** Morgan Stanley cuts price targets on stocks of hotel chains Hyatt Hotels H.N, Hilton Worldwide HLT.N, Wyndham Hotels & Resorts WH.N and Choice Hotels International CHH.N

** Brokerage says hotel companies struck a more cautious 2026 demand outlook at the American Lodging Investment Summit, though their guidance largely aligned with already-lowered expectations

** Adds revenue per available room (RevPAR) is projected to grow at low single digits, with stronger trends in APAC, group and business travel

** Says China and leisure demand remain softer; expects hotels companies to benefit from the World Cup in the summer

** Dow Jones U.S. Hotels Index .DJUSLG marginally down in morning trading