In this article, we discuss the 3 top stock picks of billionaire Bill Ackman. If you want to read about some stocks in the Ackman portfolio, go directly to Bill Ackman Stock Portfolio: 7 Top Stock Picks.
3. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Number of Hedge Fund Holders: 58
Hilton Worldwide Holdings Inc. (NYSE:HLT) a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. The hedge fund chaired by Ackman owned close to 10.3 million shares of Hilton Worldwide Holdings Inc. (NYSE:HLT) at the end of September 2023 worth $1.5 billion, representing 14.74% of the portfolio.
On October 26, investment advisory Trusit maintained a Hold rating on Hilton Worldwide Holdings Inc. (NYSE:HLT) stock and raised the price target to $175 from $172, noting that the firm posted another steady quarter with a fundamentally strong and diversified pipeline.
At the end of the second quarter of 2023, 58 hedge funds in the database of Insider Monkey held stakes worth $3.7 billion in Hilton Worldwide Holdings Inc. (NYSE:HLT), compared to 63 in the previous quarter worth $3.9 billion.
In its first half 2023 investor letter, Pershing Square Holdings, an asset management firm, highlighted a few stocks and Hilton Worldwide Holdings Inc. (NYSE:HLT) was one of them. Here is what the fund said:
“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential. In the first half of 2023, Hilton generated robust revenue growth. In the second quarter, HLT’s revenue per room (“RevPAR”), the industry metric for same-store sales, increased 12% as compared to 2022. Recent quarters continue to benefit from stable demand and rising rates driving leisure growth to new highs, while business transient continues to sequentially accelerate, with group sales just now approaching pre-COVID levels.
While net managed and franchised units grew 4% year-over-year during the most recent quarter, slightly below the full year target which Hilton adjusted to approximately 5% per annum, net unit growth (“NUG”) is poised to accelerate in the back half of the year. While management anticipates NUG of approximately 5% this year, they anticipate it will accelerate to 5-6% in 2024 and return to its historical 6-7% range over the next several years. Net unit growth is poised to accelerate in 2024 as Hilton begins to roll out its new premium economy and long-term-stay concepts (Spark and H3, respectively) and as international development activity accelerates. Hilton signed more than 36,000 rooms in the quarter, the largest quarterly signing in the company’s history. The company’s pipeline includes 441,000 rooms with approximately 50% under construction…” (Click here to read the full text)
