In this article, we discuss the 5 leisure and recreation services stocks to buy. To read the detailed analysis of the industry, go directly to the 10 Leisure and Recreation Services Stocks to Buy.
5. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Number of Hedge Fund Holders: 57
Hilton Worldwide Holdings Inc. (NYSE:HLT) is a hospitality company that operates various types of hotels under different brands, including Waldorf Astoria Hotels & Resorts, Curio Collection by Hilton, Hilton Hotels & Resorts, and others.
On April 3, Hilton Worldwide Holdings Inc. (NYSE:HLT) announced that it acquired a majority controlling interest in Sydell Group and added the NoMad brand to the company’s portfolio. The company projected the development of around 100 NoMad properties globally over time.
In our list of leisure and recreation services stocks to buy, Hilton Worldwide Holdings Inc. (NYSE:HLT) takes the fifth spot. In the fourth quarter of 2023, 57 hedge funds had stakes in the stock worth $5.188 billion. As of Q4 of 2023, Pershing Square is the top shareholder in the company and has a position worth $1.67 billion.
Pershing Square Holdings stated the following regarding Hilton Worldwide Holdings Inc. (NYSE:HLT) in its fourth quarter 2023 investor letter:
“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential. Hilton generated strong financial performance in 2023 as revenue per available room (“RevPAR”), the industry metric for same-store sales, increased 13% year over year reflecting both the continued late-cycle international recovery from COVID-related industrywide disruption and strong domestic trends. Earnings-per-share grew 27% year over year, and are now ~60% above pre-COVID-19 levels reflecting the compounded benefit of Hilton’s net unit growth, excellent cost control, and share buybacks.
Near-term industry trends remain favorable, which will continue to benefit from continued robust RevPAR growth balanced across still improving occupancy trends and continued strength in average daily room rate (“ADR”). While aggregate occupancy remains modestly below pre-COVID levels, it is poised to improve in 2024 driven by acceleration in business transient travel, record group demand, and strong international growth. Similarly, ADR growth is likely to continue given strong demand against a backdrop of record low domestic supply growth of net new rooms. As a result, 2024 RevPAR growth is likely to remain above long-term trends. For context, STR Global, the industry’s leading hospitality research firm, is projecting 2024 U.S. RevPAR growth of 4%, while international RevPAR growth is likely to be even stronger…” (Click here to read the full text)
