Hilton (HLT) Opens Hotel in Sanya, Expands Garden Inn Brand

Hilton Worldwide Holdings, Inc.HLT continues to expand its upscale brand, Hilton Garden Inn, both domestically and internationally. Recently, the company announced the opening of Hilton Garden Inn Sanya, on Hainan Island.

This 280-roomed hotel is located in the downtown area, 11 kilometers away from Sanya Phoenix International airport. It encompasses a fitness center, an indoor pool and a business center. Currently, Hilton's Garden Inn brand comprises over 800 hotels across 41 countries and territories catering to the needs of business and leisure travelers alike.

The latest move underscores Hilton's efforts to expand in international markets and strengthen its brand name. As the company has productively expanded in China, Latin America and Europe, it continues to face intense competition from both large hotel chains like Marriott MAR and Hyatt H as well as smaller independent local hospitality providers like Choice Hotels CHH . Consequently, shares of Hilton have lost 11.3% in the past year, narrower than the industry 's 27.3% decline.

Expansion Efforts to Drive Growth

In a bid to maintain its position as the fastest-growing global hospitality company, Hilton continues to boosts unit growth. Also, its consistent efforts toward expanding brands globally drive its market share significantly.

In third-quarter 2018, the company achieved net unit growth of 14,800 rooms, marking a 24% increase from the prior-year quarter. Further, the company added 113 hotels, taking the room count to 16,100. For 2018, Hilton projects net unit growth of approximately 6.5%. It also has more rooms under construction in Europe, the Middle East and the Asia Pacific compared with any other hotel chain.

We expect Hilton's expansion efforts to boost system-wide comparable revenue per available room (RevPAR). In the third quarter, comparable RevPAR increased 2% year over year on growth in average daily rate (ADR).

Also, the recent hotel addition will strengthen the Hilton Hotels & Resorts brand's presence. Currently, the brand comprises more than 579 hotels in 89 countries and territories.

Hilton currently has a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Hyatt Hotels Corporation (H): Free Stock Analysis Report

Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report

Choice Hotels International, Inc. (CHH): Free Stock Analysis Report

Marriott International (MAR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.