Hospitality stocks have built a name for themselves and now encompass much more than your average hotel operator. Whether its hotels, extended stay homes, or cruises, hospitality stocks are some of the most sought after especially in times of economic strength. Travel plays a big role in hospitality stocks in many ways.
Most critically, travel stocks and hospitality stocks share a common thread. It’s getting consumers quality service and moving them from point A to B efficiently. There’s also the evolving market for timeshares. While many hospitality companies have exposure, there are still a number of ways this niche is expanding. Of course, with the economic downturn in 2020, hospitality stocks have taken a bit of a back seat. Effectively canceling cruise lines’ ability to operate for nearly half of the year could be a factor to watch in the future.
Why Hospitality Stocks?
Regardless of what happens in the near term, the market for hospitality stocks won’t likely disappear anytime soon. People travel out of necessity and desire. There will be a need for hotels, planes, and boats to get to them, and experiences to be offered by hospitality companies. From an economic stance, hospitality stocks may have a tighter correlation to the makeup of the economy. But even during the time of the financial crisis, people were still taking vacations and traveling for work. Much of the focus will be on how hospitality companies evolve in the near-term.