HLT

Hilton Worldwide Holdings Inc

Consumer


Presented:01/19/2017
Price:$57.50
Cap:$19.01B
Current Price:$236.12
Cap:$58.19B

Presented

Date01/19/2017
Price$57.50
Market Cap$19.01B
Ent Value$28.53B
P/E Ratio12.29x
Book ValueN/A
Div Yield0%
Shares O/S329.93M
Ave Daily Vol3,550,574
Short IntN/A

Current

Price$236.12
Market Cap$58.19B
Hilton Worldwide Holdings, Inc. operates as a holding company, which provides hospitality services through its subsidiaries. It is engaged in the owning, leasing, managing, developing, and franchising hotels, resorts, and timeshare properties. The company operates through three segments: Management and Franchise, Ownership, and Timeshare. The Management and Franchise segment manages hotels, resorts and timeshare properties owned by third parties and license its brands to franchisees. The Ownership segment consists of hotels that it owns or lease. The Timeshare segment markets and sells timeshare intervals, operates timeshare resorts and a timeshare membership club and provides consumer financing. Hilton Worldwide Holdings was founded on March 18, 2010 and is headquartered in McLean, VA.

Publicly traded companies mentioned herein: Hilton Worldwide Holdings Inc (HLT), Hilton Grand Vacations Inc (HGV), Park Hotels & Resorts Inc (PK), Marriott International Inc (MAR)

Highlights

The presenter is long shares of Hilton Worldwide Holdings (HLT), which completed the spin-offs of Park Hotels & Resorts (Park) and Hilton Grand Vacations (HGV) on January 4, 2017. He considers HLT’s CEO, Christopher Nassetta, to be one of the best in the industry (a point that the group agreed with), and noted that his interests are clearly aligned with investors’. Nassetta owns over 2mm shares, and has never been a seller. HLT is a “world class” hotel franchise company that generates high-quality cash flow predominantly from franchise and management fees. The presenter is forecasting $3.50 per share of cash flow in 2019, and believes a 20x multiple is appropriate. A 5% FCF yield is also reasonable, which allows him to target a $70 near-term price objective (12-18 months).

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