Hilton Worldwide Holdings Inc.

Hilton Worldwide Holdings delivered an all-around beat in its latest result as travel demand has remained robust, continuing the pattern seen in the back half of last year. This resulted in both the company’s top and bottom line results closing the quarter above the high end of the management guidance. Fundamentals remain robust as the company moves forward, and the management expects secular tailwinds to continue to underpin growth. Despite ongoing macroeconomic uncertainty, Hilton’s management is confident that the power of its network effect, RevPAR premiums, and fee-based capital-light business model will continue to drive strong operating performance, unit growth, and meaningful cash flow, allowing it to return an increasing amount of capital to shareholders. The quarter’s leisure trends continued to be strong, with RevPAR outperforming the previous quarter’s performance. Recovery in the group also remains robust. Future booking demand remained strong, with full-year group position up 28% year on year. Hilton Garden Inn also continued to be a worldwide growth engine in the quarter, with 14 new signings in 6 countries and over 60 working deals in 22 countries. We give Hilton Worldwide Holdings a ‘Hold’ rating with a revised target price.