Hilton Worldwide Holdings Inc. (HLT) Soars 5.14% on Upgrade, Strong Q1 Earnings
1min read Hilton Worldwide's stock price surged by 5.14% in pre-market trading on May 12, 2025, reflecting a strong bullish sentiment among investors.
Jefferies analyst David Katz has upgraded hilton worldwide holdings inc. (HLT) from a Hold to a Buy rating, raising the price target from $228 to $296. Katz believes that Hilton's robust business model is well-suited to expansion even amid the current economic uncertainties. The analyst highlights that the company’s potential for earnings growth and its resilience make it deserving of a higher valuation, especially in this unpredictable financial environment. This reassessment suggests that hilton is well-positioned to capitalize on current market conditions.
Hilton Worldwide Holdings Inc. reported strong financial performance for the first quarter of 2025. The company exceeded expectations for adjusted EBITDA and adjusted EPS, with adjusted EBITDA reaching $795 million, up 6% year over year, and adjusted EPS at $1.72. System-wide RevPAR grew by 2.5% year over year, driven by strong group bookings and urban market performance. The company also achieved a net unit growth of 7.2% with 186 new hotel openings, representing a 20% year-over-year increase. The development pipeline expanded to over 503,000 rooms, with a 7% year-over-year increase and significant international growth.
Despite the positive financial results, broader macroeconomic uncertainty intensified in March, leading to pressured demand, particularly in the leisure segment. Second quarter RevPAR is expected to be approximately flat year-over-year due to ongoing macroeconomic uncertainty and the Easter holiday shift. Leisure-transient RevPAR growth was only 1%, with softening demand patterns as the quarter progressed. Short-term bookings have remained roughly flat year-over-year, indicating a wait-and-see approach from travelers. RevPAR in the Asia Pacific region was flat year-over-year, with a decline in China due to strong outbound travel during Chinese New Year and tough year-over-year comparisons.
Ask Aime: If Hilton's stock is up 5%, is it a buy now?
