Hilton's Brands Continue to Resonate With Travelers and Owners

We see lasting demand for Hilton’s strong upper-scale, lifestyle, and luxury presence, which is strengthening its brand intangible asset, the primary source of its wide moat. The firm's portfolio expanded by several hundred hotels in 2024 with the Small Luxury Hotels of the World partnership and acquisition of a majority interest in the NoMad brand. Hilton's emerging premium economy midscale brand Spark, launched in 2023, extended-stay offering LivSmart Studios, also launched in 2023, and acquisition of Graduate Hotels in 2024 all support its pricing prowess. As of Dec. 31, 2024, Spark already had about 100 hotels open and LivSmart had 75 hotels in the pipeline. Long term, Spark has the potential to reach a few thousand units, offering an attractive unit growth catalyst for the company.