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Hilton Opens Hotel in Malaysia, Expands Garden Inn Brand
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Hilton Worldwide Holdings Inc. (HLT - Free Report) recently announced the opening of its luxury hotel named Hilton Garden Inn Puchong in Malaysia. The hotel marks the second Hilton Garden Inn property in Puchong. This 255-roomed hotel, offering Hilton’s signature services, is situated in the Parkson. M Square Mall and is in close proximity to LRT station.
The move underscores Hilton’s efforts to expand into international markets and strengthen its brand name. The company has made a name for itself in China, Latin America and Europe. Driven by an expanding global brand presence, shares of Hilton have gained 17.8% in the past year, outperforming the industry’s collective growth of 1.1%.
Expansion — A Major Growth Driver
The move is in line with Hilton’s efforts to expand its global footprint. So, in order to maintain its position as the fastest-growing global hospitality company, Hilton is continuing to drive unit growth. During second-quarter 2018, Hilton added 123 hotels to its portfolio with net unit growth of 15,800 rooms, up 18% year over year. In total, the company has 23,000 net rooms year to date, up 8% from the prior-year level and projects roughly 6.5% net unit growth for this year.
We also believe that the recent hotel addition will strengthen Hilton’s Garden Inn brand. Currently, the brand comprises nearly 790 properties in 38 countries and territories. Such aggressive expansion will drive Hilton’s system-wide comparable revenue per available room (RevPAR).
Efforts to Fortify Loyalty Program
The hotel is also part of the Hilton Honors, one of the largest loyalty programs in the hospitality industry. Hilton extensively focuses on expanding its loyalty program to drive occupancy and revenues. In 2017, the company added over 11 million members to the program. Also, in the second quarter of 2018, more than 3 million members were added to Hilton Honors. In fact, the loyalty program increased occupancy by 120 basis points in the second quarter to nearly 60%.
Caleres has an expected current-year earnings growth rate of 15.7%.
Glu Mobile has an expected current year earnings growth rate of 156.8%.
Carter’s reported better-than-expected earnings in the last four quarters, the average beat being 15.3%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
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Hilton Opens Hotel in Malaysia, Expands Garden Inn Brand
Hilton Worldwide Holdings Inc. (HLT - Free Report) recently announced the opening of its luxury hotel named Hilton Garden Inn Puchong in Malaysia. The hotel marks the second Hilton Garden Inn property in Puchong. This 255-roomed hotel, offering Hilton’s signature services, is situated in the Parkson. M Square Mall and is in close proximity to LRT station.
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The move underscores Hilton’s efforts to expand into international markets and strengthen its brand name. The company has made a name for itself in China, Latin America and Europe. Driven by an expanding global brand presence, shares of Hilton have gained 17.8% in the past year, outperforming the industry’s collective growth of 1.1%.
Expansion — A Major Growth Driver
The move is in line with Hilton’s efforts to expand its global footprint. So, in order to maintain its position as the fastest-growing global hospitality company, Hilton is continuing to drive unit growth. During second-quarter 2018, Hilton added 123 hotels to its portfolio with net unit growth of 15,800 rooms, up 18% year over year. In total, the company has 23,000 net rooms year to date, up 8% from the prior-year level and projects roughly 6.5% net unit growth for this year.
We also believe that the recent hotel addition will strengthen Hilton’s Garden Inn brand. Currently, the brand comprises nearly 790 properties in 38 countries and territories. Such aggressive expansion will drive Hilton’s system-wide comparable revenue per available room (RevPAR).
Efforts to Fortify Loyalty Program
The hotel is also part of the Hilton Honors, one of the largest loyalty programs in the hospitality industry. Hilton extensively focuses on expanding its loyalty program to drive occupancy and revenues. In 2017, the company added over 11 million members to the program. Also, in the second quarter of 2018, more than 3 million members were added to Hilton Honors. In fact, the loyalty program increased occupancy by 120 basis points in the second quarter to nearly 60%.
Zacks Rank & Stocks to Consider
Hilton carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer-Discretionary sector are Caleres, Inc. (CAL - Free Report) , Glu Mobile Inc. and Carter's, Inc. (CRI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Caleres has an expected current-year earnings growth rate of 15.7%.
Glu Mobile has an expected current year earnings growth rate of 156.8%.
Carter’s reported better-than-expected earnings in the last four quarters, the average beat being 15.3%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>