Ackman backs Hilton

Pershing Square reinvests in chain

Bill Ackman is checking into the Hilton again.

The hedge fund tycoon disclosed a 3.7 percent stake in Hilton Worldwide on Thursday, less than a year and a half after the silver-haired hedgie notched a 32 percent gain on a previous investment in the hotel chain.

News of the new Hilton stake sent the company’s shares up 5.8 percent on Thursday, to $67.55.

Ackman’s Hilton purchase is worth roughly $740 million and comprises nearly 13.9 percent of Pershing Square Holdings, the publicly traded vehicle that closely tracks Pershing Square’s main fund.

The hedgie’s reasons for getting back into the hospitality stock weren’t clear. Nor was his timing. Investors were told in a press release that they would get more details during Pershing Square’s investor call next month.

While Hilton’s stock had an impressive run during Ackman’s previous 11month holding period, shares tumbled 20 percent this year.

Hilton’s stock got hammered Wednesday, falling 7.3 percent during a broader selloff in equities markets after the hotel chain reported third-quarter revenue that missed analyst targets and hinted of a possible slowdown in China.

Ackman would know something about a slowdown.

His fund has suffered three consecutive years of losses following a disastrous investment in Valeant Pharmaceuticals — now known as Bausch Health — and a moneylosing, $1 billion short bet against Herbalife.

But over the past year, Pershing Square has slimmed down and has reaped big rewards from passive investments in Nike and Lowe’s.

Earlier this month Pershing Square announced a $900 million stake in Starbucks. Pershing Square Holdings is up 6.2 percent this year.

As for Hilton, Ackman said last year that he “long admired” the brand and it was a “big disappointment” that his stake wasn’t larger.

At the time, Ackman said Hilton was “unlikely to face a meaningful threat” from Airbnb because Hilton customers are attracted to the brand’s consistency and loyalty programs.

Nevertheless, Hilton is still working to woo younger customers. On Tuesday it announced Motto by Hilton, a series of pricecompetitive micro hotels in urban areas.

And although Hilton is down for the year, Ackman isn’t alone in singing the brand’s praises.

“They have done all of the right things in the past few years,” David Katz, analyst at Jefferies, told The Post, referring to the company’s spinoffs and new brand launches.

Reps from Hilton declined to comment on Pershing Square’s stake.