This article will explore some of the best hotel stocks to buy in 2023, as well as advice on how to analyze them. As the global economy continues to recover from the Covid-19 pandemic, many investors are capitalizing on the rebound in travel. Hotel room rates continue to move higher and hotel stocks are one of the more attractive investments in 2023, as global travel picks up again.
What are Hotel Stocks?
Hotel stocks refer to stocks of companies that either own, manage or otherwise invest in hotels, resorts, or other lodging businesses. Hotel stocks typically focus on providing investors with high returns through ownership of these hospitality companies, though some stocks focus on providing services to these companies, such as development, management, or investment in hotels or lodging businesses.
How to Invest in Hotel Stocks?
Investors can purchase hotel stocks through a variety of methods, from traditional stocks and options to ETFs or other investment instruments. The most common way to invest in hotel stocks is through investing in stocks of public companies that own or manage hotels. Investors can also purchase hotel stocks through ETFs and other investment instruments.
The Best Hotel Stocks to Buy in 2023
Hyatt (H): Full-service hotels, select service hotels, resorts, and other properties, including timeshare, fractional ownership, residential, vacation, and condominium units, are all part of the portfolio of properties that Hyatt Hotels manages, franchises, licenses, owns, and leases. Among the brands it operates are Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination, Hyatt Regency, Hyatt, Thompson Hotels, Hyatt Centric, Joie de Vivre, Caption by Hyatt, Hyatt House, Hyatt Place, Hyatt Ziva, Hyatt Zilara, UrCove, Hyatt Residence Club, Hyatt Residences, It mainly caters to businesses, associations at the national, state, and regional levels, niche market clients like social, governmental, military, educational, religious, and fraternal organizations, travel agencies and luxury companies, as well as a select group of individual customers.
Hyatt saw its fourth-quarter revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... per available room (RevPAR), a key performance metric, grow by 34.8% from the same period in the prior year. It was even higher than pre-pandemic levels, up 2.4% versus the fourth quarter of 2019. On an annual basis, RevPAR rose 60.2% in 2022 compared with 2021, but was down 6.1% for the full year compared with 2019.
Marriott International (MAR): Marriott International, Inc. operates, franchises, and grants licenses for timeshare, residential, and hotel properties around the world. It manages its properties under the JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, and St. Regis, EDITION, Bulgari, Sheraton, Delta Hotels, Marriott Executive Apartments, Marriott Vacation Club, Westin, Renaissance, Le Meridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of February 15, 2022, it ran roughly 7,989 properties under 30 hotel brands in 139 nations and territories.
Marriott’s worldwide RevPAR grew 5% compared with 2019, driven by a 13% increase in the average daily rate. Marriott has a strong balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity., good management and numerous properties.
Wyndham (WYNN): Integrated resorts are created, built, and run by Wynn Resorts, Limited. The company’s Wynn Palace division runs private gaming lounges, sky casinos, a luxury hotel tower with suites and villas, a health club, spa, salon, and pool, as well as restaurants, shops, a performance lake, and floral art displays. The business’ Wynn Macau division runs a casino with private gaming salons, sky casinos, and a poker room. It also manages a luxury hotel tower with restaurants, bars, spas, salons, meeting rooms, and ceiling attractions inspired by Chinese zodiac signs. Its Las Vegas Operations division runs a casino with private gaming salons, a sky casino, a poker room, and a race and sports book. It also runs a luxury hotel tower with suites and villas, swimming pools, private cabanas, full-service spas and salons, and a wedding chapel, as well as food and beverage outlets, meeting and convention space, retail space, theaters, nightclubs, and a beach club. The business’s Encore Boston Harbor division manages a casino with gaming areas and a poker room, a luxury hotel tower with a spa and salon, restaurants, bars, and a nightclub, as well as a waterfront park, floral arrangements, and a water shuttle service.
Wyndham’s fourth-quarter global RevPAR grew 15% the year-ago period in constant currency, and was up 20% year over year.
How to Find the Best Hotel Stocks To Buy
When selecting hotel stocks, investors should focus on companies that are well-positioned to capitalize on the rebound in travel. The best hotel stocks to buy will be those that have strong brands, robust management teams, and the ability to quickly pivot to capitalize on opportunities. Investors should also look for companies that have low debt levels and are trading at a reasonable price.
How to Analyze Hotel Stocks
When analyzing hotel stocks, investors should look at a variety of factors, including financial performance like RevPAR (revenue per available room), industry trends, management, and competitive positioning. Investors should also assess the company’s ability to generate returns in the current environment, as well as its ability to adapt to changing market conditions.
The hotel industry is one of the most attractive investment opportunities in 2023, as global travel rebounds. Hotel room rates continue to move higher and hotel stocks are one of the more attractive investments in 2023, as global travel picks up again. Investors looking to capitalize on the potential rebound should consider hotel stocks, as these companies offer high returns and the potential for long-term growth. Careful analysis and research is essential for investors looking to make the most of these stocks, and investors should focus on well-established companies that are well-positioned to capitalize on the rebound in travel.