Summary
With 880,000 rooms in 103 countries and territories, Hilton Worldwide is among the world’s largest hotel companies. Its principal brands range from budget to luxury and include Hilton, Conrad, Waldorf Astoria, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Homewood Suites, Home2 Suites, Curio, Canopy, and Tru. With a market cap of approximately $62.9 billion, the shares are generally regarded as large-cap growth.
CONSUMER DISCRETIONARY
Our rating on the Consumer Discretionary sector is Market-Weight. The lagged effects from high inflation and high interest rates are weighing on consumer spending, particularly in big-ticket categories such furniture, appliances and home improvement.
The creation of the Communication Services sector in 2018 removed companies in areas including theatrical filmed entertainment, publishing, advertising, broadcasting, and cable & satellite communications. We believe that the net impact of the change has been a moderate reduction in Consumer Discretionary EPS growth and a slight boost in the weighted dividend yield.
As of the end of December, the sector accounted for 11.3% of the S&P 500. Over the past five years, the we
