby Graduate hotels. This is a valid concern, as the rise of new hotel brands can affect Hilton's market share.
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Frequently Asked Questions
Who is the largest shareholder of Hilton Hotels?
The largest shareholders of Hilton Hotels include major financial institutions such as Vanguard Group Inc, BlackRock, Inc., and State Street Corp. These prominent investors hold significant stakes in the company.
Is Hilton a good investment?
Hilton Worldwide Holdings Inc. stock has a mixed performance with a Value Grade of F and Growth Grade of B, suggesting it may not be suitable for all investors. Consider your individual goals and risk tolerance before making a decision.
Did Hilton stock split?
Yes, Hilton Worldwide stock (HLT) has undergone one stock split. Learn more about the details of the split and its impact on investors.
Can you buy stock in Hilton hotels?
Yes, you can buy Hilton Worldwide stock through a brokerage firm of your choice. To invest in Hilton hotels, simply open an account with a reputable brokerage firm and start buying shares.
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