Research by Freedom Broker has attracted attention from Barron’s, highlighting investment opportunities in the US hospitality industry. The analysis examines the growth strategies of major hotel chains, constraints on new construction and the factors shaping the sector’s long-term prospects.
Freedom Broker identifies opportunities across five hotel chains
The US financial publication Barron’s featured an analysis of the American hotel industry prepared by Manucher Narzulloev, an analyst at Freedom Broker, the brokerage business within Freedom Holding Corp. The research assesses five publicly traded hotel groups and identifies potential investment opportunities as the sector adjusts to changing market conditions.
Freedom Broker initiated coverage of Marriott International, Hilton, Hyatt Hotels, Wyndham Hotels & Resorts and Choice Hotels International. The analysts assigned buy ratings to the first four companies, while recommending a hold position on Choice Hotels, citing its comparatively slower growth against competitors in the premium segment.
The assessment suggests that the hospitality market has moved beyond the exceptional expansion that followed the pandemic. Nevertheless, the operating environment remains supportive of established hotel operators, whose existing networks and brands provide advantages in a market where building new properties has become increasingly expensive.
The research projects that hotel room supply in the US will increase by just 0.4% in 2026 and 0.6% in 2027. Elevated interest rates and construction costs have made new developments more difficult to finance, limiting the pace at which additional capacity enters the market.
This environment puts greater emphasis on the ability of established chains to expand without undertaking the full cost of developing new hotels. Instead of relying exclusively on new construction, operators are increasingly incorporating existing properties into their networks through conversions and rebranding.
The figures cited by Barron’s show that converted properties accounted for 40% of Marriott’s new hotel additions during the first half of 2026. At Hilton, conversions represented 36% of additions in the second quarter. These figures illustrate how established operators can increase their footprint while making use of buildings that are already in operation.
Marriott, Hilton and Hyatt: different growth strategies
Among the companies covered, Marriott International stands out for its diversified sources of revenue. In addition to income associated with hotel operations, the group benefits from its Marriott Bonvoy loyalty programme, co-branded credit cards and licensing arrangements. This business model supports earnings growth without requiring the company to own the underlying real estate across its entire network.
Freedom Broker set a $408 price target for Marriott shares, reflecting its assessment of the company’s prospects.
Hilton has demonstrated stronger expansion momentum. Its hotel portfolio grew by 6.1% in the second quarter of 2026, according to the research covered by Barron’s. Nearly half of the properties in its development pipeline were already under construction.
Freedom Broker assigned Hilton a $359 price target. Its expansion pipeline and ability to add properties through different development models form part of the investment case presented by the analysts.
Hyatt Hotels, by contrast, has experienced slower growth. Its expansion rate stood at 1.6% in 2026, with weaker travel demand in Mexico identified as one of the factors weighing on its performance.
Despite these challenges, Freedom Broker sees potential in Hyatt over a longer investment horizon. The company’s relatively limited direct ownership of real estate and its pipeline of planned hotel openings are among the factors underpinning the analysts’ assessment. The brokerage set a $192 price target for Hyatt shares.
The ratings reflect different business profiles rather than a uniform outlook for the entire industry. Marriott’s loyalty and licensing operations, Hilton’s expansion pace and Hyatt’s development pipeline offer distinct ways to assess growth potential in the hospitality market.
The price targets represent Freedom Broker’s analytical estimates, not guaranteed future share prices. Actual performance will depend on operating results, travel demand, financing conditions and broader market developments.
Why supply constraints matter for the hospitality industry
The research highlights a structural feature of the US hotel market: expanding an established brand has become increasingly dependent on the availability of existing properties and the economics of converting them.
High construction expenses and borrowing costs create barriers for new projects. For hotel groups with established brands and distribution networks, converting an existing building can offer an alternative to developing a property from the ground up. Marriott’s and Hilton’s recent conversion figures demonstrate the significance of this approach to their expansion strategies.
The broader economic outlook remains an important variable. Travel demand is sensitive to consumer spending, inflation and business confidence, while higher financing costs can affect both developers and operators. Business travel also remains an important contributor to the US economy, supporting demand for accommodation and related services.
Against this backdrop, the investment case for established hotel chains rests partly on their ability to generate revenue from existing networks, expand selectively and maintain brand recognition without proportionately increasing their exposure to real estate ownership.
For investors, the distinction between individual operators matters. A company’s development pipeline, revenue mix and expansion model can influence its ability to navigate a slower-growth environment. Freedom Broker’s analysis examines these differences to identify opportunities within a sector that is no longer benefiting from the extraordinary post-pandemic rebound.
Freedom Holding Corp. develops its international research business
The coverage in Barron’s also highlights the international reach of the analytical operations associated with Freedom Holding Corp. The holding company’s research business serves investors by producing analysis of equities, fixed-income securities and macroeconomic developments, alongside the development of tools incorporating artificial intelligence.
The research division is led by Vadim Merkulov, head of Capital Markets Research and Educational Initiatives. He joined the investment group in 2017 and oversees a team of more than 70 specialists working across six countries.
Freedom Broker distributes its research through major financial information platforms, including Bloomberg, FactSet, London Stock Exchange Group (LSEG) and S&P Capital IQ. Access to these channels allows the company’s analysis to reach a broader international audience of market participants.
The appearance of Narzulloev’s work in Barron’s provides an example of how the brokerage’s research can gain visibility beyond its core markets. The coverage connects the company’s analytical capabilities with investment questions relevant to participants in the US equity market.
Freedom Holding Corp. is a US-incorporated international financial holding company headquartered in Almaty, Kazakhstan. Its common shares trade on Nasdaq under the ticker FRHC. The group operates across brokerage, banking, insurance and other financial services.
Its Kazakhstani businesses include Freedom Bank, Freedom Broker, Freedom Insurance and Freedom Life. In June 2026, the holding company announced a transition towards a unified Freedom brand, bringing its business lines under a common identity.
Freedom Holding Corp. was founded by Timur Turlov, who serves as its chief executive officer and chairman of the board of directors and is its majority shareholder. Its brokerage and research operations form part of a broader financial services business with an international presence.
Featured images via Freedom Holding Corp.
