How Hilton’s Expanded SLH Partnership Has Changed the Luxury Investment Story at Hilton Worldwide (HLT)

• Hilton Worldwide Holdings has expanded its exclusive partnership with Small Luxury Hotels of the World (SLH), now including over 450 hotels in 12 new countries, according to an announcement from SLH.
• This collaboration has led to a very large rise in booking traffic for participating properties and enables Hilton Honors members to earn and redeem points at unique luxury destinations worldwide.
• We'll explore how Hilton’s expanded global luxury footprint through the SLH partnership could influence its long-term investment narrative.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

Hilton Worldwide Holdings Investment Narrative Recap

To be a Hilton Worldwide Holdings shareholder, you need to believe in the company's ability to grow its global hotel system, leverage premium partnerships, and expand its luxury and lifestyle offerings, despite ongoing risks to core travel demand and RevPAR growth. While the expanded SLH collaboration shows potential for increased loyalty engagement and direct booking revenue, it does not materially change Hilton’s most important short-term catalyst, its large development pipeline in growth markets, or reduce its primary risks, such as softness in major market RevPAR.

The July launch of LivSmart Studios by Hilton, an extended-stay brand, is particularly relevant as it underscores Hilton's push to diversify its portfolio and target emerging travel trends. The company is seeking revenue alternatives beyond traditional segments, complementing its partnerships like SLH, as it faces ongoing RevPAR and demand headwinds in key regions.

However, investors should be aware that, in contrast to Hilton’s expansion efforts, persistent economic headwinds in China have the potential to...

Read the full narrative on Hilton Worldwide Holdings (it's free!)

Hilton Worldwide Holdings is projected to reach $14.8 billion in revenue and $2.5 billion in earnings by 2028. Achieving this outlook would require a 45.4% annual revenue growth rate and an earnings increase of $0.9 billion from the current $1.6 billion.

Uncover how Hilton Worldwide Holdings' forecasts yield a $273.50 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate Hilton’s fair value anywhere from US$100 to US$280.29 across four analyses. While opinions differ, Hilton’s rapid expansion of its luxury footprint remains central to its broader growth potential.

Explore 4 other fair value estimates on Hilton Worldwide Holdings - why the stock might be worth less than half the current price!

Build Your Own Hilton Worldwide Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hilton Worldwide Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Hilton Worldwide Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hilton Worldwide Holdings' overall financial health at a glance.

No Opportunity In Hilton Worldwide Holdings?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• Rare earth metals are the new gold rush. Find out which 30 stocks are leading the charge.
• AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com