Yahoo Finance Hilton (HLT) Sparks a New Era With Premium Economy Debut
Hilton Worldwide Holdings Inc. HLT has ignited the premium economy category with the grand opening of Spark by Hilton Mystic Groton. This marks the company's swift entry into the sector, with over 400 opportunities in development.
Spark by Hilton Mystic Groton, strategically situated near I-95 in Mystic, CT, offers 120 inviting guest rooms and a seasonal outdoor pool. The brand distinguishes itself with a 24-hour retail market, complimentary breakfast with premium offerings and dynamic public spaces for various activities.
Spark is part of Hilton Honors, offering members exclusive benefits and digital tools. Hilton's Chief Brand Officer, Matt Schuyler, highlighted the brand's unprecedented speed from announcement to market, showcasing its commitment to innovation.
As Spark gains momentum, HLT is poised to reshape the premium economy segment and redefine the landscape of affordable yet high-quality travel experiences. Mystic Groton debut is just the beginning, with many more Sparks on the horizon, solidifying Hilton's position as a pioneer in this evolving hospitality industry.
Shares of the company have gained 29.9% in the past year compared with the industry’s growth of 26.2%.
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Expansion Efforts Bode Well
In a bid to maintain its position as the fastest-growing global hospitality company, Hilton continues to drive unit growth. During second-quarter 2023, it opened 92 new hotels. HLT also achieved net unit growth of nearly 11,200 rooms.
During the quarter, HLT unveiled its 2,900th Hampton Inn and 600th Home2 Suites property. Further, it announced the opening of Hilton Okinawa, Miyako Island Resort in Japan and Conrad Shenzhen in China.
In May 2023, the company introduced a new brand with a working title — Project H3. The initiative includes apartment-style accommodations to meet specific needs of long-stay travelers, particularly the growing workforce-travel market.
As of Jun 30, 2023, Hilton's development pipeline comprised nearly 3,060 hotels, with almost 440,900 rooms across 116 countries and territories. This includes 30 countries and territories where it currently has no running hotels. For 2023, management expects net unit growth to be approximately 5%.
Zacks Rank & Other Key Picks
HLT currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Consumer Discretionary sector are:
Strategic Education, Inc. STRA presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
STRA has a trailing four-quarter earnings surprise of 12.1%, on average. The stock has gained 23.1% in the past year. The Zacks Consensus Estimate for STRA’s 2023 sales and earnings per share (EPS) indicates growth of 4.9% and 27.9%, respectively, from the year-ago period’s levels.
Choice Hotels International, Inc. CHH carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 3.1%, on average. The stock has gained 4.2% in the past year.
The Zacks Consensus Estimate for CHH’s 2023 sales and EPS suggests increases of 10.7% and 13.7%, respectively, from the year-ago levels.
OneSpaWorld Holdings Limited OSW currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 42.6%, on average. The stock has gained 34% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates rises of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
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