Hilton Worldwide Holdings Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$887.00 | Ljpx | Vxskxtzzl |
Hilton's Moat Upgraded to Wide From Narrow, as It Grows Its Brand Across More Regions and Segments
Business Strategy and Outlook
Hilton’s brand intangible asset (which underlies its wide moat rating) is strengthening, aided by its strong upper scale and luxury presence, which is augmented by emerging midscale (Spark brand launched in 2023) and extended-stay offerings (LivSmart also released in 2023). In fact, both Hilton's premium economy/midscale brand Spark and extended-stay concept LivSmart already have a few hundred partners in negotiation to join the company's portfolio. Long term, Spark has the potential to reach a few thousands units, offering an attractive unit growth catalyst for the company.