THIS IS A BIG QUESTION. I'LL TRY TO START WITH HILTON (HLT) AND MAKE
THE WAY DOWN THE LIST. This may take a few days. If you can get more
specific, that might help. Maybe critique what I list, let me know
what is not helpful, and what will be more helpful. IF you want
financial data, specific information about margins, or any sort of
comparison, I can send you numbers. You just need to specify, for
example, REVPAR, EBITDA, GM, or whatever you need to get you rolling.
To begin:
Growth potential comes, from increasing RevPAR & strengthening
margins. The company has also been expanding its time-share business
(which makes up about 11% of the Company EBITDA).
Hilton expands unit growth faster than the industry, penetrating (I
hate this word) the market.
Owned properties are clustered in major cities. These properties lead
the margins in the industry, and boast RevPar of 8 to 9% annually. If
you wanted to compete, you couldn?t afford to enter these areas.
Quoting the company at a press conference: ?even if somebody wanted
to build an 800,000, 1500 room convention hotel to compete with any of
these properties, it wouldn?t happen in anyone?s lifetime. So the
financing isn?t there, the land isn?t there. So, these kinds of
hotels that we own are pretty much immune from new supply and that?s a
critical part of the equation.?
Next, the company went global. It has 2800 hotels across across the
major cities ?Sydney, Tokyo, London, and Paris. But yet, Hilton
International makes up only 15% of the hotels.
<Q> How so?
<A> The company has been, and continues to, convert brands. There is
the Hilton Full Service Brand, the Hampton Inn, Homewood Suites,
Embassy Suites, Doubletree, and Hampton Inn. Plus, there is some
luxury brand, call the Conrad. Don?t know much about it, but it
sounds sweet.
The company has also been focusing on buying back shares & and
improving its credit rating.
This information came from company releases/Conference, which may be
found via the company web-site. |
