Barclays Lowers Price Target on Hotel Stocks (HLT, MAR, CHH, WH)

Hilton Worldwide Holdings Inc. (NYSE: HLT) is facing headwinds as Barclays recently reduced its price target on the hotel giant, reflecting a cautious outlook on the broader hospitality industry. This adjustment comes amid expectations of softer sales results in the near term and potential challenges that could impact future performance.

Barclays' price target was reduced from $287 to $233, maintaining an “Overweight” rating.

This revision is part of a broader assessment indicating potential declines in the lodging industry's outlook due to accumulating challenges.

Despite the lowered target, Barclays highlighted Hilton's resilient fee structures, which are expected to sustain robust profitability amidst these headwinds.

Barclays' adjustments aren't isolated to Hilton; the firm has also revised price targets for other major hotel chains, including Marriott International, Wyndham Hotels & Resorts, and Choice Hotels International. These revisions collectively point to a sector-wide concern regarding potential softness in sales and RevPAR (Revenue Per Available Room), a key metric for the lodging industry.

Specifically, Barclays lowered its price target for Marriott to $262 from $276, maintaining an “Equal Weight” rating. For Wyndham Hotels, the price target was decreased to $100 from $121, while maintaining an “Overweight” rating. Choice Hotels saw its price target lowered to $117 from $121, with Barclays maintaining an “Underweight” rating.

The analyst's report suggests that the anticipated “soft” sales results for Q3 and potential downside to Q4 outlooks are contributing factors to the revised price targets. Furthermore, Barclays has reduced its 2026 estimates for the sector, expressing a relatively downbeat stance pending signs of broad RevPAR reacceleration that could drive a positive revision cycle. The current market conditions suggest a need for caution, as the lodging industry navigates potential economic slowdowns and changing consumer behaviors.