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Hilton Opens Tru by Hilton Las Vegas Airport: Largest in US
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Hilton Worldwide Holdings Inc. (HLT - Free Report) recently announced the opening of Tru by Hilton Las Vegas Airport, the midscale brand’s eighth hotel in the United States.
Managed by Dallas-based Prism Hotels & Resorts, Tru by Hilton Las Vegas Airport, with six floors and 166 rooms, is the largest Tru by Hilton hotel property to date. The hotel is in close proximity to the McCarran International Airport, Vegas Strip and other entertainment areas.
Hiltonis known for its scale, size and commercial platform. The company currently has a portfolio of 14 world-class brands, comprising more than 5,100 properties with nearly 838,000 rooms in 103 countries and territories. Hilton has also considerably fortified its global hold apart from expanding in the domestic market.
We observe that the stock has rallied 16.6% in the last six months, significantly outperforming the S&P 500’s gain of 9%.
Brand Portfolio Expansion in Focus
The latest hotel launch not only boosts the company’s brand portfolio but will also help it gain traction in the domestic market. Notably, Tru by Hilton has the fastest growing developmental pipeline within the hospitality industry, courtesy of its relentless expansion efforts and a current portfolio of 470 hotels in various stages of development.
Meanwhile, given the improving economic indicators in the United States, the demand for hotels is steadily growing. Though increasing supply growth is expected to limit occupancy levels, overall demand in the country is expected to rise substantially on stronger group travel. This upbeat scenario is expected to benefit Hilton to a large extent.
Notably, Tru by Hilton is a part of Hilton Honors, which is one of the largest loyalty programs. With about 70 million members, this network has created an extremely valuable asset for the company. In fact, about 57% of all occupancy per night takes place through this membership program. The company is focused on making multiple enhancements to its loyalty program in order to make it more customer-centric, driving incremental value for guests and the overall system.
In addition to enhancing customer loyalty, Hilton maintains strong fundamentals and cash flow position, which are beneficial for its shareholders. In order to return more to shareholders, the company has opted for a more capital-light operating business model backed by the spin-off of a portfolio of hotels and resorts as well as its timeshare business.
Some other stocks with the same Zacks Rank from the space include Marriott International, Inc. (MAR - Free Report) , Choice Hotels International (CHH - Free Report) and Intercontinental Hotels Group (IHG - Free Report) .
Long-term earnings per share growth rate for Marriott International, Red Hat and Five9 is projected at 9.4%, 8.4% and 9.3%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Hilton Opens Tru by Hilton Las Vegas Airport: Largest in US
Hilton Worldwide Holdings Inc. (HLT - Free Report) recently announced the opening of Tru by Hilton Las Vegas Airport, the midscale brand’s eighth hotel in the United States.
Managed by Dallas-based Prism Hotels & Resorts, Tru by Hilton Las Vegas Airport, with six floors and 166 rooms, is the largest Tru by Hilton hotel property to date. The hotel is in close proximity to the McCarran International Airport, Vegas Strip and other entertainment areas.
Hiltonis known for its scale, size and commercial platform. The company currently has a portfolio of 14 world-class brands, comprising more than 5,100 properties with nearly 838,000 rooms in 103 countries and territories. Hilton has also considerably fortified its global hold apart from expanding in the domestic market.
We observe that the stock has rallied 16.6% in the last six months, significantly outperforming the S&P 500’s gain of 9%.
Brand Portfolio Expansion in Focus
The latest hotel launch not only boosts the company’s brand portfolio but will also help it gain traction in the domestic market. Notably, Tru by Hilton has the fastest growing developmental pipeline within the hospitality industry, courtesy of its relentless expansion efforts and a current portfolio of 470 hotels in various stages of development.
Meanwhile, given the improving economic indicators in the United States, the demand for hotels is steadily growing. Though increasing supply growth is expected to limit occupancy levels, overall demand in the country is expected to rise substantially on stronger group travel. This upbeat scenario is expected to benefit Hilton to a large extent.
Notably, Tru by Hilton is a part of Hilton Honors, which is one of the largest loyalty programs. With about 70 million members, this network has created an extremely valuable asset for the company. In fact, about 57% of all occupancy per night takes place through this membership program. The company is focused on making multiple enhancements to its loyalty program in order to make it more customer-centric, driving incremental value for guests and the overall system.
In addition to enhancing customer loyalty, Hilton maintains strong fundamentals and cash flow position, which are beneficial for its shareholders. In order to return more to shareholders, the company has opted for a more capital-light operating business model backed by the spin-off of a portfolio of hotels and resorts as well as its timeshare business.
Zacks Rank and Other Stocks to Consider
Hilton has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other stocks with the same Zacks Rank from the space include Marriott International, Inc. (MAR - Free Report) , Choice Hotels International (CHH - Free Report) and Intercontinental Hotels Group (IHG - Free Report) .
Long-term earnings per share growth rate for Marriott International, Red Hat and Five9 is projected at 9.4%, 8.4% and 9.3%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>