10 Best Hospitality Stocks to Buy According to Hedge Funds

1. Hilton Worldwide Holdings Inc. (NYSE:HLT)

Number of Hedge Fund Investors: 79

The Best Hospitality Stock, Hilton Worldwide Holdings Inc. (NYSE:HLT) is also one of the biggest hotel firms in the world, with over 8,300 hotels worldwide. Its varied portfolio comprises several midscale and premium hotels, as well as the luxury brands Waldorf Astoria and Conrad Hotels. Moreover, it has over 200 million members in its Hilton Honors loyalty program.

Hilton Worldwide Holdings Inc. (NYSE:HLT) has reported impressive results, similar to other major travel and tourism stocks, as a result of rising travel demand. In Q4 2024, the company saw sales growth that set a new high. The quarter saw 4.45% YoY growth in revenue. Adjusted EBITDA surpassed $3.4 billion, up 11% from the previous year, because of strong net unit expansion. The business’s expansion strategy and fee-based model are still profitable. The firm produced $150 million in dividends for the year, along with $3 billion in shareholder returns for the quarter.

The fact that Hilton Worldwide Holdings Inc. (NYSE:HLT) has historically placed a high priority on expansion is another positive sign for investors. In 2024, it achieved record net unit growth of 7.3% by opening more rooms than ever before, adding the most rooms in its history, and entering new markets like Australia, Paraguay, and Bonaire with new brands and strategic alliances.

Stephen Grambling, a Morgan Stanley analyst, raised his price objective on Hilton Worldwide Holdings Inc. (NYSE:HLT) from $265 to $274. The firm advises investors to stick with businesses that can sustain or even grow in-construction pipelines with limited usage of capital, pointing out that 2025 outlooks in the lodging industry are similar to 2024 in that they have low RevPAR, consistent net unit growth, but a challenging development backdrop.

Overall, Hilton Worldwide Holdings Inc. (NYSE:HLT) ranks first on our list of the 10 Best Hospitality Stocks to Buy According to Hedge Funds. While we acknowledge the potential for HLT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HLT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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