Pershing Square Exits 1% Hilton Stake as Q4 Revenue Misses 6% Forecast
Bill Ackman’s Pershing Square sold its entire roughly 1% Hilton stake to reallocate capital into Meta Platforms. Hilton’s fourth-quarter revenue rose 5% year-over-year to $2.6 billion, narrowly missing the 6% growth analysts expected and triggering a 3% share decline.
1. Pershing Square Divests Hilton Position
Pershing Square Capital Management fully exited its approximately 1% equity stake in Hilton Worldwide in early February, freeing up capital for a larger investment into Meta Platforms. The sale underscores a strategic pivot by Bill Ackman’s fund away from lodging toward technology names.
2. Fourth-Quarter Revenue Growth Below Street
Hilton reported Q4 revenue of $2.6 billion, up 5% year-over-year, falling short of the 6% growth the street anticipated. Management cited softer demand in key urban markets and rising promotional activity as factors damping RevPAR gains.
3. Share Reaction and Analyst Response
Hilton shares declined roughly 3% following the release, reflecting investor disappointment with the growth miss and activist departure. Several analysts trimmed their price targets by 2–4% and flagged pressure on margins despite improving occupancy trends.
4. Outlook and Guidance Considerations
Looking ahead, Hilton reiterated its full-year targets but acknowledged elevated cost inflation and uncertain group demand. The company said it will focus on tighter cost controls, fee-based growth and asset-light development to bolster profitability.