Deutsche Bank analyst Carlo Santarelli attributes the 2017 rally in Lodging stocks to a combination of favorable sector rotation, optimism around tax reform, new branded credit card deals and an acceleration in the return of capital. With the cycle one year closer to a natural conclusion and tax reform is complete, the analyst believes sector rotation is more likely to be a headwind than a tailwind in 2018. As such, he's taking a neutral approach to the group heading into 2018, while continuing to favor Hilton (HLT). Santarelli raised his price target for the Hilton to $90 from $79, for Choice Hotels (CHH) to $80 from $74, for Hyatt (H) to $78 from $72 and for Marriott (MAR) to $136 from $124.

Barclays raised the firm's price target on Marriott to $240 from $239 and keeps an Equal Weight rating on the shares as part of a Q1 lodging sector preview. The firm says the Easter shift dragged down March, making Q1 RevPAR beats less than likely. However, the analyst still expects more or less in-line EBITDA for the large caps.

Barclays lowered the firm's price target on Choice Hotels to $114 from $122 and keeps an Underweight rating on the shares as part of a Q1 lodging sector preview. The firm says the Easter shift dragged down March, making Q1 RevPAR beats less than likely. However, the analyst still expects more or less in-line EBITDA for the large caps.