This is a step-by-step stock review to answer the question, is Hilton Worldwide Holdings (HLT) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Hilton Worldwide Holdings stock a good buy?
- Hilton Worldwide Holdings Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Hilton Worldwide Holdings (HLT) stock a good buy?
1. Hilton Worldwide Holdings Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- 1919: Conrad Hilton founded the first Hilton hotel in Cisco, Texas, marking the beginning of a hospitality empire.
- 1925: Opened the first hotel to bear the Hilton name, the Dallas Hilton.
- 1943: Became the first coast-to-coast hotel chain in the United States with the purchase of hotels in New York City, San Francisco, and elsewhere.
- 1954: Acquired the Statler Hotel chain, making Hilton the largest hospitality company in the world at the time.
- 1955: Opened the first Hilton hotel outside the U.S. in Puerto Rico, marking the start of international expansion.
- 1969: Launched the Hilton Honors program, one of the first hotel loyalty programs.
- 1987: Opened the first Hilton Garden Inn, expanding its brand portfolio.
- 2007: Acquired by The Blackstone Group for $26 billion, making it one of the largest private equity deals in history.
- 2009: Rebranded to Hilton Worldwide Holdings and continued global expansion.
- 2013: Returned to the public market with a successful IPO on the NYSE under the ticker symbol HLT.
- 2016: Completed the spin-offs of its real estate and timeshare businesses into separate entities.
- 2020s: Focused on expanding its digital capabilities and enhancing its sustainability initiatives, including reducing its environmental footprint.
Hilton Worldwide Holdings’ rich history of innovation, strategic acquisitions, and global expansion has solidified its position as a leader in the hospitality industry.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: On sale
- Score: 61/100
- MOS: 77%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Hilton Worldwide Holdings makes money:
- Room Revenue: Earns the majority of its income from renting hotel rooms to guests.
- Franchise Fees: Collects fees from hotel franchisees for the use of the Hilton brand, including initial franchise fees and ongoing royalties.
- Management Fees: Receives fees from managing hotels on behalf of property owners, including management and incentive fees.
- Food and Beverage Sales: Generates revenue from dining services, bars, and room service offered at its hotels.
- Meeting and Event Spaces: Profits from renting out conference rooms, meeting spaces, and hosting events.
- Loyalty Program: Gains revenue from the Hilton Honors loyalty program, which can drive bookings and increase brand loyalty.
- Real Estate Investments: Occasionally profits from the sale or lease of hotel properties and related assets.
Here are a few of the other companies that Hilton Worldwide Holdings has acquired over the years.
- Hilton Grand Vacations
- Hampton Inn
- Homewood Suites
- Embassy Suites
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Hilton Worldwide Holdings (HLT) stacks up against other companies.
- InterContinental Hotels Group PLC.(IHG) – 72
- Hilton Worldwide Holdings Inc.(HLT) – 61
- Hilton Worldwide Holdings Inc.(HLT) – 61
- GreenTree Hospitality Group Ltd.(GHG) – 56
- Hyatt Hotels Corporation.(H) – 44
- Wyndham Hotels & Resorts, Inc.(WH) – 28
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Global Expansion: Expanded Hilton’s presence globally, significantly increasing the number of properties and rooms under management.
- Brand Portfolio Growth: Diversified Hilton’s brand portfolio, introducing new brands like Tru by Hilton and Canopy by Hilton to cater to different market segments.
- Digital Transformation: Led the digital transformation of Hilton, enhancing the customer experience through the Hilton Honors app and other digital innovations.
- Operational Efficiency: Improved operational efficiency through strategic initiatives, resulting in increased profitability and shareholder value.
- IPO Success: Successfully took Hilton public in 2013, raising significant capital and enhancing the company’s market profile.
- Sustainability Initiatives: Launched and advanced sustainability programs like Travel with Purpose, focusing on environmental and social impact.
- Customer Loyalty: Strengthened the Hilton Honors loyalty program, significantly increasing membership and customer retention rates.
- Resilience During COVID-19: Navigated Hilton through the COVID-19 pandemic, implementing strategies to manage the crisis and position the company for recovery.
Christopher J. Nassetta’s achievements at Hilton Worldwide Holdings Inc. include global expansion, brand portfolio growth, digital transformation, improved operational efficiency, a successful IPO, advancing sustainability initiatives, strengthening customer loyalty, and effectively managing the company through the COVID-19 pandemic.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Hilton Worldwide Holdings (HLT is 77/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Hilton Worldwide Holdings (HLT) stock a good buy?
Some of the top questions investors can have is Hilton Worldwide Holdings (HLT) stock a good buy or should I buy Hilton Worldwide Holdings (HLT) stock?
Hilton Worldwide Holdings is an attractive investment due to its strong global presence and diverse portfolio of hotel brands. Under CEO Christopher J. Nassetta’s leadership, Hilton has expanded significantly, increasing the number of properties worldwide. The company’s focus on digital transformation has enhanced the customer experience through the Hilton Honors app and other innovations. Hilton’s brand portfolio includes a range of options, from luxury to budget, catering to various market segments. The company has also shown resilience during the COVID-19 pandemic, implementing effective strategies for recovery. However, potential investors should consider the impact of global economic conditions and travel industry fluctuations. Overall, Hilton’s strong market presence, diverse brand portfolio, and commitment to innovation and customer satisfaction make it a solid investment in the hospitality sector.
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To truly know if Hilton Worldwide Holdings is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.