Check Out These Hotel Stocks On The Stock Market Today
Over the past two years, most investors have likely avoided hotel stocks thanks to the pandemic. With operations in various industries forced to shut down, the hospitality industry has not been spared from the implications of the Covid-19 pandemic. Fast forward to now, with restrictions largely lifted, is it time for investors to take another look at hotel stocks? Although there are growing concerns about the impact of inflation on the economy, it seems that some players in the sector remain optimistic about their prospects.
For instance, Expedia (NASDAQ: EXPE) CEO Peter Kern believes consumers will still be eager to travel this summer, even with rising inflation. “From what we can see from the US and Western markets, there’s tons of pent up demand,Kern said in an interview with Bloomberg on Wednesday. Additionally, in its earnings release last month, Expedia also provided an upbeat forecast. Other hospitality players such as Reserve credits (NASDAQ: BKNG) and Airbnb (NASDAQ: ABNB) also shared the same sentiment in their respective quarterly reports. As such, could this upcoming summer vacation provide a boost to hotel stocks? If you think so, here are five hotel stocks to check out on the stock market today.
Hospitality Stocks for Your Summer Watchlist
First of all, we have Vail Resorts. For the uninitiated, Vail is one of the big names in the ski resort business. The Company operates through three segments. Specifically, its Mountain segment owns and operates 40 mountain resorts in three countries. Alongside this, its Vail Resorts Hospitality segment has luxury hotels under the RockResorts brand, condominiums and golf courses. And finally, its Vail Resorts Development Company oversees property development and real estate. The company released its financial statements for the third quarter of fiscal 2022 yesterday.
Cut to the chase, Vail reported total net income of $1.18 billion, a commendable jump of 32.3% from last year. As for its earnings, the ski resort company raked in net income of $372.6 million, or $9.16 per diluted share during the quarter. For comparison, it earned $274.6 million, or $6.72 per diluted share the previous year. In the same earnings report, Vail shared its outlook for the year. Namely, it updated its EBITDA forecast to be between $828 million and $842 million. That being said, should MTN stock be added to the portfolio?
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Hilton Worldwide Holdings
Following this, we have Hilton Worldwide Holdings. Most are familiar with this leading name on the global hospitality scene today. Essentially, Hilton operates through a massive portfolio of 18 world-class brands. The likes of which span 6,900 properties, offering nearly 1.1 million rooms in 122 countries and territories around the world. According to company estimates, it has hosted more than 3 billion guests since it began operations more than a century ago.
Yesterday the company announced plans to open one of the world’s largest Hampton by Hilton hotels in Vienna. This comes after a franchise agreement with Primestar Hospitality GmbH. Notably, Hilton has several franchise agreements with Primestar in Germany. The new development, which is expected to open in fall 2024, will have 358 rooms adorned with Hilton’s modern design, which includes contemporary furnishings and signature bedding. Along with this, the hotel will include a fully equipped fitness center and an open plan lobby. Given this development, will you be watching the HLT stock?
Another home stock worth noting today is Hyatt Hotels. As one of the largest hospitality companies in the world, Hyatt is committed to providing the best service to its guests. The company primarily manages and franchises luxury and business hotels, resorts and vacation properties. To put the scale of Hyatt’s footprint into perspective, it has approximately 1,175 hotels and a total of 310,000 rooms. These hotels are found in 69 countries on six continents.
Earlier this week, the company shared an operational update for May. For starters, its revenue per available room (RevPAR) was around $127, its strongest RevPAR performance in a month since November 2019. Additionally, its average daily rate in May was around 8% higher. at May 2019 levels, led by luxury brands in the Americas. Looking at company performance, is the H stock a buy?
Wyndham Hotels and Resorts
Wyndham Hotels and Resorts describes itself as the largest hotel franchisor in the world. It has over 9,280 locations and has a portfolio of 20 hotel brands, including Baymont, Days Inn, La Quinta, Wyndham, and more. The Company operates through its hotel franchise segment and hotel management segment. Last week, the company announced the opening of its first dual-brand La Quinta and Hawthorn Suites concept in Pflugerville, one of Texas’ fastest growing suburbs.
This one-of-a-kind pairing enables landlords to reach clients seeking both extended stays and temporary leisure and business accommodations. As it stands, the dual-brand concept has contributed 48 hotels to Wyndham’s now-record development pipeline of more than 1,500 hotels. The new Pflugerville property has 103 total rooms, including 73 La Quinta-winning Del Sol prototype rooms and 30 Hawthorn Suites. The new design of the Hawthorn room includes a fully equipped kitchen to make the stay experience more guest friendly. With this update, would you watch the WH action?
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Wynn Resorts is a developer and operator of high-end hotels and casinos. These would include the likes of Wynn Las Vegas, Encore Boston Harbor, Wynn Macau and Wynn Palace, Cotai. In addition to this, the company also operates through its online gaming division, Wynn Interactive. The likes that deliver world-class online casino and sports betting experiences to consumers in the UK and US The company last month released its financial results for the quarter ended March 31, 2022.
According to the report, operating revenue was $953.3 million for the quarter, representing an increase of more than 29% from $736.7 million a year earlier. In addition, Wynn managed to significantly reduce its losses. Namely, it reported a loss of $183.3 million compared to $281.0 million in 2021.”Our first quarter results reflect the continued strength of Wynn Las Vegas and Encore Boston Harbor, where our teams are relentlessly focused on five-star hospitality and world-class experiences, combined with very strong guest demand for providing a new first quarter record for adjusted property. EBITDA from both properties,” said CEO Craig Billings. As such, is WYNN stock worth watching?
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