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Hilton Plans Tru by Hilton Hotel Opening in North Carolina

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Tru by Hilton — a new midscale innovative brand belonging to Hilton Worldwide Holdings Inc. (HLT - Free Report) — recently announced plans of opening a 106-room hotel in Morrisville, NC. In collaboration with Parks Hospitality Group, the new hotel will be located in the Raleigh area at 350 Airgate Drive, in close proximity to the Raleigh-Durham Airport.

Slated to be the brand’s first hotel in the state of North Carolina, Tru by Hilton Raleigh Durham Airport will provide guests with a range of amenities including a fitness center, food and beverage options and advanced technological facilities. The property will also participate in the guest loyalty program — Hilton Honors loyalty program — that serves a number of members worldwide.

Tru by Hilton, with its relentless expansion effort has reached a rapid growing developmental pipeline within the hospitality industry. In fact, apart from the running four hotels, the company expects to open 10 hotels by the end of 2017. Additionally, 50 more hotels are slated for launch in 2018.

Notably, Hilton’s scale, size, commercial platform and industry-leading brands continue to drive unit growth, taking a disproportionate share of the global hotel development activity.

In January, Hilton completed the spin-offs of Park Hotels & Resorts, Inc. (PK - Free Report) and Hilton Grand Vacations Inc. (HGV - Free Report) resulting in three independent, publicly traded companies. On the same day, the company put the previously announced 1-for-3 reverse stock split into effect. All these developments are expected to make Hilton a fee-based, capital efficient and resilient business, with enormous growth potential worldwide.

Post the split on Jan 4, the company’s shares have rallied nearly 18.4% while the S&P 500 market gained 10%.





However, macroeconomic fluctuations, unfavorable currency translations and competition from larger hoteliers like Marriott International, Inc. (MAR - Free Report) might dent Hilton’s top line. This Zacks Rank #2 (Buy) company can counter the slump with aggressive expansion plans. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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