Hilton Worldwide Holdings Inc. (NYSE:HLT) is known for its scale, size and commercial platform. The company has a portfolio of more than 100 hotels and resorts in Latin America. Hilton is actively pursuing growth opportunities in Latin American and currently has more than 70 hotels in the region, including nearly 30 projects in Mexico. Also, the company has fortified its global hold apart from expanding in the domestic market.
In line with this expansion strategy, Hilton recently launched Homewood Suites by Hilton Silao Airport in Mexico. Being the 55th Hilton hotel in the country, it will offer 139 suites and is located in close proximity to the main commercial hub. It also conveniently positioned near the El Bajío International Airport.
Notably, Homewood Suites by Hilton has been gaining significant traction. The brand currently has two properties in Mexico and a growing pipeline of upcoming hotels in Dominican Republic and Peru. The latest hotel launch not only adds to the company’s brand portfolio but will also help it gain traction in key markets.
On Jan 4, Hilton completed the spin-off of Park Hotels & Resorts, Inc. (NYSE:PK) and Hilton Grand Vacations Inc. (NYSE:HGV) , resulting in three independent, publicly-traded companies. On the same day, the company put the previously announced 1-for-3 reverse stock split into effect. All these developments are expected to make Hilton a fee-based, capital efficient and resilient business, with substantial global expansion potential.
Post the split, the company’s shares have rallied nearly 31.9% to date and the S&P 500 market gained 16.3%.
However, macroeconomic fluctuations, unfavorable currency translation and competition from larger hoteliers like Marriott International, Inc. (NASDAQ:MAR) might dent Hilton’s top line.
Nonetheless, this Zacks Rank #2 (Buy) company can continue gaining traction on aggressive expansion plans. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Marriott International (MAR): Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report
Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report
Park Hotels & Resorts Inc. (PK): Free Stock Analysis Report
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