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Hilton Fuels Luxury Growth With New Brands and 500 Hotels Pipeline

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Key Takeaways

  • Hilton has reached 1,000 luxury and lifestyle hotels and plans more than 150 openings in 2025.
  • New brands like NoMad and Graduate by Hilton, plus the SLH partnership, fuel the expansion.
  • Hilton aims to open three luxury or lifestyle hotels weekly amid strong global brand momentum.

Hilton Worldwide Holdings Inc. (HLT - Free Report) recently celebrated a significant milestone with the opening of its 1,000th luxury and lifestyle hotel globally. The achievement comes amid a period of robust growth driven by a combination of organic expansion, strategic acquisitions and brand partnerships. Notable recent openings span key global markets, including Paris, Cape Town, Dallas, Osaka and Costa Rica.

The milestone underscores its strong push into high-margin luxury travel, anchored by brands such as Waldorf Astoria, Conrad, LXR Hotels & Resorts, Signia and Canopy by Hilton. With nearly 500 additional luxury and lifestyle hotels in the development pipeline, the company is on track to open more than 150 properties in this category in 2025.

Focus on Strategic Brand Initiatives

Among the standout initiatives fueling its luxury expansion is the recent introduction of new brands like NoMad and Graduate by Hilton, along with an exclusive partnership with Small Luxury Hotels of the World (“SLH”). So far in 2025, Hilton has added more than 100 future luxury and lifestyle hotels to its pipeline.

The NoMad brand has announced future openings in Singapore and Detroit, with more than 15 projects globally. NoMad Detroit, expected to open in 2027, will be housed in the historic Michigan Central Station as part of a revitalization project in partnership with Ford Motor Company.

Graduate by Hilton is also gaining momentum, with upcoming openings in U.S. college towns like Boulder, CO, and Syracuse, NY, and plans for international expansion.

Additionally, the SLH partnership continues to strengthen. With approximately 450 SLH properties now available to Hilton Honors members, the collaboration gives travelers access to highly curated boutique hotels across the globe, while also enabling loyalty members to earn and redeem points, and receive elite-tier benefits.

Strengthening HLT’s Global Presence

Hilton is aggressively expanding its luxury footprint worldwide. Upcoming launches include the much-anticipated Waldorf Astoria New York, Waldorf Astoria Rabat Salé, Conrad Athens The Ilisian, Conrad Hamburg and the first Curio Collection by Hilton in Thailand. The company has also announced new properties across Japan, Italy, Turks and Caicos, and Canada under its LXR, Canopy, Tempo and Signia brands. This accelerated growth aligns with Hilton’s strategy to open three luxury and lifestyle hotels per week throughout 2025.

HLT Stock’s Price Performance

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Year to date, HLT has gained 0.8% against the industry’s 5.3% decline. The company is benefiting from strong demand for leisure travel, growth in business transient and group travel, unit expansion efforts, strategic partnerships and acquisitions. Also, the focus on luxury and lifestyle properties bodes well. Expansion in the Asia-Pacific region, particularly with new Conrad hotels, demonstrates growing global demand for upscale offerings.

However, a macro slowdown in China is a concern. Hilton observed softer trends continuing into the second quarter. It expects second-quarter RevPAR to remain flat year over year due to stable short-term bookings and the timing of the Easter holiday. Earnings estimates for 2026 have declined in the past 30 days, depicting analysts’ concern regarding the stock’s growth potential.

HLT Zacks Rank & Key Picks

Hilton currently has a Zacks Rank #3 (Hold). 

Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Fox Corporation (FOX - Free Report) , Stride, Inc. (LRN - Free Report) and Laureate Education, Inc. (LAUR - Free Report) . 
  
Fox currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
 
The company delivered a trailing four-quarter earnings surprise of 30.9%, on average. The stock has gained 10.6% in the year-to-date period. The Zacks Consensus Estimate for Fox’s fiscal 2025 sales and earnings per share (EPS) implies growth of 15.3% and 32.4%, respectively, from the year-ago levels.
 
Stride currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 94.7%, on average. The stock has gained 52.8% in the year-to-date period.
 
The Zacks Consensus Estimate for Stride’s fiscal 2025 sales and EPS indicates an increase of 16.7% and 51.2%, respectively, from the year-ago levels.

Laureate Education presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 56.1%, on average. The stock has moved up 24.2% in the year-to-date period.
 
The Zacks Consensus Estimate for Laureate’s 2025 sales and EPS indicates growth of 0.3% and 23.7%, respectively, from the year-ago period’s levels.

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