Hilton Worldwide Holdings: Growth Justifies Its Expensive Valuation

2026-02-11 16:42:29 ET

Shares of Hilton Worldwide Holdings ( HLT ) have been an excellent performer over the past year, gaining 20%. Even as travel spending has been sluggish in the U nited States , the company’s capital-light business model has delivered solid cash flow, aided by a growing number of franchised locations. With an impressive pipeline, growth is set to continue, though valuation is increasingly pricing this trajectory in. Valuation led me to downgrade shares to a “ H old” in October 2024 , but a continued "B uy" rating would have been justified, given their 38% run. With updated financials, now is a good time to revisit Hilton....

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