As previously reported, Baird analyst Michael Bellisario downgraded Choice Hotels (CHH) to Neutral from Outperform with a price target of $103, up from $102, and downgraded Extended Stay America (STAY) to Neutral from Outperform with a price target of $16, down from $17, as part of his broader note downgrading his sector allocation for the Hotel Brands to Market Weight. He notes valuation multiples for stocks in the space are at or near cycle highs, he expects continued lackluster RevPAR growth, he believes buybacks are less accretive at current levels, and points to concerns about recent insider sales. On Choice in particular, Bellisario expects slower RevPAR growth to continue within the mid-scale and economy chains and thinks share repurchase activity will likely be curtailed at current valuation levels. On Extended Stay, Bellisario believes realizing upside has become more contingent upon a potential sale of the company, which he does not expect in the near-term. His top pick in the Hotel Brands space continues to be Wyndham Hotels & Resorts (WH), the analyst added.