If you are searching for an investment opportunity that can offer higher returns and is as stable as real estate, consider investing in hotel stocks. Over the last few years, the hotel industry has shown remarkable growth with the rise of tourism and travel industry. Therefore, hotel stocks look like a profitable sector for investing in 2024.
If you want to learn more about this investing opportunity, stay here. Today, we will tell you more about the top stocks and the advantages of investing in hotel stocks.
What Are The Top Hotel Stocks To Buy?
When investing in hotel stocks, it is always better to do market research and choose the best options. To help you in finding the best hotel stocks, we have mentioned below some of the top hotel stocks to invest in 2024:
Hilton Worldwide Holdings Inc.
HLT is an American global company with a massive portfolio of elite establishments and hotels. There are 18 brands of Hilton Worldwide Holdings, which are working in several market sectors. Besides that, its franchised outlets are working in more than 18 countries, making HLT a leader in the hotel industry. The company's revenue grew by one-third during the first quarter of 2023. The total revenue in 2020 was $4.31 billion, and EPS decreased from $3.04 (FY 2019) to $-2.56 (FY 2020).
Compared to the NYSE composite, the stock return of Hilton increased by 126% from 2009 to 2019. The one-year price forecast suggests a median of 123.50 with an estimated 100 (low) and 140 (high). So, investors can trust that the company's management will show a remarkable performance for stocks and find this period a good investment time.
MGM Resorts International
MGM Resorts International is an American multinational corporation that specializes in hospitality. The group has 29 hotels, including the Park MGM, Mandalay Bay, MGM Grand, and The Bellagio. Besides that, the company also operates regional vacation resorts in different places, including Mississippi, Detroit, Massachusetts, New Jersey, and Las Vegas. The company has shown remarkable growth in Asia.
In 2020, the company's net revenue for the Las Vegas Strip resorts was $2.2 billion, and MGM Resorts International earned $2 billion for the regional operations. The same year, MGM China earned more than $657 billion in revenue. The company has returned 115% higher over the last ten years (2009 to 2019) as compared to the NYSE composite during the same time. Analysts suggesting the one-year price forecasts for the company have estimated a median target of 37.75 with a low estimate of 28.00 and a high estimate of 50.00.
Intercontinental Hotels & Resorts
It is a British hospitality company operating global hotel chains, including the Holiday Inn, Crowne Plaza, and Regent. The company has 6000 hotels in the USA, the Middle East, China, Australasia, and Europe. Currently, 880,000 rooms are open, while 272,000 more are in the pipeline. In 2020, the company generated more than $992 million in revenue. The 2020 EPS for the stock decreased up to 168.31% from 2019. However, the company has returned 120% higher than the NYSE composite in ten years (2009 to 2019). The one-year price estimated a median target of 63.29, with a low estimate of 50.07 and a high estimate of 78.23.
Marriott International, Inc.
Marriott International is popular at the international level. It is an American global hotel group with 7600 properties in 131 countries and 30 brands. The basic purpose of this company is management, operation, hotel, timeshare properties, and residential franchise. The company generated more than $10.5 billion in revenue in 2020. Meanwhile, the annual EPS decreased from $1.16 (2019 fiscal year) to $0.31. Within ten years (from 2009 to 2019), the company has returned 10% higher in comparison to the NASDAQ composite and 44% higher than the Dow Jones Large Cap. The one-year price forecasts for Marriott International Inc. have a median target of 135.00, with 119.00 as a low estimate and 175.00 as a higher estimate. If you plan to invest in hotel stocks, Marriott International is better.
Hyatt Hotels Crop
It is an American franchise of luxury hotels, resorts, and vacation establishments working internationally. The company specializes in group meetings and business travel and targets the upscale consumer segments. The headquarters of the company are working in Chicago. It has 20 brands, 975 hotels, and wellness resorts in more than 69 countries and six continents. In 2020, the annual EPS was -$6.93, while the revenue for the same year was more than $2 billion. From 1009 to 2019, as compared to the NYSE composite, the company returned 28% higher. As per the price forecast of stocks for one year, the median target of the company is 72.00 with an estimate of low 55 and a high estimate of 95.00. The estimated median shows a decrease of -14.11% from the last price (83.83).
Is It Good To Invest In Hotel Stocks?
The hotel industry is an integral part of the global economy. Also, it greatly impacts the tourism and hospitality sector stocks. So, the demand for hotels has increased with a rise in travel. Therefore, the hotel stocks have become a lucrative investment option for the investors.
By investing in the hotel stocks, you can also diversify your investment portfolio. Besides that, it is also an effective way to capitalize on the growth possibilities of the hotel sector stocks. In addition, as the hotel stocks have a global presence, you can get exposure to the international market. Therefore, in this way, investors can also diversify their investments across different geographies. Thus, eventually, it can maximize the chances of returns and reduce the risk. So, yes, investing in hotel stocks will be a great idea!
Conclusion:
When investors think of property investments, hotels always come to mind. Though many other lucrative forms of property investments, including multi-family buildings, are available, they require long-term commitments. Also, the possibility of fluctuations and other risks always remain there. In that scenario, the investors looking for short-term investments prefer investing in hotel stocks. If you also plan to invest in hotel stocks, invest in MGM Resorts International. Besides that, Hyatt Hotels Crop, Hilton Worldwide Holdings Inc., Marriott International, Inc., and Intercontinental Hotels & Resorts are the other top hotel stocks to invest in.
