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Hilton (HLT) Opens Hilton Wen'an in China, Eyes Unit Growth
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Hilton Worldwide Holdings Inc. (HLT - Free Report) recently announced the opening of a hotel named Hilton Wen'an in the Beijing-Tianjin-Hebei region under its flagship brand Hilton Hotels & Resorts. The hotel, which is owned by Luneng Group Co. Ltd, will be managed by Hilton.
This 227-roomed hotel, offering Hilton’s signature services, lies in close proximity to the Beijing Daxing International Airport and Bai Yang Dian Wetland Park.
The move underscores Hilton’s efforts to expand in international markets and strengthen its brand name. Though the company has productively expanded in China, Latin America and Europe, it continues to face intense competition from both large hotel chains like Marriott (MAR - Free Report) and Hyatt (H - Free Report) as well as smaller independent local hospitality providers like Choice Hotels (CHH - Free Report) .
Consequently, shares of Hilton have declined 17.1% in the past year, better than the industry’s fall of 31.6%.
Expansion — A Major Growth Driver
Hilton continues to drive unit growth to maintain position as the fastest-growing global hospitality company. The company’s continuous efforts toward expanding brands globally help increase its market share.
In third-quarter 2018, the company achieved net unit growth of 14,800 rooms, marking a 24% increase from the prior-year quarter. Further, the company added 113 hotels, taking the room count to 16,100. For 2018, it projects approximately 6.5% net unit growth. It also has more rooms under construction in Europe, the Middle East and the Asia Pacific compared with any other hotel chain.
We expect expansion to drive Hilton’s system-wide comparable revenue per available room (RevPAR). In the third quarter, comparable RevPAR increased 2% year over year on growth in average daily rate (ADR). Also, the recent hotel addition will strengthen the Hilton Hotels & Resorts brand’s presence. Currently, the brand comprises more than 579 hotels in 89 countries and territories.
Efforts to Fortify Loyalty Program
The hotel is part of Hilton Honors, one of the largest loyalty programs in the hospitality industry. Hilton extensively focuses on expanding its loyalty program to drive occupancy and revenues. With about 82 million members, this network created an extremely valuable asset for the company. In fact, in the third quarter of 2018, more than 3.5 million members were added to Hilton Honors. In fact, the loyalty program increased occupancy in the third quarter to nearly 60%.
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Hilton (HLT) Opens Hilton Wen'an in China, Eyes Unit Growth
Hilton Worldwide Holdings Inc. (HLT - Free Report) recently announced the opening of a hotel named Hilton Wen'an in the Beijing-Tianjin-Hebei region under its flagship brand Hilton Hotels & Resorts. The hotel, which is owned by Luneng Group Co. Ltd, will be managed by Hilton.
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This 227-roomed hotel, offering Hilton’s signature services, lies in close proximity to the Beijing Daxing International Airport and Bai Yang Dian Wetland Park.
The move underscores Hilton’s efforts to expand in international markets and strengthen its brand name. Though the company has productively expanded in China, Latin America and Europe, it continues to face intense competition from both large hotel chains like Marriott (MAR - Free Report) and Hyatt (H - Free Report) as well as smaller independent local hospitality providers like Choice Hotels (CHH - Free Report) .
Consequently, shares of Hilton have declined 17.1% in the past year, better than the industry’s fall of 31.6%.
Expansion — A Major Growth Driver
Hilton continues to drive unit growth to maintain position as the fastest-growing global hospitality company. The company’s continuous efforts toward expanding brands globally help increase its market share.
In third-quarter 2018, the company achieved net unit growth of 14,800 rooms, marking a 24% increase from the prior-year quarter. Further, the company added 113 hotels, taking the room count to 16,100. For 2018, it projects approximately 6.5% net unit growth. It also has more rooms under construction in Europe, the Middle East and the Asia Pacific compared with any other hotel chain.
We expect expansion to drive Hilton’s system-wide comparable revenue per available room (RevPAR). In the third quarter, comparable RevPAR increased 2% year over year on growth in average daily rate (ADR). Also, the recent hotel addition will strengthen the Hilton Hotels & Resorts brand’s presence. Currently, the brand comprises more than 579 hotels in 89 countries and territories.
Efforts to Fortify Loyalty Program
The hotel is part of Hilton Honors, one of the largest loyalty programs in the hospitality industry. Hilton extensively focuses on expanding its loyalty program to drive occupancy and revenues. With about 82 million members, this network created an extremely valuable asset for the company. In fact, in the third quarter of 2018, more than 3.5 million members were added to Hilton Honors. In fact, the loyalty program increased occupancy in the third quarter to nearly 60%.
Hilton currently carries 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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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>