Hilton Hotels (NYSE: HLT) to Face Guests with Clenched Pockets?

• Recent Turkey-Syria Earthquake wrecked tourism in that area.
• The slowing US economy may push out middle class customers.
• Expansion of Global Properties in 2023.

Hilton Worldwide Holdings Inc. (NYSE: HLT) is an hospitality company that owns, leases, manages, develops and franchises hotels and resorts under its name. The hotel, across the globe, operates under various hotel brands like Waldorf Astoria Hotels & Resorts, LXR hotels, Conrad Hotels, Hilton Grand Vacations and various others. 

Various global properties to debut in 2023, under the reign of Hilton group. Hilton’s luxury brands will continue expanding their global portfolios with new openings and rollout of new signings spanning over Waldorf Astoria Hotels, Conrad Hotels and LXR Hotels. Over the duration of a few years, Hilton’s luxury portfolio will inflate in ways that caters its guests with ultimate staycation experience. 

The Hilton hotels are most dense near the Turkey- Syria region, after the American continent. After the massive quake hitting that region, a 7.8-magnitude shock wave left the countries in grits. As a consequence, tourism in the region will be set back by many years. The ongoing death-toll and collapsed buildings may have entrapped Hilton hotels to shed too. 

Slowing US economy and inflationary trends can also slice a big chunk as traveling and vacation will face higher tariffs and directly impact the hospitality industry. In January, Hilton Group unveiled a newer segment Spark by Hilton, a hotel chain for economy travelers. Targeting the middle income group, Sparks may encounter deserted customers as the aimed-consumers survive the trend with drained purchasing power.

The HLT stock prices have formed a rising regression channel, with an increase by 22.5% since January. Present prices face a resistance near $154.35, and has fallen by 2.41% in the intraday session. The volume shows a buying spree to transform into selling pressure due to falling prices. 

A sudden downtrend in HLT price, made MACD to record descending buyer bars while the lines moved to converge. The RSI after holding near the 70-range, retraces to 60-range, to show decline in buyers. The price reversal was predicted due to RSI’s position. 

Hilton Group released its earnings report recently. The reports came with a surprise and showed the hotel chain to outperform Wall Street’s estimates. The earnings reported were $1.59. $0.369 or 30.22% more than the estimate of $1.22. The revenue reported was $2.444 billion, $97.95 million more than the estimate of $2.346 billion.

Conclusion

The fourth quarter’s report lifted investor hopes of HLT performing decently in 2023. The current situations can pose a problem to the hospitality industry but if strategically dealt with, can benefit in the long term. The holder of HLT stock must watch for the support near $136.20.

Technical levels

Support levels: $136.20 and $128.00

Resistance levels: $154.35 and $160.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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