10 Best Leisure and Recreation Services Stocks to Buy Now

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

Number of Hedge Fund Holders: 68

One of the Best Leisure Stocks, Hilton Worldwide Holdings Inc. (NYSE:HLT) is a well-known name in the hotel business. From the upscale Waldorf Astoria Hotels & Resorts to the more affordable Hampton by Hilton Hotels, it offers a portfolio of 24 prominent hotel brands. The company’s development pipeline reached a record 462,400 rooms in 2023, and the hotel firm established an exclusive alliance with Small Luxury Hotels of the World.

Like Marriott, Hilton Worldwide Holdings Inc. (NYSE:HLT) has a strong loyalty program that keeps visitors coming back. There are currently over 200 million members of Hilton Honors. The firm’s mid-single-digit percentage of hotel rooms worldwide and its 20% share of all industry pipeline rooms under construction serve as indicators of the strength of its brand.

Hilton Worldwide Holdings Inc. (NYSE:HLT)’s pricing power is strengthened by its growing portfolio, which includes LivSmart Studios, Spark by Hilton, and acquisitions like Graduate Hotels and Nomad, even in the face of a slight drop in travel demand. Spark presents a substantial growth driver because of its potential for thousands of units.

In Q3 2024, Hilton Worldwide Holdings Inc. (NYSE:HLT) reported a 6.26% YoY rise in revenue, mostly due to improvements in occupancy, ADR (average daily rate), and franchise and management fee revenues. The business opened a record 531 hotels, adding more than 36,000 rooms and achieving the largest net unit growth (7.8%) in its history. Strong customer loyalty has been shown by the company’s achievement of 200 million Hilton Honors members. Globally, RevPAR increased by 4% in the Americas outside of the U.S. and 7% in Europe.

For the third quarter of 2024, adjusted EBITDA was $904 million, up 8% year over year, and adjusted EPS was $1.92. The number of rooms in the development pipeline increased by 8% year over year, with nearly half of them still under construction and 60% of them outside of the United States. Furthermore, group booking trends are still strong, with future bookings for 2025 rising by 10% and Group RevPAR up 5% YoY.

Bill Ackman’s Pershing Square was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 7.37 million shares worth $1.70 billion as of Q3.