Three Hotel Stocks to Keep an Eye On Amid Industry Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 24 2025
0mins
Source: NASDAQ.COM
Industry Overview: The Zacks Hotels and Motels industry includes companies involved in owning, managing, and franchising hotels, as well as developing vacation ownership products and mobile accommodations, facing challenges like economic uncertainty and labor shortages.
Current Trends: Key trends affecting the industry include economic headwinds leading to reduced leisure and corporate travel demand, significant labor shortages impacting service quality, and a decline in revenue per available room (RevPAR) and occupancy rates.
Market Performance: The Zacks Hotels and Motels industry has underperformed the S&P 500, with a decline of 9.4% over the past year, while the industry's valuation remains lower than the S&P 500 average, indicating a lack of investor confidence.
Stocks to Watch: Notable companies in the industry include Marriott, Hilton, and Choice Hotels, each showing potential for growth through digital transformation, unit expansion, and strategic investments, despite varying stock performance over the past year.
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Analyst Views on HLT
Wall Street analysts forecast HLT stock price to fall
18 Analyst Rating
11 Buy
7 Hold
0 Sell
Moderate Buy
Current: 315.390
Low
253.00
Averages
292.37
High
340.00
Current: 315.390
Low
253.00
Averages
292.37
High
340.00
About HLT
Hilton Worldwide Holdings Inc is a global hospitality company, which is engaged in managing, franchising and leasing hotels and resorts, and licensing its intellectual property (IP), including brand names, trademarks and service marks. The Company operates through two segments, which include management and franchise and ownership. The management and franchise segment includes all the hotels it manages for third-party owners, as well as all properties that license its intellectual property (IP), and/or use its booking channels and related programs, and where it provides other contracted services. The ownership segment includes nightly hotel room sales, food and beverage sales and other services at its consolidated hotels. It also includes approximately 46 hotels consisting of 15,287 total rooms. Its brands include Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, LXR Hotels & Resorts, NoMad, Signia by Hilton, Canopy by Hilton, Hilton Hotels & Resorts and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Beat: Expedia reported an adjusted profit of $1.96 per share for Q1, surpassing analysts' expectations of $1.38, demonstrating strong profitability amid robust international travel demand.
- Significant Revenue Growth: Q1 revenue rose approximately 15% year-over-year to $3.43 billion, exceeding market expectations of $3.35 billion, indicating stronger performance in global markets compared to the U.S.
- Impact of Conflict on Bookings: Although the Middle East conflict negatively affected bookings, resulting in a two-point decline in gross bookings and room nights, cancellations have subsided in April, indicating potential market recovery.
- Strong Advertising Performance: The company's advertising and media segment grew by 15% in Q1, with Trivago achieving a remarkable 47% revenue growth, further enhancing the overall revenue structure of the company.
See More
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Company Announcement: Hilton Worldwide Holdings has announced a $1 billion offering of senior notes.
Interest Rate Details: The senior notes will have an interest rate of 5.500% and are due in 2031.
See More
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- Financing Plan: Hilton Domestic Operating Company intends to offer $1 billion in senior notes, with plans to use $450 million of the proceeds to repay borrowings under its senior secured revolving credit facility, thereby alleviating financial burdens and optimizing capital structure.
- Use of Proceeds: The net proceeds from this offering will be allocated to debt repayment and general corporate purposes, demonstrating the company's flexibility and strategic approach to financial management.
- Future Outlook: Hilton anticipates a 2%-3% growth in revenue per available room (RevPAR) by 2026, despite headwinds in the Middle East, reflecting the company's confidence in market recovery.
- Shareholder Returns: Hilton plans to return $3.5 billion to shareholders over the coming years, indicating a commitment to shareholder value while pursuing sustained growth, thereby enhancing investor confidence.
See More
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- Company Announcement: Hilton Worldwide Holdings has announced a senior notes offering amounting to $1 billion.
- Maturity Date: The senior notes are set to mature in 2031.
See More
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- World Cup Outlook Dim: Despite Marriott International (MAR) and Hilton (HLT) rising approximately 14.5% and 9% this year, respectively, hotel demand in U.S. host cities is underwhelming, raising concerns about the upcoming 2026 FIFA World Cup.
- Marriott's Optimistic Forecast: Marriott is set to report its Q1 earnings on Wednesday, with CEO Anthony Capuano stating that the World Cup is expected to contribute 30-35 basis points to global RevPAR growth, although market sentiment remains cautious regarding this outlook.
- Hilton's Silence: Hilton's recent earnings report notably omitted any mention of the World Cup, with CEO Chris Nassetta admitting that the demand
See More
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- Security Vulnerability Exposed: During the White House Correspondents' Association dinner, suspect Cole Allen breached security at the Washington Hilton, highlighting significant vulnerabilities in hotel security during major events; although Trump and attendees were unharmed, the incident raised widespread concerns about hotel security measures.
- Need for Technological Upgrades: Experts emphasize the hotel industry's challenge of balancing enhanced security with guest comfort, noting that while some emerging security firms offer AI monitoring solutions, hotels have been slow to adopt new technologies due to cost and privacy concerns.
- Industry Reflection and Improvement: The incident has prompted the hotel sector to reassess security strategies; despite Hilton's claims of adhering to stringent Secret Service protocols, Trump's skepticism about the hotel's security indicates a need for deeper reforms in industry practices.
- Budget vs. Security Dilemma: Hotels often face budget constraints when addressing security upgrades, with experts noting that many allocate resources toward external threats while underestimating risks posed by registered guests, a complacency that could lead to severe consequences.
See More
