Hilton's (HLT) Signia Debuts in Georgia With 976-Room Hotel
Hilton Worldwide Holdings Inc.’s HLT brand, Signia, debuted in Georgia with Signia by Hilton Atlanta. The company announced it to be Atlanta’s largest ground-up hotel development project in 40 years.
The company has the largest global market in Atlanta, which is reflected through 136 hotels across its 13 brand portfolios. Also, Hilton’s expansion pipeline remains solid with 40 new hotels undergoing different stages of design and construction in the city.
More on Signia by Hilton Atlanta
This 976-room property is built on the repurposed foundation of the Georgia Dome, housing eight food and beverage experiences, rooftop pool, a spa and a fitness center. Also, its 100,000 square feet of meeting space comprises the largest hotel ballroom in Georgia, an extravagant outdoor event deck and a lawn accompanied with Club Signia.
Furthermore, this new hotel is owned by Georgia World Congress Center Authority and forms a part of the authority’s Championship Campus. This is an integrated destination for convention, sports and entertainment in North America.
Hilton shares optimistic views on the brand’s debut as it aligns with its growth initiatives and marks a positive impact on the community through local job creation partnerships, incremental convention and leisure business.
Hilton on an Expansion Spree
Hilton intently focuses on expanding its footprint through new hotels under its diversified brand portfolio. Notably, the company’s broad geographic diversity lowers the effect of volatility in individual markets. More than half of its pipeline is located outside the United States.
During third-quarter 2023, Hilton opened 107 new hotels. New properties unveiled during the quarter include the Bankers Alley Hotel in Nashville, Curio in Savannah, Georgia and Motto in New York City. Also, Hilton’s brand debuts, Spark in Mystic, CT, and Tempo in New York Times Square, are noteworthy additions to the property portfolio. As of Sep 30, 2023, Hilton's development pipeline comprised nearly 3,190 hotels with almost 457,300 rooms across 119 countries and territories, including 29 countries and territories where it currently has no running hotels.
In May 2023, the company announced a new brand with a working title, Project H3, which includes apartment-style accommodations to meet the specific needs of long-stay travelers, particularly the growing workforce travel market. During the third quarter, the company broke ground for its first property (under the project) in Kokomo, IN, which is slated to open in the summer of 2024.
Price Performance
Shares of this hospitality company have gained 22.2% in the past six months, outperforming the Zacks Hotels and Motels industry’s 11.5% growth. This uptrend can be attributed to the upward trend in travel and tourism, along with its focus on strategic partnerships and loyalty programs.
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However, increased owned and leased hotels expenses, along with other expenses from managed and franchised properties, are impacting the bottom line of the company. Considering this headwind, the earnings estimates for 2024 have moved south in the past seven days, depicting analysts’ concerns about the stock’s growth potential. Nonetheless, its expansion initiatives are likely to spark growth prospects in the upcoming period.
Zacks Rank & Key Picks
Hilton currently carries a Zacks Rank #3 (Hold).
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