Goldman Sachs Upgrades Hilton to Buy on International Growth and Capital Returns

Core Viewpoint - Goldman Sachs upgraded Hilton Worldwide (NYSE:HLT) to Buy from Neutral and raised its price target to $317, citing favorable demand trends and strong capital return potential [1] Group 1: Demand Trends and Market Position - Hilton is well positioned to benefit from continued strength among higher-end consumers and international travelers [1] - Goldman Sachs economists have a constructive growth outlook for 2026, particularly for middle-income consumers [1] Group 2: Development Pipeline and Growth Potential - Hilton has an industry-leading development pipeline, measured as a percentage of existing room count [2] - The company is expected to sustain its current level of net unit growth despite macroeconomic volatility [2] - Hilton's global RevPAR premium and growing focus on conversions are key supports for future growth [2] Group 3: Capital Return Profile - Goldman Sachs forecasts roughly $11 billion in share repurchases over the next four years, equivalent to about 20% of the company's market capitalization [3] - This capital return is expected to drive a free-cash-flow-per-share compound annual growth rate of approximately 15% [3] - Hilton is anticipated to maintain a solid balance sheet while executing its capital return strategy [3]