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Hilton (HLT) Remodels Hotel, Strengthens Presence in North Carolina

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Hilton Worldwide Holdings Inc. (HLT - Free Report) recently announced the opening of Hilton Charlotte Airport hotel in Charlotte, NC. The 28,300-square-feet property has been exorbitantly renovated, and is operated by Alpharetta, GA-based Atrium Hospitality.

Located at Coliseum Centre Drive in Charlotte, the 275-suite hotel comprises of upgraded features and functional amenities. It offers multiple guest suites, two executive floors, penthouse suite, privatized dining facilities (serving breakfast, lunch and dinner), social dinning place in open air, a fitness area, indoor pool, multi-function meeting and event spaces, and a boardroom.

With respect to the opening, Daniel Abernethy, president, Atrium Hospitality, stated, “In addition to a beautiful and inviting hotel property that emphasizes sustainable operations, our guests can expect warm hospitality and attentive service indicative of the Hilton brand and also benefit from Hilton’s award-winning loyalty program.”

Nonetheless, the company remains optimistic about welcoming back its guests as soon as travel resumes.

Signs of Recovery in Global Markets

With restrictions being lifted and more than 97% of its properties operating, Hilton’s business is likely to pick up on improved demand post the summer period. The company is also likely to benefit from gradual improvement in travel demand owing to accelerated vaccine distributions as well as ease in government restrictions. During the fourth-quarter 2020 conference call, the company stated its expectation of reopening all system-wide rooms by second-quarter 2021. Notably, rise in leisure demand, coupled with rebound in corporate transient and group businesses, is likely to benefit the company going forward.

Furthermore, Hilton has a huge scope in the international market. More than half of the company’s pipeline is located outside the United States. Notably, the company continues to make great progress in its luxury development strategy, anticipating double-digit luxury growth in the next several years.

Price Performance

Coming to price performance, shares of Hilton have gained 12.9% compared with the Zacks Hotels and Motels industry’s 8.1% rise. Notably, the company is mainly benefiting from aggressive expansion strategies and its industry-leading loyalty program, coupled with an asset-light business model. Moreover, it remains optimistic on the back of ramped-up vaccination drives and reopening strategies. Nonetheless, earnings estimates for 2021 have moved up over the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.

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Zacks Rank

Hilton— which shares space with Marriott International, Inc. (MAR - Free Report) , Extended Stay America, Inc. and Choice Hotels International, Inc. (CHH - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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