HLT - Embedded Expectations Analysis - 2021 09 27
Hilton Worldwide Holdings Inc. (HLT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 32.1x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, and management is confident about improvements in rates levels, Waldorf Astoria brand additions, and their Honors program.Specifically, management is confident their performance is recovering and rate levels are improving very rapidly. In addition, they are confident there is going to be a recovery among lenders back to and beyond pre-pandemic levels and that the Waldorf Astoria in Monarch Beach and Laguna is an incredible addition to the brand. Also, they are confident their Honors program is beneficial for infrequent travelers and that there are plenty of employment opportunities across the whole industry in anticipation of unemployment benefits ending in September.
Hilton Worldwide Holdings is a holding company. Through its subsidiaries, the company is engaged in hospitality with operations organized in two operating segments: management and franchise, which includes all of the hotels the company manages for third-party owners, as well as all franchised hotels operated or managed by someone other than the company; and Ownership, which includes hotels that the company owned or leased or that are owned or leased by entities in which the company owns a noncontrolling financial interest. Hilton Honors is the company's guest loyalty program that rewards guests with points for each stay at nearly all of its properties, which are then redeemable for free nights and other goods and services.
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