Barclays has revised its price target for Hilton (HLT, Financial), bringing it down slightly from $233 to $232 while maintaining an Overweight rating. Despite the minor adjustment, Barclays continues to see Hilton as a strong performer in the market, citing the company's ability to gain market share.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Hilton Worldwide Holdings Inc (HLT, Financial) is $250.38 with a high estimate of $312.00 and a low estimate of $223.00. The average target implies an upside of 10.59% from the current price of $226.41. More detailed estimate data can be found on the Hilton Worldwide Holdings Inc (HLT) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Hilton Worldwide Holdings Inc's (HLT, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hilton Worldwide Holdings Inc (HLT, Financial) in one year is $254.02, suggesting a upside of 12.19% from the current price of $226.41. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hilton Worldwide Holdings Inc (HLT) Summary page.
HLT Key Business Developments
Release Date: April 29, 2025
- Adjusted EBITDA: $795 million in Q1, up 6% year over year.
- Adjusted EPS: $1.72 for Q1.
- System-wide RevPAR Growth: 2.5% year over year.
- Net Unit Growth: 7.2% in Q1.
- Development Pipeline: Over 503,000 rooms, up 7% year over year.
- Management and Franchise Fees Growth: 5% year over year.
- Dividend: $0.15 per share in Q1, totaling $37 million.
- Full-Year 2025 RevPAR Growth Expectation: 0% to 2%.
- Full-Year 2025 Adjusted EBITDA Guidance: $3.65 billion to $3.71 billion.
- Full-Year 2025 Adjusted EPS Guidance: $7.76 to $7.94.
- Capital Return Expectation for 2025: Approximately $3.3 billion in buybacks and dividends.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hilton Worldwide Holdings Inc (HLT, Financial) exceeded expectations for adjusted EBITDA and adjusted EPS in the first quarter of 2025.
- The company reported a 2.5% year-over-year growth in system-wide RevPAR, driven by strong group bookings and urban market performance.
- Hilton Worldwide Holdings Inc (HLT) achieved a net unit growth of 7.2% with 186 new hotel openings, representing a 20% year-over-year increase.
- The development pipeline expanded to over 503,000 rooms, with a 7% year-over-year increase and significant international growth.
- Hilton Worldwide Holdings Inc (HLT) was named the number one best company to work for in the United States by Great Place to Work and Fortune for the second consecutive year.
Negative Points
- Broader macroeconomic uncertainty intensified in March, leading to pressured demand, particularly in the leisure segment.
- Second quarter RevPAR is expected to be approximately flat year-over-year due to ongoing macroeconomic uncertainty and the Easter holiday shift.
- Leisure-transient RevPAR growth was only 1%, with softening demand patterns as the quarter progressed.
- Short-term bookings have remained roughly flat year-over-year, indicating a wait-and-see approach from travelers.
- RevPAR in the Asia Pacific region was flat year-over-year, with a decline in China due to strong outbound travel during Chinese New Year and tough year-over-year comparisons.
