Should You Invest in the Invesco Leisure and Entertainment ETF (PEJ)?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 03 2024
0mins
Should l Buy HLT?
Source: NASDAQ.COM
Invesco Leisure and Entertainment ETF Overview: The Invesco Leisure and Entertainment ETF (PEJ) is a passively managed fund that provides exposure to the Consumer Discretionary - Leisure and Entertainment sector, with assets over $243 million and an expense ratio of 0.58%. It aims to match the performance of the Dynamic Leisure & Entertainment Intellidex Index.
Performance and Holdings: Year-to-date, PEJ has increased by 13.52% and 24.25% over the past year, with a high risk profile indicated by a beta of 1.36. The ETF's top holdings include Sysco Corp, Hilton Worldwide, and Royal Caribbean Cruises, representing about 44.51% of total assets.
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Analyst Views on HLT
Wall Street analysts forecast HLT stock price to fall
18 Analyst Rating
11 Buy
7 Hold
0 Sell
Moderate Buy
Current: 321.510
Low
253.00
Averages
292.37
High
340.00
Current: 321.510
Low
253.00
Averages
292.37
High
340.00
About HLT
Hilton Worldwide Holdings Inc is a global hospitality company, which is engaged in managing, franchising and leasing hotels and resorts, and licensing its intellectual property (IP), including brand names, trademarks and service marks. The Company operates through two segments, which include management and franchise and ownership. The management and franchise segment includes all the hotels it manages for third-party owners, as well as all properties that license its intellectual property (IP), and/or use its booking channels and related programs, and where it provides other contracted services. The ownership segment includes nightly hotel room sales, food and beverage sales and other services at its consolidated hotels. It also includes approximately 46 hotels consisting of 15,287 total rooms. Its brands include Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, LXR Hotels & Resorts, NoMad, Signia by Hilton, Canopy by Hilton, Hilton Hotels & Resorts and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Company Announcement: Hilton Worldwide Holdings has announced a $1 billion offering of senior notes.
Interest Rate Details: The senior notes will have an interest rate of 5.500% and are due in 2031.
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- Need for Technological Upgrades: Experts emphasize the hotel industry's challenge of balancing enhanced security with guest comfort, noting that while some emerging security firms offer AI monitoring solutions, hotels have been slow to adopt new technologies due to cost and privacy concerns.
- Industry Reflection and Improvement: The incident has prompted the hotel sector to reassess security strategies; despite Hilton's claims of adhering to stringent Secret Service protocols, Trump's skepticism about the hotel's security indicates a need for deeper reforms in industry practices.
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Company Announcement: Hilton Worldwide Holdings has announced a $1 billion offering of senior notes.
Interest Rate Details: The senior notes will have an interest rate of 5.500% and are due in 2031.
See More
HILTON WORLDWIDE HOLDINGS INC - REVEALS $1 BILLION OFFERING OF SENIOR NOTES MATURING IN 2031
- Company Announcement: Hilton Worldwide Holdings has announced a senior notes offering amounting to $1 billion.
- Maturity Date: The senior notes are set to mature in 2031.
See More
Expedia Beats Q1 Estimates Amid Strong Travel Demand
- Earnings Beat: Expedia reported an adjusted profit of $1.96 per share for Q1, surpassing analysts' expectations of $1.38, demonstrating strong profitability amid robust international travel demand.
- Significant Revenue Growth: Q1 revenue rose approximately 15% year-over-year to $3.43 billion, exceeding market expectations of $3.35 billion, indicating stronger performance in global markets compared to the U.S.
- Impact of Conflict on Bookings: Although the Middle East conflict negatively affected bookings, resulting in a two-point decline in gross bookings and room nights, cancellations have subsided in April, indicating potential market recovery.
- Strong Advertising Performance: The company's advertising and media segment grew by 15% in Q1, with Trivago achieving a remarkable 47% revenue growth, further enhancing the overall revenue structure of the company.
See More
Hilton to Offer $1 Billion Senior Notes Due 2031
- Financing Plan: Hilton Domestic Operating Company intends to offer $1 billion in senior notes, with plans to use $450 million of the proceeds to repay borrowings under its senior secured revolving credit facility, thereby alleviating financial burdens and optimizing capital structure.
- Use of Proceeds: The net proceeds from this offering will be allocated to debt repayment and general corporate purposes, demonstrating the company's flexibility and strategic approach to financial management.
- Future Outlook: Hilton anticipates a 2%-3% growth in revenue per available room (RevPAR) by 2026, despite headwinds in the Middle East, reflecting the company's confidence in market recovery.
- Shareholder Returns: Hilton plans to return $3.5 billion to shareholders over the coming years, indicating a commitment to shareholder value while pursuing sustained growth, thereby enhancing investor confidence.
See More
Hotel Industry Faces Weak Demand Ahead of World Cup
- World Cup Outlook Dim: Despite Marriott International (MAR) and Hilton (HLT) rising approximately 14.5% and 9% this year, respectively, hotel demand in U.S. host cities is underwhelming, raising concerns about the upcoming 2026 FIFA World Cup.
- Marriott's Optimistic Forecast: Marriott is set to report its Q1 earnings on Wednesday, with CEO Anthony Capuano stating that the World Cup is expected to contribute 30-35 basis points to global RevPAR growth, although market sentiment remains cautious regarding this outlook.
- Hilton's Silence: Hilton's recent earnings report notably omitted any mention of the World Cup, with CEO Chris Nassetta admitting that the demand
See More
Security Breach at White House Dinner Raises Concerns
- Security Vulnerability Exposed: During the White House Correspondents' Association dinner, suspect Cole Allen breached security at the Washington Hilton, highlighting significant vulnerabilities in hotel security during major events; although Trump and attendees were unharmed, the incident raised widespread concerns about hotel security measures.
- Need for Technological Upgrades: Experts emphasize the hotel industry's challenge of balancing enhanced security with guest comfort, noting that while some emerging security firms offer AI monitoring solutions, hotels have been slow to adopt new technologies due to cost and privacy concerns.
- Industry Reflection and Improvement: The incident has prompted the hotel sector to reassess security strategies; despite Hilton's claims of adhering to stringent Secret Service protocols, Trump's skepticism about the hotel's security indicates a need for deeper reforms in industry practices.
- Budget vs. Security Dilemma: Hotels often face budget constraints when addressing security upgrades, with experts noting that many allocate resources toward external threats while underestimating risks posed by registered guests, a complacency that could lead to severe consequences.
See More
