Do You Have These Hospitality Stocks On Your Radar Right Now?
In the past two years, hospitality stocks were thoroughly beaten down thanks to the pandemic. As tourism came to halt throughout the world, cruise lines, hotels, and resorts effectively lost their main source of income. But now, thanks to strong vaccination efforts, countries around the world are starting to reopen their borders to tourism. On top of that, with people being cooped up in their homes during the pandemic, many will likely wish to travel in the upcoming summer season. As such, hospitality stocks could start to shine again.
On Wednesday, the CDC finally dropped its risk advisory for cruise ship travel following two years of warning travelers about the risks of contracting Covid-19 onboard a cruise. In an update posted online, the agency removed its “Cruise Ship Travel Health Notice”. Moving forward, the CDC will continue to provide cruise companies with advice and recommendations to keep their customers safe. All in all, investors with holdings in cruise line companies such as Royal Caribbean (NYSE: RCL) and Carnival Corporation (NYSE: CCL) are likely welcoming this good news. And on that note, check out these top hospitality stocks in the stock market today.
Hospitality Stocks To Watch In The Stock Market Today
- Vail Resorts Inc. (NYSE: MTN)
- Marriott International Inc. (NASDAQ: MAR)
- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
- Airbnb Inc. (NASDAQ: ABNB)
Next up, we have Vail Resorts. For the uninitiated, Vail is among the top names in the ski resort business. The company is divided into three segments. Most notably, is its Mountain segment, as it owns and operates 40 mountain resorts throughout three countries. Next to that, its Vail Resorts Hospitality segment owns luxury hotels under the RockResorts brand, condominiums, and golf courses. And finally, its Vail Resorts Development Company oversees property development and real estate holdings.
On Monday, the company entered into an agreement to acquire a 55% ownership stake in Andermatt-Sedrun Sport from Andermatt Swiss Alps (ASA). This acquisition marks the company’s first strategic investment into Europe. Evidently, this acquisition will grant Vail the ability to operate and tap into the European ski resort market. Andermatt-Sedrun is a renowned destination ski resort in Central Switzerland, located less than 90 minutes from three of Switzerland’s major metropolitan areas. As a matter of fact, it is one of the leading luxury resorts in Switzerland thanks to ASA’s majority shareholder, Samih Sawiris, who has invested over a billion dollars into the resort. As such, given this acquisition, would you invest in MTN stock?
Following that, we have Marriott International, a multinational company that operates, franchises, and licenses lodging to customers all over the world. Its portfolio includes nearly 8,000 properties under 30 leading brands across 139 countries and territories. The company offers Marriott Bonvoy, its highly-awarded travel program. With the recent reopening of Vietnam’s borders, Marriott yesterday announced plans to expand its portfolio in Vietnam. Notably, it expects to add an impressive 9,000 rooms to the company’s portfolio of highly-reputed hotels.
This includes hotel brands such as Ritz-Carlton Residences, Marriott Hotels, Westin, and Courtyard by Marriott. On top of that, its most global brand, Sheraton Hotels & Resorts, will also be making its debut across popular tourist destinations in Vietnam such as Ha Long Bay. Vietnam, being a top go-to destination for tourists, has experienced record levels of tourism over the past few years, giving reason for Marriott to expand its presence in the Vietnamese market. As it stands, the company operates ten properties in Vietnam, comprising 3,294 rooms and spanning six of the company’s brands. All in all, would you invest in MAR stock?
Norwegian Cruise Line
Norwegian Cruise Line, or Norwegian for short, is a cruise line that is the third-largest cruise line in the world. The company boasts a combined fleet of 28 ships with nearly 60,000 berths. It operates cruise brands such as Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. Furthermore, these brands offer itineraries to more than 490 destinations worldwide. The company also has nine more ships scheduled for delivery through 2027, comprising approximately 24,000 berths. In the past month, NCLH stock has risen in price by over 15% .
Yesterday, Norwegian announced that it has entered into an agreement with Huna Totem Corporation, a native village corporation in Alaska. Notably, the two will be working together to develop berthing and upland facilities in Whittier, Alaska. In fact, this is the second time the two companies are working together. Namely, the project will include a marine vessel from Norwegian’s three cruise brands. Juan Kuryla, SVP of Port Development and Construction for Norwegian added, “Alaska is one of the premier cruise destinations in the world and we are excited to partner once again with Huna Totem Corporation to develop facilities to enhance the experience of the hundreds of thousands of guests our brands bring to Alaska on a yearly basis.” With that said, should you keep an eye on NCLH stock?
Airbnb, in essence, functions as an online marketplace for homestays, vacation rentals, and tourism activities. It does not own any of the properties listed on its site. Instead, the company earns its profit through commissions from each booking. For a sense of scale, its platform carries over 6 million listings and has over 4 million hosts. Besides that, there are active Airbnb listings in over 200 countries and regions. In February, Airbnb reported its fourth-quarter earnings that beat analyst estimates on earnings and revenue.
For starters, Airbnb reported revenues of $1.53 billion, up 78% year-over-year and beating consensus estimates of $1.43 billion. As for its earnings, the company brought in $55 million, a decent recovery against the backdrop of the pandemic last year. Next to that, it also forecasts first-quarter 2022 nights and experiences booked to significantly exceed pre-pandemic first-quarter 2019 levels. The company also expects revenue to land between $1.41 billion and $1.48 billion this quarter, topping analyst predictions of $1.24 billion. Given this quick recovery, does ABNB stock pique your interest?