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HLT$321.54

Hilton Worldwide Holdings Inc.

Last Updated
Aug 7, 202621 days ago
Moat & Trend
Management
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Competitive Radar

Moat Score

70/100

Executive Summary

Hilton’s moat is built on a powerful global brand family, a large franchise footprint, and one of the industry’s most effective loyalty ecosystems. The asset-light model gives Hilton scale benefits without the capital intensity of owning most of its hotels, while franchise standards and centralized distribution help preserve brand consistency. Hilton Honors meaningfully supports repeat demand, direct bookings, and owner appeal, but customers can still multi-home across Marriott, Hyatt, and other chains, limiting lock-in. The company’s advantage is durable and economically attractive, but not impregnable: hotel brands are comparatively substitutable, loyalty economics can be gamed, and service quality is ultimately delivered by third-party owners. Overall, Hilton looks like a solid Narrow Moat name with a stable to mildly positive long-term outlook.

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Last Updated
Aug 7, 202621 days ago
Target Price
Analyst Consensus
FAIR VALUE
Financial Strength

Financial Score

64/100

Executive Summary

Hilton Worldwide’s most notable strength is its durable cash-generation engine, which has produced steadily rising operating cash flow and free cash flow even as revenue growth has moderated. Income statement performance remains solid, with revenue climbing from $8.8 billion in FY2022 to $12.0 billion in FY2025, though margin expansion has been limited and earnings have been uneven due to higher interest expense and tax normalization. That operating quality contrasts sharply with a weak balance sheet: liquidity is thin, debt is high, and equity remains deeply negative, leaving solvency pressure unresolved. Key ratios show improving asset turnover and respectable profitability, while growth forecasts still point to high-single-digit compounding and stronger EPS expansion ahead. Overall, Hilton presents a mixed profile of strong cash flow and decent operating performance offset by meaningful leverage and balance-sheet fragility, consistent with a mid-tier but constructive rating set.

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Frequently asked questions about Hilton Worldwide Holdings Inc.

Does Hilton Worldwide Holdings Inc. (HLT) have an economic moat?
MoatScan AI rates Hilton Worldwide Holdings Inc. (HLT) 70/100 for moat strength, assessed across five sources of competitive advantage: network effects, switching costs, intangible assets, cost advantages and efficient scale. Hilton’s moat is built on a powerful global brand family, a large franchise footprint, and one of the industry’s most effective loyalty ecosystems.Sign in free to see the Moat Type verdict and the pillar-by-pillar reasoning.
What is Hilton Worldwide Holdings Inc.'s moat score?
Hilton Worldwide Holdings Inc. (HLT) has a moat score of 70/100. The score is a weighted average of five pillar ratings: network effects, switching costs, intangible assets, cost advantages, and efficient scale. A higher score means the competitive advantages MoatScan AI identifies are wider and more durable.Sign in free to see each pillar rating, the Moat Type verdict and the moat trend.
Is HLT stock overvalued or undervalued?
MoatScan AI answers this by estimating HLT's intrinsic value with a discounted cash flow (DCF) model, then comparing that estimate to the current market price. A share price meaningfully below the estimate is flagged undervalued; meaningfully above it, overvalued. The estimate updates with each new financial analysis.Sign in free to see the fair value estimate, the implied upside or downside, and the verdict.
What is Hilton Worldwide Holdings Inc.'s fair value estimate?
MoatScan AI derives Hilton Worldwide Holdings Inc.'s (HLT) fair value per share from a discounted cash flow (DCF) model built on the company's reported financials, analyst growth forecasts, and a discount rate reflecting its cost of capital. The Financial Analysis tab shows the estimate alongside every assumption behind it.Sign in free to see the estimate and the full assumptions behind it.

Disclaimer: The analysis on this page is generated by AI and is provided for informational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any security. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decisions.