Bernstein analyst David Beckel downgraded Hilton (HLT) to Market Perform from Outperform, telling investors that Hilton's current valuation fairly reflects his expectation of an environment in which U.S. RevPAR and unit growth decelerate over the next 12 months, potentially faster than currently forecast. He expects a combination of slowing growth and a lack of catalysts will limit upside for both Hilton and Market Perform-rated Marriott (MAR) during that time.

Reports Q1 revenue $2.573, consensus $2.55B. Q1 system-wide comparable RevPAR increased 2.0%, on a currency neutral basis, compared to the same period in 2023. Christopher J. Nassetta, President & CEO, said, "We are pleased to report a strong first quarter with bottom line results meaningfully exceeding our expectations, further demonstrating the power of our resilient, fee-based business model and strong development story. During the first quarter, system-wide RevPAR increased 2.0 percent as renovations, inclement weather and unfavorable holiday shifts weighed on performance more than anticipated. On the development side, we continued to see great momentum across signings, starts and openings. As a result of our record pipeline and the growth pace we've seen to-date, we expect net unit growth of 6.0%-6.5% for the full year, excluding the planned acquisition of the Graduate Hotels brand."

Mizuho lowered the firm's price target on Marriott to $260 from $263 and keeps a Neutral rating on the shares. The analyst cites a more conservative view on RevPAR ahead of the Q1 report for the target drop. RevPAR trends have been slightly weaker than previously modeled, primarily in the United States, the analyst tells investors in a research note.