Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Hilton Hotels Corp. (NYSE: HLT) is the favorite conservative play from Dylan Jovine, editor of The Tycoon Report. He explains, "During the past two years, while Paris Hilton has been getting all the press, it's been the Hilton Corporation that's truly been doing great things.

"If HLT reaches $35 per share, sit tight and wait for a pullback. Meanwhile, here are the top reasons Hilton is worth owning:

• Hilton wasn't doing anything for a long time but just managing its assets. Last year they decided to buy back their international arm. They got their house in order and are now expanding. From 2001 to present, profit margins have been steadily increasing.
• I've always loved the hotel business: You build something -- which means that your heavy costs are incurred up front -- and then, if you know how to market it, people come. Most risk is in development.
• During the past few years, Hilton increased capacity at their hotels by lowering costs and tightening operations. This is evidenced by the fact that sales have increased 8% from 2005 while operating income increased by 22% over 2004. Net income was up 93%!
• Transformative year in 2005: Acquired Hilton Lodgings PLC and became largest hotel company in the world with 2,800 properties and 475,000 rooms.
• Demand is very strong -- Hilton managed to raise prices above the inflation rate: That means pricing power.
• When Hilton bought the London Hotel, they decided to do an all-cash transaction, which meant they had to issue debt. The reason? They would rather take on debt then issue equity, realizing the upside.
• Increased operating margins: When you increase revenue but lower costs, you increase profitability. They've been doing that to perfection."

To see Dylan's favorite speculative stock pick for 2007, click here.