Goldman Sachs recommends Choice Hotels, cuts Hyatt amid weaker US lodging outlook
Investing.com --Goldman Sachs has a dour outlook on U.S. lodging companies, citing weakening consumer demand, geopolitical uncertainty, and a negative read-across from U.S. airlines. In turn, Goldman is shifting its stock preferences, favoring asset-light operators with global diversity and less exposure to U.S. resort markets and incentive management fees. The firm upgraded Choice Hotels (NYSE:CHH) from Sell to Buy, while Hyatt was downgraded from Neutral to Sell. Marriott and Hilton were both cut to Neutral, while Wyndham remains a Buy. Lodging stocks have underperformed in recent months, with Hyatt down 32%, Marriott off 27%, and Hilton falling 21%, compared to a 13% decline in the S&P 500. Airline warnings on domestic demand, alongside weaker foreign arrivals after new tariff announcements, add to pressure on the sector.