April 8, 2019

HLT – Market expectations are for record-high Uniform ROA, and management is confident in book-direct channels, RevPAR growth, and Hilton Honors


  • Hilton Worldwide Holdings Inc. (HLT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 25.5x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, and management is confident in their book-direct channels, Americas ex-US RevPAR growth, and Hilton Honors’ value proposition
  • Specifically, management is confident in the value proposition of their book-direct marketing and pricing efforts, and in their strategies to increase the use of direct channels. Additionally, they are confident in their Americas ex-US RevPAR growth and China’s macro environment. Moreover, they are confident in their focus on creating compelling reasons to join Hilton Honors, and in their ability to exit pipeline deals that are unlikely to happen
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