Hilton Stock Edges Up After DHS Reservation Row

Hilton stock rose after the company removed a franchised Hampton Inn that canceled reservations for Department of Homeland Security (DHS) agents on January 2, 2026. Hilton said on January 6 it had removed the operator, which apologized for the incident.

Hampton Inn Lakeville Cancellations

On January 2, 2026, around 12:45 p.m. ET, the Hampton Inn Lakeville, a Hilton-branded hotel near Minneapolis operated by Everpeak Hospitality under a franchise, canceled reservations for DHS and Immigration and Customs Enforcement (ICE) agents. Screenshots showed an email from hotel staff stating they would not accept ICE or immigration agents due to an influx of government bookings. A follow-up message from hotel leadership reiterated the refusal, leading to the cancellations.

Everpeak Hospitality apologized, saying it acted swiftly to address the issue and was contacting affected guests to ensure accommodations. The company stated it does not discriminate against any individuals or agencies and committed to operating according to brand standards and applicable laws.

Hilton Response and Market Reaction

On January 6, DHS posted on X (formerly Twitter) accusing Hilton of a "coordinated campaign" to refuse service to DHS law enforcement, claiming officers’ government bookings were canceled. DHS did not provide evidence of coordination when asked.

Hilton said the property is independently owned and operated and that the actions did not reflect Hilton’s values. The company confirmed it had been in direct contact with the hotel operator, which apologized and took immediate steps to resolve the matter. Hilton announced the removal of the operator from its system on January 6 and said it was ensuring impacted guests were accommodated.

Hilton’s shares initially fell about 2.5% on the afternoon of January 6 but recovered to a 0.6% gain at the next market open and were up 2.0% by 6 p.m. ET. Available reports did not establish a direct link between the stock moves and the hotel incident.

The cancellations occurred amid a larger DHS deployment to the Minneapolis area, where up to 2,000 agents, including ICE and Homeland Security Investigations personnel, were sent for fraud and immigration investigations. This operation, called Operation Metro Surge, followed viral and disputed allegations about Somali-run childcare centers.

Hilton and other lodging companies have faced similar reputational challenges before. In 2020, Hilton stated it did not support detaining immigrants after controversy over a franchisee’s handling of ICE contractor bookings. Motel 6 settled a class-action lawsuit for $7.6 million in 2018 after some locations provided guest lists to immigration agents. In late 2025, a Sheraton franchisee in Louisiana drew scrutiny for renting rooms to DHS personnel in a way described as violating brand standards.

This sequence of a local cancellation, a public DHS allegation, and Hilton’s swift removal of the operator highlights the reputational risks franchised hotel models can pose to parent brands and how such episodes can trigger rapid market reactions.