FBR Capital analyst Bryan Maher reiterates Outperform rating and raises price target on Hilton Worldwide Holdings Inc. (NYSE: HLT) to $65 (from $64), suggesting the planned spin-offs are progressing “smoothly,” as the company reported 2016 fourth quarter results and 2017 guidance in line with estimates.

Maher comments, "HLT's 4Q16 results were roughly in line with our expectations, despite the significant changes the company was undergoing as it prepared to spin off a sizable portion of its real estate into a REIT, along with the spin-off of its timeshare division— both occurred on January 3, 2017. While we adjusted our model at that time to reflect pro forma data for the spin-offs and the corresponding 1:3 reverse split of HLT shares, HLT reported its 4Q16 earnings using the pre-spin and reverse split numbers. As such, for comparison purposes, we use here our pre-adjusted numbers. However, HLT's forward outlook for 2017, which is in line with our estimates, uses post spin/split numbers. That said, 4Q16 results were solid, despite HLT's system wide comparable RevPAR of 0.9% being a bit on the light side compared to the U.S. industry wide RevPAR of 3.2%. Importantly, HLT's outlook of 1.0% to 3.0% RevPAR for 2017 is consistent with our 2.1% estimate (for HLT), and HLT's expectation of adjusted EBITDA of $1,835 million to $1,885 million is consistent with ours and the consensus expectation."