Zacks Investment Research | Nov 26, 2018 10:12PM ET
Hilton Worldwide Holdings Inc. (NYSE:HLT) has been constantly focusing on unit growth as a major strategy. To this end, the company saw a notable third quarter of 2018 for All Suites brand, which consists of Embassy Suites, Homewood Suites and Home2 Suites.
Year to date, Hilton has opened 1,000 All Suites properties, introduced the first modular construction hotel and tri-branded property. In fact, as of the third quarter, the brand has already surpassed the growth target for 2018. Moreover, the company plans to develop a pipeline of over 580 ongoing properties by year-end.
Per the company, innovative development along with operational strategies in 2018 has helped it achieve the milestone. Moreover, All Suites brands focus on expanding in growing urban and coastal destinations.
During the third quarter, the All Suites brand signed 138 new deals. The agreements include Embassy Suites by Hilton Waco, Homewood Suites by Hilton Honolulu International Airport and Home2 Suites by Hilton Euless DFW West. The first two properties are expected to open in 2021 while the third one is likely to be launched in 2020.
Buoyed by rapid growth in these brands, total revenues increased 7.7% from the year-ago quarter to $2,253 million in the third quarter. Also, the company achieved net unit growth of 14,800 rooms, indicating a 24% increase from the prior-year quarter.
We believe the company’s relentless expansion helps it in strategizing against rising competition in the industry, thereby helping it to further grow its market share. Meanwhile, shares of Hilton have declined 1.3% in the past year compared with the Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.