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Do You Believe in the Long-Term Growth Potential of Hilton Worldwide Holdings (HLT)?

By Soumya Eswaran | August 28, 2025, 8:06 AM

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following the soft start to the year, the midcap fund rebounded in the second quarter, driven by demand for AI and a low-quality rally, which enabled the growth stocks to overcome the tariff-led uncertainty. The strategy failed to outpace the benchmark, despite strong absolute returns, due to limited exposure to several of the rally’s leading participants. However, the firm is optimistic about the ability of the mid-cap growth universe to offer attractive long-term compounders. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Mid Cap Growth Strategy highlighted stocks such as Hilton Worldwide Holdings Inc. (NYSE:HLT). Hilton Worldwide Holdings Inc. (NYSE:HLT) is a hospitality company that manages, franchises, owns, and leases hotels and resorts. The one-month return of Hilton Worldwide Holdings Inc. (NYSE:HLT) was 3.10%, and its shares gained 26.99% of their value over the last 52 weeks. On August 27, 2025, Hilton Worldwide Holdings Inc. (NYSE:HLT) stock closed at $276.40 per share, with a market capitalization of $65.008 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Hilton Worldwide Holdings Inc. (NYSE:HLT) in its second quarter 2025 investor letter:

"Also in the consumer discretionary sector, we established a position in Hilton Worldwide Holdings Inc. (NYSE:HLT), one of the largest and fastest-growing lodging companies with over 1.25 million rooms today. The company has a robust pipeline of 500,000 rooms in development and supporting its 6%–7% annual growth target. With high-margin fees from its asset light franchising and management contracts, strong operating margins and a history of returning capital to shareholders through share buybacks, Hilton’s scale, brand strength and resilient business model position it for solid long-term growth."

Josh Brown Pitches ‘Potential Breakout’ Stock

Hilton Worldwide Holdings Inc. (NYSE:HLT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held Hilton Worldwide Holdings Inc. (NYSE:HLT) at the end of the second quarter, which was 76 in the previous quarter. While we acknowledge the potential of Hilton Worldwide Holdings Inc. (NYSE:HLT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Hilton Worldwide Holdings Inc. (NYSE:HLT) and shared stock picks from Bill Ackman stock portfolio. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.

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