Pershing Square Holdings, an investment holding company, released its first half 2024 investor letter. A copy of the same can be downloaded here. It has been a productive year for Pershing Square, despite a slight decline in performance year-to-date through August 13, 2024. The Company’s NAV per share, including dividends, climbed by 5.7% during the first half of 2024 and fell by 2.3% for year-to-date through August 13, 2024, and its share price increased by 14.7% and decreased by 2.9%, respectively. The S&P 500 increased by 15.3% and 14.9% over the same period. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Pershing Square Holdings highlighted stocks like Hilton Worldwide Holdings Inc. (NYSE:HLT) in the second quarter 2024 investor letter. Hilton Worldwide Holdings Inc. (NYSE:HLT) is a hospitality company that manages, owns, and leases hotels and resorts. The one-month return of Hilton Worldwide Holdings Inc. (NYSE:HLT) was 1.52%, and its shares gained 47.12% of their value over the last 52 weeks. On August 21, 2024, Hilton Worldwide Holdings Inc. (NYSE:HLT) stock closed at $216.43 per share with a market capitalization of $53.334 billion.
Pershing Square Holdings stated the following regarding Hilton Worldwide Holdings Inc. (NYSE:HLT) in its Q2 2024 investor letter:
“In the first half of 2024, Hilton Worldwide Holdings Inc. (NYSE:HLT) 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.
In the second quarter, HLT’s revenue per room (“RevPAR”), the industry metric for same-store sales, increased 3.5% as compared to 2023. Combined with strong 6% net unit growth, aggregate fee revenues grew 10%. Earnings per share grew 17% year-over-year, benefiting from Hilton’s excellent cost control and continued best-in-class capital return. Reflecting an incrementally challenging macroeconomic picture, principally in China, the company slightly reduced the upper end of their prior RevPAR guidance, now estimated by management to be +2% to +3%, while modestly increasing full year’s earnings guidance…” (Click here to read the full text)
Empty lobby of a high-end hotel showcasing the modern, luxurious interior of the hotel chain.
Hilton Worldwide Holdings Inc. (NYSE:HLT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Hilton Worldwide Holdings Inc. (NYSE:HLT) at the end of the second quarter which was 61 in the previous quarter. In the second quarter, Hilton Worldwide Holdings Inc.’s (NYSE:HLT) RevPAR increased 3.5% year-over-year (see the details here). While we acknowledge the potential of Hilton Worldwide Holdings Inc. (NYSE:HLT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Hilton Worldwide Holdings Inc. (NYSE:HLT) and shared the list of best travel and leisure stocks to buy. Pershing Square Holdings expressed its positive outlook for Hilton Worldwide Holdings Inc. (NYSE:HLT) in the 2023 annual report. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
