2. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Number of Hedge Fund Holders as of Q3: 69
Pershing Square’s Equity Stake: $1.70 Billion
Founded in 1919 and headquartered in McLean, Virginia, Hilton Worldwide Holdings Inc. (NYSE:HLT) is an American multinational hospitality company that manages and franchises a broad portfolio of hotels, resorts, and timeshare properties. The company owns and operates three major kinds of hospitality businesses: luxury and full-service hotels and resorts, extended-stay suites, and focused-service hotels. Apart from boarding and lodging, Hilton Worldwide Holdings Inc. (NYSE:HLT) offers its guests food, restaurants, dining, and loyalty programs.
Pershing Square owns over 7.37 million shares of the company as of Q3 2024, with a total value of nearly $1.70 million. During the third quarter of 2024, the fund decreased its stake in Hilton Worldwide Holdings Inc. (NYSE:HLT) by 17.67% from 8.95 million. However, by the end of the September quarter, 68 funds out of the 900 funds tracked by Insider Monkey held stakes in Hilton worth over $6.26 billion, up from 64 funds by the end of Q2 which suggests an overall positive hedge fund sentiment about the stock.
The most recent earnings results of Hilton Worldwide Holdings Inc. (NYSE:HLT) reported that the company has beat the consensus estimate of $1.84 by $0.08, posting earnings per share for the quarter to be $1.92 against $1.55 EPS for the same period in 2023. September marked the end of the third consecutive quarter wherein the company beat analyst expectations for its EPS. The quarterly revenue was reported as $2.87 billion, up 7.26% compared to $2.67 billion for the same quarter last year. Its net income for the third quarter of 2024 was $344 million, reflecting a year-over-year decrease of 8.75%. Operating income was $ 622 million, down 4.31% from the same quarter of 2023.
Hilton Worldwide Holdings Inc. (NYSE:HLT) is set to significantly expand its presence in the fast-growing lifestyle hotel category, with plans to double its portfolio from 350 to 700 properties by 2028. This growth is driven by strong demand from both guests and hotel owners, fuelled by Hilton’s recent acquisition of Graduate Hotels and NoMad. In 2023 alone, Hilton added over 50 new lifestyle hotels and approved another 100, with expectations to open over 100 more in 2024. The addition of Graduate and NoMad brands will further support this expansion, including the debut of NoMad’s flagship London hotel and several new Graduate properties. According to Kevin Jacobs, chief financial officer, and president, as Hilton celebrates 10 years in the lifestyle segment, the company is focused on rapid growth, aiming to provide distinctive, localized travel experiences in top global destinations.
Pershing Square stated the following regarding Hilton Worldwide Holdings Inc. (NYSE:HLT) in its Q2 2024 investor letter:
“In the first half of 2024, Hilton generated strong revenue growth as the lodging industry experienced solid global demand against a favorable supply backdrop. Near-term industry trends remain positive, with continued strong international growth, improving business transient demand and extremely robust group demand, which is poised to sequentially accelerate in the third quarter. Leisure travel continued to moderate from the high levels of recent years following the COVID-19 reopening.”
