Hilton Worldwide Poised for Success, But Room for Growth Is Limited

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Hilton Worldwide ($NYSE:HLT) is poised for success, but the potential for further growth is limited. The global hospitality company is widely expected to exceed its financial targets and report impressive growth figures for the coming year.

However, it is worth noting that the upside potential for Hilton Worldwide is relatively low compared to other companies in the industry. This includes well-known brands such as Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts and Hampton by Hilton. The company also boasts a strong portfolio of loyalty programs and partnerships, including its popular Hilton Honors scheme. Despite the impressive growth it has achieved so far, the potential for further expansion is limited due to the saturation of the hotel market and increasing competition from online booking sites.

Market Price

Hilton Worldwide is continuing to show signs of success with their stock prices rising. On Friday, HILTON WORLDWIDE stock opened at $167.7 and closed at $170.8, up by 2.0% from last closing price of 167.5. It is likely that any further increases in market share and profitability will be hard to come by. The company must find other outlets to grow and expand their scope of operations. This will likely mean diversifying into other markets and leveraging their existing operations to create new opportunities for revenue growth.

Additionally, they must also look to strengthen their customer base by providing superior service and value-added products and services. The company must focus on diversification and strengthening their existing customer base to ensure long term success. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Hilton Worldwide. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Hilton Worldwide. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Hilton Worldwide. More…

Key Ratios Snapshot

Some of the financial key ratios for Hilton Worldwide are shown below. More…

Analysis

GoodWhale has conducted a financial analysis of HILTON WORLDWIDE’s performance. Our Star Chart shows that its stock is strong in dividend, but weak in asset, with medium ratings for growth and profitability. Based on this, we classify HILTON WORLDWIDE as a “cheetah”, which means it has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. Given its high health score of 8/10 with regard to its cashflows and debt, HILTON WORLDWIDE is capable to safely ride out any crisis without the risk of bankruptcy. Therefore, investors who are looking for potential rapid growth may find this company attractive. However, it is important to understand that this company is less stable than those with higher profitability and asset scores, so investors should conduct their own research before investing. 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 is an attractive investment opportunity, with the potential for generating returns in the short to medium term. The company is well-positioned to benefit from a strong hospitality market and an increasing number of travelers. Its brand recognition, customer loyalty, and expansive network of properties give it an edge over its competitors.

However, while the potential for growth is evident, upside is limited due to a highly competitive industry and limited pricing power. Investors should pay close attention to the company’s financial performance, strategic partnerships, and capital investments. Overall, Hilton Worldwide is a promising stock with potential for gains in the short-term or mid-term.