Best hotel stocks to buy in 2023
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This page offers an expert selection of the best hotel stocks to invest in on the back of the pandemic. The hotel industry has traditionally proven to be lucrative for investors and institutional investors have invested a lot of smart money into hotel stocks.
What are the top hotel stocks to buy?
Our analysts have selected five of the top hotel stocks for this year as listed in the table below. To discover more about each in turn, continue scrolling through the page.
| # | Stock ticker | Company name | Trade now |
|---|---|---|---|
| 1 | MGM | MGM Resorts International | |
| 2 | MAR | Marriott International, Inc. | |
| 3 | HLT | Hilton Worldwide Holdings Inc. | |
| 4 | H | Hyatt | |
| 5 | TNL | Travel & Leisure Co. |
1. MGM Resorts International (NYSE: MGM)
MGM is an American multinational corporation specialising in global hospitality and mega entertainment. The group owns and manages prestigious hotels like Mandalay Bay, The Bellagio, Park MGM, MGM Grand, etc. It also operates regional vacation resorts in Detroit; New Jersey; Massachusetts; Las Vegas; and Mississippi.
The pandemic slashed revenues across MGM properties. However, global vaccination and lifting of travel restrictions has seen MGM make a surging comeback as the company’s properties rebounded much more than could be expected by analysts across the board.
There is also a keen institutional investor in the stock; smart money is often a good indicator of a company’s potential and the volume of money helps to keep a stock price stable. Investors can look forward to a strong value growth stock with plenty of upside potential as the hotel industry rebounds in post-pandemic recovery.
2. Marriott International, Inc. (NASDAQ: MAR)
MAR is a widely popular American global hotel group consisting of 30 brands and 7600 properties across 131 countries. The company’s main functions are the operation, management, and franchise of residential, hotel, and timeshare properties.
Also hard-hit by the pandemic, company revenue has rebounded with people beginning to travel again. New investors must note that the stock price continues to fluctuate in tandem with the ever tightening and loosening of global pandemic restrictions.
It is reassuring however that the company has a widely respected global presence. It is expected that Marriott’s share price outperforms estimates in the run-up to full pandemic recovery.
Find out how to invest in Marriott’s stocks in our guide here.
3. Hilton Worldwide Holdings Inc. (NYSE: HLT)
HLT is an American global conglomerate that owns a massive portfolio of hotels and elite establishments. With an extensive 18 brands spread across various market sectors and its self-owned and franchised-outlets spread across 118 countries, HLT is a leading giant in the hotel industry.
The company suffered a devastating blow from the pandemic. As revenues slumped, investors were dismayed by the decision to halt dividend payouts. However, with the cash crunch somewhat managed, the current share price is a good time to get in and hold on while global travel rebounds and brings back the hotel industry.
Investors also trust the company’s management to deliver a good performance for the stock. A classic hotel group and a household brand name, HLT is expecting a strong rebound in the post-pandemic market.
4. Hyatt (NYSE: H)
Hyatt is an American global franchise of luxury vacation establishments, resorts, and hotels. The group targets the most upscale consumer segments of the market, specialising in group meetings and business travel.
The heavy skew towards a super niche consumer base and a narrow portfolio proved to be a disaster during global lockdowns. Hyatt’s reliance on business and inessential travel meant that it was harder hit by the pandemic than its competitors.
Investors hope that the current management expansion strategy and established worldwide reputation restabilises the price floor for the stock. The company maintains a strong foothold for the return from the pandemic.
5. Travel & Leisure Co. (NYSE: TNL)
Uniquely in this selection, TNL is an American timeshare company. TNL builds, manages, and sells timeshare properties in established ownership clubs across regional America. Its core businesses include Wyndham Destinations, the world’s largest global vacation ownership business.
The stock is reliable as investors are offered $1.20 per share in annual dividend payout. Furthermore, as the global economy bounces back, TNL’s near-monopoly of the timeshare segment of the industry could prove particularly lucrative for investors.
Like its competitors, TNL also felt the backlash of the pandemic in losses of revenue. However, with a standout business model offering timeshares in an industry heavily dominated by classic hotels, TNL is attractive to its target consumer base. The company is expected to make a strong comeback on the back of the pandemic.
Where to buy the best hotel stocks
To invest in hotel stocks, you will need to enrol with an online brokerage. You can scroll further to learn more about hotel stocks and the industry. Otherwise, the table below illustrates our top picks for brokers and should get you started with good speed.
What is a hotel stock?
The hotel industry comprises companies that focus on the provision of both short-term and long-term lodging and accommodation-related services. Some classic examples are the Hilton, Hyatt, Marriott, etc.
Are hotel stocks a good investment?
Yes they are with one eye kept open for ongoing pandemic restrictions. COVID-19 wreaked financial havoc on the entire travel and hospitality industry. Global government lockdowns; unvaccinated tourists; and fluctuating travel restrictions had adverse effects on the industry. Symbiotically, the hotel industry was among the hardest hit as a result of the pandemic.
Therefore, investors must have a long-term view when considering hotel stocks in the current climate. Recovery shall be slow but a return to pre-pandemic revenue generation is expected in the next few years. The main drive behind the industry’s full comeback is the pace of the global vaccine rollout.
The industry has not lost its institutional investor interest – smart money is still heavily invested in hotel stocks. As travel restrictions continue to be lifted and halted vacation plans materialise, the hotel industry could be a lucrative investment on the back of the pandemic.
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