11 best hotel stocks to invest in

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In this article, we’ll discuss the 11 best hotel stocks to invest in. You can skip our full hotel industry analysis and jump straight to 5 best hotel stocks to invest in.

The hospitality industry has suffered terribly from the COVID-19 pandemic, and the damaging effects of government-imposed lockdowns, travel restrictions and unvaccinated visitors legally banned from some establishments have caused serious financial damage to the whole the travel and hospitality industry. According to McKinsey, the hospitality industry is one of the sectors hardest hit by the global COVID-19 pandemic, and a recovery to 2019 levels in revenues and visitors is expected in 2023 or even later.

The hotel industry should however make a comeback once the vaccine has been rolled out in a majority of countries. The hospitality industry remains a lucrative investment, especially as travel restrictions are gradually lifted and pent-up vacation plans will be realized sooner or later. Smart money is certainly being invested in the hospitality industry and companies like MGM Resorts International (NYSE: MGM), Marriott International, Inc. (NASDAQ: MAR), Hilton Worldwide Holdings Inc. (NYSE: HLT) and Hyatt Hotels Corporation. (NYSE: H) are very popular among hedge funds.

Our methodology

Let’s dive into the 11 best hotel stocks to invest in. We took hedge fund sentiment, analyst ratings, long-term growth potential and fundamentals into account when choosing these stocks. Stocks are ranked based on their popularity among hedge funds.

Why should we pay attention to hedge fund sentiment when choosing stocks? Insider Monkey’s research has identified in advance a select group of hedge funds that have outperformed S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, the selections of Shares in our monthly newsletter returned 186.1%, compared to 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by over 86 percentage points (see details here). This is why we believe that hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can sign up for our free newsletter on our homepage to get our stories delivered to your inbox.

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The best hotel stocks to invest in

11. Pebblebrook Hotel Trust (NYSE: PEB)

Number of hedge fund holders: 17

Pebblebrook Hotel Trust (NYSE: PEB) is an internally managed hotel investment company that acquires and invests in hotels located in metropolitan cities across the United States, with a primary focus on coastal properties. Pebblebrook Hotel Trust (NYSE: PEB) is known for investing particularly in resorts located near urban areas and unique destination markets, with a focus on elite clientele. Pebblebrook Hotel Trust (NYSE: PEB) is one of the best hotel values ​​to invest in right now.

At the end of June, 17 hedge funds were bullish on Pebblebrook Hotel Trust (NYSE: PEB) according to the proprietary Insider Monkey database, up from 10 in the first quarter. Ken Griffin’s Citadel Investment Group is the largest shareholder in Pebblebrook Hotel Trust (NYSE: PEB), with 70.63 million shares valued at $ 80.37 million.

10. Sunstone Hotel Investors, Inc. (NYSE: SHO)

Number of hedge fund holders: 18

Sunstone Hotel Investors, Inc. (NYSE: SHO) is an accommodation REIT that currently owns 18 hotel properties comprising 9,417 rooms, which operate under popular hotel chains.

At the end of the second quarter, 18 hedge funds held stakes in Sunstone Hotel Investors, Inc. (NYSE: SHO), up from 17 in the previous quarter. Those stakes were worth more than $ 73.6 million at the end of the second quarter. Ken Heebner’s Capital Growth Management is the largest shareholder of Sunstone Hotel Investors, Inc. (NYSE: SHO), with 1.77 million shares valued at $ 21.98 million.

On August 3, Sunstone Hotel Investors, Inc. (NYSE: SHO) reported its second quarter results. BPA broke estimates by $ 0.03 to – $ 0.01. The company’s revenue was $ 117.21 million, exceeding estimated EPS of $ 12.29 million.

9. Ryman Hospitality Properties, Inc. (NYSE: RHP)

Number of hedge fund holders: 22

Ryman Hospitality Properties, Inc. (NYSE: RHP) is one of the best hotel stocks to invest in. Ryman Hospitality Properties, Inc. (NYSE: RHP) focuses on the acquisition and management of upscale convention centers and resorts. The REIT owns five of the largest non-gaming convention center properties in the United States that operate under the Gaylord Hotels brand and are managed by Marriott International, Inc. (NASDAQ: MAR). In total, Ryman Hospitality Properties, Inc. (NYSE: RHP) owns 2.8 million square feet of indoor and outdoor space in premier convention centers and leisure facilities across the United States.

At the end of the second quarter, 22 hedge funds tracked by Insider Monkey were longs Ryman Hospitality Properties, Inc. (NYSE: RHP). This is compared to the same number of hedge funds in the first quarter. Mario Gabelli’s GAMCO Investors is the largest shareholder in Ryman Hospitality Properties, Inc. (NYSE: RHP), with 1.45 million shares valued at $ 114.76 million.

here this is what Bireme Capital has to say about Ryman Hospitality Properties, Inc. (NYSE: RHP) in their fourth quarter 2020 letter to investors:

“In the third quarter, we bought shares of Ryman Hospitality Properties (RHP), another company whose business and share price were temporarily crushed by the pandemic. Ryman owns large convention-oriented hotels under the “Gaylord” banner. Prior to 2020, the company had increased its EBITDA every year since 2012 and demonstrated its ability to profitably develop new hotels from scratch, having opened 5 since 2000. These hotels dominate their niche in the segment conferences and conventions: they have more meeting space in square feet than almost all of their competitors.

Ryman also operates a fast growing concert hall business, which includes the Ryman Auditorium, Grand Ole Opry and a chain of bars and concert halls called “Ole Red”. These include the entertainment segment of RHP, whose EBITDA increased from $ 14.5 million in 2011 to $ 58 million in 2019, a CAGR of 18%.

We believe the company will generate more than $ 300 million in free cash flow in 2022. When we purchased RHP at the end of the third quarter, its market capitalization was $ 2.0 billion, a mere 6x multiple of FCF. While the market cap recently increased to $ 3.7 billion, we still find the valuation very appealing for a company with its track record. “

8. Hyatt Hotels Corporation (NYSE: H)

Number of hedge fund holders: 23

Hyatt Hotels Corporation (NYSE: H) owns and franchises luxury hotels, resorts and vacation establishments. The luxury hotel industry mega-company is marketed as the Russell 1000 Component.

Of the 873 hedge funds tracked by Insider Monkey, 23 funds reported holding stakes in Hyatt Hotels Corporation (NYSE: H), similar to the first quarter.

Baron Funds mentioned Hyatt Hotels Corporation (NYSE: H) in its letter to investors for the second quarter of 2021. here this is what they said:

“Shares of Hyatt Hotels Corp., a global hotelier, fell in the quarter amid investor concerns over a new, more contagious variant of COVID-19 and a slower reopening of Asia and Europe. market forecasts. While the slow reopening is a disappointment, Hyatt’s group and national business bookings are starting to return, and we believe conditions will normalize by 2022, at least nationally. The company remains on track with its asset sale program as the hotel transaction market returns to pre-pandemic valuations, which should make Hyatt a higher-valued paying company. “

7. Host Hotels & Resorts, Inc. (NASDAQ: HST)

Number of hedge fund holders: 24

Host Hotels & Resorts, Inc. (NASDAQ: HST) is an S&P 500 company and the largest US accommodation REIT. Host Hotels & Resorts, Inc. (NASDAQ: HST) owns and operates luxury and high-end hotels, being a self-managed and self-managed REIT. Host Hotels & Resorts, Inc. (NASDAQ: HST) invests in geographically diverse assets, including 84 hotels in the top 20 US markets.

Of the hedge funds tracked by Insider Monkey, 24 funds were bullish on Host Hotels & Resorts, Inc. (NASDAQ: HST) at the end of the second quarter.

On October 18, Wells Fargo analyst Dori Kesten upgraded Host Hotels & Resorts, Inc. (NASDAQ: HST) from Underweight to Equal Weight, with a price target of $ 18. Analyst believes Host Hotels & Resorts, Inc. (NASDAQ: HST) is well positioned to benefit from ever-increasing hotel demand, but its growing operations will make revenue management critical, unlike budget hotels .

Like MGM Resorts International (NYSE: MGM), Marriott International, Inc. (NASDAQ: MAR), Hilton Worldwide Holdings Inc. (NYSE: HLT) and Hyatt Hotels Corporation (NYSE: H), Host Hotels & Resorts, Inc. (NASDAQ : HST) is one of the best hotel stocks to invest in.

White Brook Capital mentioned Host Hotels & Resorts, Inc. (NASDAQ: HST) in its Q3 2021 letter to investors. here this is what they said:

“The shares of Host Hotels (HST) were also sold in the 3rd quarter for reasons similar to those of Cogent, given a deterioration in the prospect of a return for leisure and business travel in groups. The capital was redeployed in the same way.

6. Wyndham Hotels & Resorts, Inc. (NYSE: WH)

Number of hedge fund holders: 24

Wyndham Hotels & Resorts, Inc. (NYSE: WH) ranks sixth on our list of the 11 Best Hotel Values ​​to Invest in. Based in New Jersey, Wyndham Hotels & Resorts, Inc. (NYSE: WH) is one of the world’s leading franchisors, with hotels in 9,280 locations around the world. Wyndham Hotels & Resorts, Inc.’s (NYSE: WH) asset portfolio includes 20 hotels, such as Baymont, Days Inn, Howard Johnson, La Quinta, Ramada, Super 8, Travelodge and Wyndham Grand. Wyndham Hotels & Resorts, Inc. (NYSE: WH) is traded as an S&P 400 component.

At the end of the second quarter, 24 hedge funds were bullish on Wyndham Hotels & Resorts, Inc. (NYSE: WH). This is compared to the same number of hedge funds in the first quarter.

JPMorgan analyst Joseph Greff maintained an overweight rating on shares of Wyndham Hotels & Resorts, Inc. (NYSE: WH), raising the price target to $ 86 from $ 83 on October 18, citing the resumption of accommodation in the United States in the third quarter as the reason for the rating. .

Like MGM Resorts International (NYSE: MGM), Marriott International, Inc. (NASDAQ: MAR), Hilton Worldwide Holdings Inc. (NYSE: HLT) and Hyatt Hotels Corporation (NYSE: H), Wyndham Hotels & Resorts, Inc. (NYSE : WH) is a remarkable hotel value to invest in.

Click here to continue reading and see the 5 best hotel stocks to invest in.

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Disclosure: none. 11 Best Hotel Stocks to Invest in is originally posted on Insider Monkey.


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