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Hilton (HLT) to Expand Presence in Egypt With 9 New Hotels
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Hilton Worldwide Holdings Inc. (HLT - Free Report) is reportedly planning to expand presence in Egypt. Per Reuters, Hilton’s regional head Mohab Ghali has said that the company is planning to open nine more hotels in the country by 2026. Following the inauguration of new hotels, the company’s rooms in the region will increase by 1,700 or by 28%.
At present, Hilton has 14 hotels in Egypt. The company will also introduce three new brands. It is likely to gain from this expansion as tourism accounts for 15% of Egypt’s gross domestic product. Although visitation in the region has declined sharply on account of the coronavirus pandemic, it is likely to pick up once vaccination is done.
Shares of the company have gained 34.9% in the past six months, compared with the industry’s growth of 34%.
Expansion to Drive Growth
In a bid to maintain its position as the fastest-growing global hospitality company, Hilton is focused on driving unit growth. In 2020, Hilton opened nearly 410 new hotels. It achieved net unit growth of 56,000 rooms, marking an improvement of 5.1% from the prior-year quarter. During the fourth quarter, the company witnessed year-over-year growth of 30% in its hotel openings courtesy of new development projects in China. It also achieved the 1,000,000th room milestone with the opening of its 300th hotel in China, 600th DoubleTree hotel and 900th Hilton Garden Inn.
Hilton’s broad geographic diversity reduces the effect of volatility in individual markets. More than half of the company’s pipeline is located outside the United States. More than 30% of the pipeline is located in the Asia Pacific region. Notably, the company continues to make great progress in its luxury development strategy, anticipating double-digit luxury growth over the next several years.
As of Dec 31, 2020, Hilton's development pipeline comprised nearly 2,570 hotels, with roughly 397,000 rooms across 116 countries and territories — including 31 countries and territories where it currently does not have any running hotels. Moreover, 233,000 rooms in the development pipeline were located outside the United States and 204,000 rooms were under construction.
Zacks Rank
Hilton, which shares space with Hyatt Hotels Corporation (H - Free Report) , Marriott International, Inc. (MAR - Free Report) and Wyndham Hotels & Resorts, Inc. (WH - Free Report) , has a Zacks Rank #4 (Sell).
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Hilton (HLT) to Expand Presence in Egypt With 9 New Hotels
Hilton Worldwide Holdings Inc. (HLT - Free Report) is reportedly planning to expand presence in Egypt. Per Reuters, Hilton’s regional head Mohab Ghali has said that the company is planning to open nine more hotels in the country by 2026. Following the inauguration of new hotels, the company’s rooms in the region will increase by 1,700 or by 28%.
At present, Hilton has 14 hotels in Egypt. The company will also introduce three new brands. It is likely to gain from this expansion as tourism accounts for 15% of Egypt’s gross domestic product. Although visitation in the region has declined sharply on account of the coronavirus pandemic, it is likely to pick up once vaccination is done.
Shares of the company have gained 34.9% in the past six months, compared with the industry’s growth of 34%.
Expansion to Drive Growth
In a bid to maintain its position as the fastest-growing global hospitality company, Hilton is focused on driving unit growth. In 2020, Hilton opened nearly 410 new hotels. It achieved net unit growth of 56,000 rooms, marking an improvement of 5.1% from the prior-year quarter. During the fourth quarter, the company witnessed year-over-year growth of 30% in its hotel openings courtesy of new development projects in China. It also achieved the 1,000,000th room milestone with the opening of its 300th hotel in China, 600th DoubleTree hotel and 900th Hilton Garden Inn.
Hilton’s broad geographic diversity reduces the effect of volatility in individual markets. More than half of the company’s pipeline is located outside the United States. More than 30% of the pipeline is located in the Asia Pacific region. Notably, the company continues to make great progress in its luxury development strategy, anticipating double-digit luxury growth over the next several years.
As of Dec 31, 2020, Hilton's development pipeline comprised nearly 2,570 hotels, with roughly 397,000 rooms across 116 countries and territories — including 31 countries and territories where it currently does not have any running hotels. Moreover, 233,000 rooms in the development pipeline were located outside the United States and 204,000 rooms were under construction.
Zacks Rank
Hilton, which shares space with Hyatt Hotels Corporation (H - Free Report) , Marriott International, Inc. (MAR - Free Report) and Wyndham Hotels & Resorts, Inc. (WH - Free Report) , has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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