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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for HLT is 292.37 USD with a low forecast of 253.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
11 Buy
7 Hold
0 Sell
Moderate Buy
Current: 308.720
Low
253.00
Averages
292.37
High
340.00
Current: 308.720
Low
253.00
Averages
292.37
High
340.00
About HLT
Hilton Worldwide Holdings Inc. is a global hospitality company that is engaged in managing, franchising, owning and leasing hotels and resorts, and licensing its intellectual property, including brand names, trademarks and service marks. It has a portfolio of over 24 brands comprising more than 8,400 properties and more than 1.25 million rooms in 140 countries and territories. It has two segments: management and franchise and ownership. The management and franchise segment includes all the hotels it manages for third-party owners, as well as all franchised hotels that license its intellectual property (IP), and/or use its booking channels and related programs, and where it provides other contracted services to third-party owners. The ownership segment includes nightly hotel room sales, food and beverage sales and other services at its consolidated owned and leased hotels. Its brands include Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad 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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- Expansion in China: With over 1,400 hotels in Greater China and plans for further openings across more than 200 cities, InterContinental aims to capitalize on the travel demands of a young consumer class, thereby enhancing its market share in a key growth region.
- Technological Innovation: The appointment of Wei Manfredi as AI executive is set to drive the company's AI strategy, optimizing IT architecture and operational efficiency, with expectations that AI applications will improve customer experiences and increase repeat business.
- Luxury Market Focus: The new regional chief development officer, Mark Sergot, will prioritize luxury and premium properties, aiming to enhance InterContinental's competitiveness in the Americas market against established players like Marriott and Hilton, which could lead to improved market positioning.
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- Enhanced Market Competitiveness: Through continuous expansion, Hilton not only increases its market share but also enhances brand influence, further solidifying its leadership position in the global hotel industry.
- Strategic Investment Signal: This expansion aligns with Hilton's long-term growth strategy, demonstrating confidence in future travel and accommodation demand, which is expected to yield substantial returns for shareholders.
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- Super Bowl Event: This Sunday, the Patriots will face the Seahawks in Super Bowl LX, expected to attract a large audience and boost related advertising revenues, further solidifying the significance of sporting events in the market.
- Earnings Season Arrives: Companies like Coinbase, Ford, McDonald's, and Moderna will report earnings next week, with analysts focusing on McDonald's same-store sales, which are expected to rise due to promotional activities, reflecting consumer demand for value products.
- Economic Data Release: The delayed January jobs report will be released on Wednesday, with economists forecasting the addition of 70,000 jobs in the U.S., providing the market with the latest dynamics on the labor market.
- Inflation Indicator Focus: The Consumer Price Index (CPI) will be released on Friday, with the market closely monitoring this key indicator's impact on future economic outlook and Federal Reserve policy, potentially influencing interest rate decisions.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
InterContinental Hotels Group's Recovery and Expansion Strategy
- Market Recovery: InterContinental Hotels Group has rapidly bounced back from the 2020 pandemic crisis, planning to open over 1,400 hotels across more than 200 cities in Greater China, demonstrating its strong expansion intent in fast-growing markets.
- Technological Innovation: The company appointed Wei Manfredi as its AI executive, aiming to optimize IT architecture and enhance operational efficiency through AI technology, thereby improving customer experience and driving repeat business.
- Brand Strategy: InterContinental is focused on expanding the global presence of its Holiday Inn brand, particularly in the Chinese market, with plans to broaden its footprint beyond tier-1 cities to meet the diverse needs of younger consumers.
- Competitive Advantage: New regional chief development officer Mark Sergot will drive the development of more luxury and premium properties, helping InterContinental enhance its market position against Marriott and Hilton, thereby increasing its appeal in the Americas market.
See More
InterContinental Hotels' Recovery and Expansion Strategy
- Market Recovery: InterContinental Hotels has rebounded sharply post-COVID-19, demonstrating market adaptability and brand resilience despite strong growth from competitors like Marriott and Hilton, indicating a positive outlook for future performance.
- Expansion in China: With over 1,400 hotels in Greater China and plans for further openings across more than 200 cities, InterContinental aims to capitalize on the travel demands of a young consumer class, thereby enhancing its market share in a key growth region.
- Technological Innovation: The appointment of Wei Manfredi as AI executive is set to drive the company's AI strategy, optimizing IT architecture and operational efficiency, with expectations that AI applications will improve customer experiences and increase repeat business.
- Luxury Market Focus: The new regional chief development officer, Mark Sergot, will prioritize luxury and premium properties, aiming to enhance InterContinental's competitiveness in the Americas market against established players like Marriott and Hilton, which could lead to improved market positioning.
See More
Hilton Expands Global Portfolio with 800 New Hotels
- Hotel Growth: Hilton added nearly 800 hotels and 100,000 new rooms globally, achieving a 6.7% net unit growth for the year, indicating strong expansion momentum in the global market.
- New Room Construction: The company plans to start construction on nearly 100,000 new rooms in 2025, marking the highest number of organic starts in a single year, reflecting its positive outlook on future market demand.
- Enhanced Market Competitiveness: Through continuous expansion, Hilton not only increases its market share but also enhances brand influence, further solidifying its leadership position in the global hotel industry.
- Strategic Investment Signal: This expansion aligns with Hilton's long-term growth strategy, demonstrating confidence in future travel and accommodation demand, which is expected to yield substantial returns for shareholders.
See More
Winter Storm Fern Disrupts U.S. Industries, Over 10,000 Flights Canceled
- Flight Cancellations: Over 10,000 flights were canceled on Sunday due to Winter Storm Fern, prompting Delta Air Lines and American Airlines to adjust staffing and aircraft positioning, highlighting significant operational challenges faced by the airline industry.
- Energy Production Decline: U.S. crude oil production is expected to drop by approximately 300,000 barrels per day, with the Permian Basin potentially losing 200,000 barrels, leading to price volatility in energy markets and impacting overall economic stability.
- Retail Sector Risks: As icy conditions worsen, retailers and restaurants reliant on weekend foot traffic face sales pressure, with companies like Walmart and Kroger at risk of Q4 earnings declines due to potential inventory spoilage from extended outages.
- Utility Response: Utilities such as Entergy and Dominion have activated storm response teams to address potential outages and infrastructure damage, demonstrating a strong commitment to consumer service amid challenging weather conditions.
See More
