Hilton Worldwide Holdings Inc (HLT) Considered REIT Spinoff


Shares of Hilton Worldwide Holdings Inc (NYSE:HLT) were up considerably in late afternoon trading today after rumors made their way around traders’ desks that the company was considering spinning off their real estate assets into a REIT. According to Dow Jones, Hilton Worldwide Holdings Inc (NYSE:HLT) would move forward with such a plan if the Internal Revenue Service would allow for it.

In addition to this possible news, the stock also was the beneficiary of a general market uptrend following the Federal Reserve’s interest rate hike. The stock is currently trading higher by 5.30% or $1.13 following the positive news, hitting $22.47 per share at the time of us publishing this article. About 9.82 million shares traded hands or up 56.12% from the average. HLT has declined 26.69% since May 13, 2015 and is currently downtrending. It has underperformed the S&P500 by 23.02%.

From a total of 9 analysts covering Hilton Worldwide Holdings (NYSE:HLT) stock, 6 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $34 while the lowest target price is $25. The mean of all analyst targets is $30.20 which is 34.40% above today’s ($22.47) stock price. Hilton Worldwide Holdings was the topic of 15 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Berenberg initiated shares on December 8 with a “Hold” rating. Goldman Sachs downgraded shares to a”Neutral” rating and a $28 target share price in their report from an August 5. FBR Capital initiated HLT stock in a recent report from November 20 with a “Mkt Perform” rating. Finally, Deutsche Bank maintained the stock with a “Buy” rating in a report they issued on a September 22.

The institutional sentiment decreased to 0.84 in Q2 2015. It’s down 1.79, from 2.63 in 2015Q2. The ratio fall, as 60 funds sold all their Hilton Worldwide Holdings Inc shares they owned while 131 reduced their positions. 49 funds bought stakes while 111 increased their total positions. Institutions now own 931.32 million shares which is 2.33% more than the previous share count of 910.14 million in 2015Q2.

Proprium Capital Partners L.P. holds 83.03% of its total portfolio in Hilton Worldwide Holdings Inc, equating to 8.56 million shares. Blackstone Group L.P. owns 452.79 million shares representing 33.36% of their total US portfolio. Moreover, Grs Advisors Llc has 7.97% of their total portfolio invested in the company, equating to 2.94 million shares. The New York-based Long Pond Capital Lp has a total of 4.44% of their portfolio invested in the stock. Caerus Global Investors Llc, a New York-based fund reported 70,575 shares owned.

Hilton Worldwide Holdings Inc. is a hospitality company. The company has a market cap of $21.51 billion. The Firm comprises of approximately 4,322 hotels, resorts and timeshare properties comprising of 715,062 rooms in 94 countries and territories. It has 29.68 P/E ratio. The Firm operates through three divisions: management and franchise, ownership and timeshare.