Hilton Worldwide Introduces Extended-Stay Brand for Business Travelers
May 24, 2023
Trending News 🌥️
Hilton Worldwide ($NYSE:HLT) has recently unveiled a new extended-stay brand designed with the needs of business travelers in mind. This addition to its portfolio of hotels and resorts is sure to be a hit with corporate travelers, who are constantly searching for accommodations that are comfortable, functional and affordable. The new brand, called Extended Stay Hotels by Hilton, offers budget-friendly accommodations and amenities tailored to the needs of today’s traveler.
The company also owns a portfolio of vacation ownership resorts and timeshare properties. Hilton Worldwide is publicly traded on the New York Stock Exchange under the ticker symbol HLT.
Stock Price
The brand, which is designed to meet the needs of those who stay in hotels longer than a traditional overnight, aims to reduce stress and fatigue associated with extended travel. The news comes on the same day that HILTON WORLDWIDE stock opened at $142.0 and closed at $137.7, down by 4.1% from its previous closing price of 143.6. Despite the drop in stock prices, the company hopes that their new brand will be successful in capturing the business traveller market. Home2Suites is designed to provide the same amenities as traditional hotel stays such as kitchens, lounge areas, and fitness centers, but with added convenience and comfort.
Through this new brand, HILTON WORLDWIDE seeks to offer customers a unique and more personalised experience during their extended stays. The company also hopes to benefit from the growing trend of business travellers, who have been among the most affected by the recent global pandemic. HILTON WORLDWIDE plans to use Home2Suites to capitalise on this growing market, giving them an edge over other competitors in the hospitality industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hilton Worldwide. More…
| Total Revenues | Net Income | Net Margin |
| 9.35k | 1.25k | 13.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hilton Worldwide. More…
| Operations | Investing | Financing |
| 1.82k | -182 | -2.15k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hilton Worldwide. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.21k | 16.62k | -5.35 |
Key Ratios Snapshot
Some of the financial key ratios for Hilton Worldwide are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.6% | 15.5% | 23.4% |
| FCF Margin | ROE | ROA |
| 17.8% | -108.3% | 9.0% |
Analysis
At GoodWhale we conducted an analysis of HILTON WORLDWIDE‘s wellbeing and the results were quite interesting. According to our Star Chart, HILTON WORLDWIDE is strong in growth, medium in profitability and weak in asset and dividend. Based on these findings, we classified HILTON WORLDWIDE as a ‘cheetah’, meaning that they have achieved high revenue or earnings growth but are considered less stable due to lower profitability. For this reason, HILTON WORLDWIDE may be attractive to investors looking for a more dynamic, fast-paced investment. The good news is that despite the lower profitability, HILTON WORLDWIDE still has a high health score of 8/10. This means that the company is likely to be able to ride out any crisis without the risk of bankruptcy. Consequently, investors with an appetite for risks may be particularly interested in investing in HILTON WORLDWIDE. More…
Peers
Hilton Worldwide Holdings Inc. is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. The company operates in more than 90 countries and has more than 4,800 properties. Hilton Worldwide is the largest hotel company in the world, with more than 2,800 hotels and resorts in more than 90 countries. The company’s brands include Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio Collection by Hilton, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton by Hilton, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, Home2 Suites by Hilton, and Tru by Hilton.
Choice Hotels International Inc. is a hospitality company that franchises hotels and resorts. The company operates in more than 35 countries and has more than 6,800 properties. Choice Hotels’ brands include Comfort Inn, Comfort Suites, Quality Inn, Sleep Inn, Clarion, Cambria hotels & suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, and Rodeway Inn.
Wyndham Hotels & Resorts Inc. is a hospitality company that franchises hotels and resorts. The company operates in more than 80 countries and has more than 9,000 properties. Wyndham’s brands include Wyndham Hotels and Resorts, Wyndham Grand, Wyndham Garden, Wyndham Rewards, Dolce Hotels and Resorts, Esplendor Boutique Hotels, TRYP by Wyndham, Wingate by Wyndham, Hawthorn Suites by Wyndham, microtel by Wyndham, Ramada Worldwide, Days Inn by Wyndham, Super 8 by Wyndham, Howard Johnson, Travelodge by Wyndham, Knights Inn by Wyndham, Planet Hollywood Hotels, and Baymont Inn & Suites.
Marriott International Inc. is a hospitality company that franchises hotels and resorts. The company operates in more than 70 countries and has more than 5,700 properties. Marriott’s brands include Marriott Hotels, Sheraton Hotels and Resorts, Westin Hotels and Resorts, Le Méridien Hotels and Resorts, Renaissance Hotels, Autograph Collection Hotels, Tribute Portfolio Hotels, Design Hotels, Courtyard by Marriott, Fairfield Inn & Suites by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott, TownePlace Suites by Marriott, Marriott Executive Apartments, Marriott Vacation Club International, and The Ritz-Carlton Hotel Company.
– Choice Hotels International Inc ($NYSE:CHH)
Choice Hotels International, Inc. is a hospitality franchisor company based in the United States. The company owns several hotel brands, including Comfort Inn, Cambria Hotels, Quality Inn, Sleep Inn, Clarion, MainStay Suites, Econo Lodge, Rodeway Inn, and Ascend Hotel Collection. The company also has a vacation rental division, which operates under the Vacation Rentals by Choice Hotels brand. As of December 31, 2020, Choice Hotels International franchised 7,006 properties in 40 countries and territories worldwide.
The company has a market cap of $6.88 billion and a return on equity of 87.46%. Choice Hotels International is a leading franchisor of hotels in the United States. The company’s hotel brands are well-known and offer a variety of accommodations to meet the needs of business and leisure travelers. Choice Hotels International is a publicly traded company listed on the New York Stock Exchange.
– Wyndham Hotels & Resorts Inc ($NYSE:WH)
Wyndham Hotels & Resorts is one of the largest hotel companies in the world, offering a wide variety of accommodations and services under its 20 hotel brands. The company has over 8,000 properties in more than 80 countries and employs over 25,000 people. Wyndham’s market cap is $6.29 billion and its ROE is 30.65%. The company’s brands include Wyndham Grand, Wyndham, Ramada, Days Inn, Super 8, Howard Johnson, Travelodge, and Knights Inn.
– Marriott International Inc ($NASDAQ:MAR)
Marriott International Inc. is a leading hospitality company with more than 6,700 properties in 130 countries and territories. Founded in 1927, Marriott has a long history of providing outstanding service and accommodations to guests around the world. The company’s market cap is 48.68B as of 2022 and its ROE is 116.05%. Marriott is dedicated to providing an exceptional experience for every guest, every time.
Summary
Hilton Worldwide has recently launched a new extended-stay brand targeting business travelers. This move has not been well received by investors, with the company’s stock price dropping on the same day. Given the current competitive landscape in the hospitality industry, investors may want to carefully consider the potential future implications that this extended-stay offering has for Hilton Worldwide. It is unclear if the new product will be able to generate enough demand to sustain itself in the long-term.
Furthermore, investors should consider the potential costs associated with this new product and whether it will be able to create a positive return on investment. While it is too early to make any definitive conclusions, this move may signal that the company is looking to capitalize on a potentially lucrative segment of the hospitality market.
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