Hilton Shares Drop After Minneapolis Hotel Cancels Booking Over Immigration Enforcement

• DHS alleged a Minneapolis Hilton property cancelled reservations for immigration officers using government credit cards, sharing screengrabs of messages stating 'we are not allowing any immigration agents to house on our property'
• Hilton responded that most of its 9,000+ properties are independently operated by franchisees, and the company is investigating the matter with the individual hotel
• The incident coincides with a major federal investigation in Minnesota involving roughly 2,000 DHS agents examining potential Medicaid fraud totaling approximately $9 billion since 2018

Summary

Hilton shares declined Monday after the Department of Homeland Security publicly criticized the hotel chain on social media for a cancelled reservation at a Minneapolis property. DHS alleged that officers had their booking abruptly cancelled due to their immigration enforcement work, stating the hotel refused to serve DHS law enforcement personnel attempting to book rooms using official government credentials.

Key Details:

• The specific Minneapolis Hilton location was not disclosed by DHS
• DHS included screengrabs of apparent email exchanges showing hotel staff stating they would not allow immigration agents to stay on the property
• Hilton responded that the hotel is independently owned and operated, with actions "not reflective of Hilton values"
• Most of Hilton's 9,000+ affiliated properties are franchisee-operated

Background Context:

The incident occurred amid a major DHS operation in Minneapolis investigating suspected fraud. A federal prosecutor indicated approximately $9 billion or more paid through Minnesota Medicaid programs since 2018 may have been fraudulently obtained. CBS News reported the Trump administration deployed roughly 2,000 agents and officers from ICE and Homeland Security Investigations to the Twin Cities area.

Market Implications:

The public controversy creates reputational risk for Hilton, though the company's franchise model may limit direct operational control. The incident highlights potential business risks for hospitality companies navigating politically sensitive government contracts during heightened immigration enforcement activities. Investor concerns likely center on brand damage and possible broader boycott campaigns affecting the hotel chain's operations and revenue.