STRA - Hilton Up 50% in the Past Year: What's Driving the Stock? | Benzinga
Shares of Hilton Worldwide Holdings Inc. (NYSE: HLT) have surged 49.5% in the past year compared with the industry's 32.7% growth. The company has been benefiting from solid leisure demand, group business improvements and digital initiatives. Also, strength in hotel signings and new developments bode well. However, rising interest rates and elevated inflation are a concern.
Let us discuss the factors that highlight why investors should retain the stock.
Growth Catalysts
Hilton is benefiting from solid revenue per available room (RevPAR) improvement. During first-quarter 2024, system-wide comparable RevPAR rose 2% year over year (on a currency-neutral basis) owing to an increase in occupancy and average daily rate. The upside was primarily backed by strong international and group trends and improving business activity. The company witnessed substantial RevPAR gains in Europe, Asia Pacific, the Middle East and Africa region, owing to strong leisure demand and recovery in international inbound travel. The company anticipates the momentum to persist for some time.
Image Source: Zacks Investment Research
The company is consistently utilizing cutting-edge technology platforms to enhance guest experiences and drive growth. This includes features such as a digitally-empowered concierge service for luxury brands, the option to select rooms based ...