Hilton Worldwide Holdings (NYSE:HLT) has collaborated with Tesla (NASDAQ:TSLA) to establish the largest electric vehicle (EV) charging network among hospitality companies. As per the deal, Tesla will deploy up to 20,000 EV chargers at 2,000 Hilton hotels located across the U.S., Mexico, and Canada, beginning in 2024.
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The agreement involves TSLA’s Universal Wall Connector chargers launched last month. These chargers are currently compatible with most of the EVs available in the market and can add up to 44 miles of range per hour. Hilton intends to install a minimum of six of these chargers at the designated hotels.
This initiative coincides with an anticipated increase in business travel, with numerous conferences and summits slated to take place in the near future.
Additionally, Hilton observed an increase in requests for charging stations at its hotels. Consequently, the company plans to improve the availability of EV charging facilities at its hotels.
Is HLT Stock a Good Buy?
The company reported robust financial performance in Q2 2023, with a 12% year-over-year increase in system-wide comparable RevPAR (revenue per available room). Furthermore, its Hilton Honors loyalty program is experiencing rapid growth. Nonetheless, analysts express cautious optimism due to mounting net debt and the need for capital in hotel development.
Hilton has a Moderate Buy consensus rating based on four Buys and five Holds. The average HLT stock price target of $162.67 indicates 5.55% upside potential. Shares of the company have gained about 24% so far this year.
