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. Shares rose more than 1% intra-day following the upgrade.

The analyst said Hilton was well positioned to benefit from continued strength among higher-end consumers and international travelers, as well as Goldman Sachs economists' constructive growth outlook for 2026, particularly for middle-income consumers.

Goldman highlighted Hilton's industry-leading development pipeline, measured as a percentage of existing room count, and said the company should be able to sustain its current level of net unit growth despite macroeconomic volatility. The firm pointed to Hilton's global RevPAR premium and growing focus on conversions as key supports for future growth.

In addition, Goldman described Hilton's capital return profile as compelling, forecasting roughly $11 billion in share repurchases over the next four years, equivalent to about 20% of the company's market capitalization. This was expected to drive a free-cash-flow-per-share compound annual growth rate of approximately 15%, while maintaining a solid balance sheet.