Should Hilton have a room in your portfolio?
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Hilton Worldwide 's stock saw an 8-percent rise upon its return to the markets on Thursday, but its large asset holdings and better-valued competitors could undermine its long term potential, two hotel industry analysts told CNBC. Rod Petrik, a lodging analyst with Stifel Nicolaus, said Hilton's $20 initial public offering price—the largest hotel IPO ever—seemed deserved, and he saw potential for revenue-per-available-room growth. But because of Hilton's debt and other drags, Starwood Hotels & Resorts Worldwide represents a better value, Petrik said in a research note Thursday. Chad Mollman, a travel and leisure analyst with Morningstar, said he doesn't agree with the IPO valuation. (Read more: )

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He said Hilton still receives a significant amount of cash flow from hotels it owns, which drive high capital costs and don't represent a growth business. Mollman said the IPO valuation represents a 20-percent premium compared to the average global hotel operator.

"We think the offering price is basically valuing the entire company as a management-franchise company, when they have a pretty high percentage of cash flow coming from owned hotels," Mollman said on CNBC's "Squawk on the Street."

Hilton CEO Chris Nassetta told CNBC in a later interview that the company plans to hold on to its physical assets in the near term in order to "mine value" from real estate. He said Hilton was the "fastest growing major hotel company" and that the company plans to become "investment grade" in two to three years. (Read more: Welcome to the Hotel Hilton)

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