Check Out These Hospitality Stocks In The Stock Market Today
In the past couple of years, most investors likely avoided hospitality stocks thanks to the pandemic. With operations across various industries being forced to shut down, the hospitality industry was not spared from the implications of the Covid-19 pandemic. Fast forward to now, with restrictions largely being lifted, could it be time for investors to consider hospitality stocks once again? Although there are growing concerns about inflation taking its toll on the economy, it appears that some of the players in the industry remain bullish on their prospects.
For instance, Expedia’s (NASDAQ: EXPE) CEO Peter Kern believes that consumers will still be keen on traveling this summer season even with the higher inflation. “From what we can see of the US markets and western markets, there’s tons of pent-up demand,” Kern said in a Bloomberg interview on Wednesday. Moreover, in its earnings release last month, Expedia also provided an upbeat forecast. Other hospitality players such as Booking Holdings (NASDAQ: BKNG) and Airbnb (NASDAQ: ABNB) also shared the same sentiment in their respective quarterly reports. As such, could this coming summer holiday provide hospitality stocks a boost? If you believe so, here are five hospitality stocks to check out in the stock market today.
Hospitality Stocks For Your Summer Watchlist
- Vail Resorts Inc. (NYSE: MTN)
- Hilton Worldwide Holdings Inc. (NYSE: HLT)
- Hyatt Hotels Corporation (NYSE: H)
- Wyndham Hotels & Resorts Inc. (NYSE: WH)
- Wynn Resorts Limited (NASDAQ: WYNN)
First up, we have Vail Resorts. For the uninitiated, Vail is among the top names in the ski resort business. The company operates through three segments. Most notably, its Mountain segment 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. Yesterday, the company posted its financials for the third quarter of fiscal 2022.
Getting straight to it, Vail reported a total net revenue of $1.18 billion, a commendable leap of 32.3% from last year. As for its earnings, the ski resort company raked in a net income of $372.6 million, or $9.16 per diluted share during the quarter. For comparison, it brought in $274.6 million, or $6.72 per diluted share in the prior year. In the same earnings report, Vail shared its outlook for the year. Namely, it updated its EBITDA guidance to be between $828 million and $842 million. With that being said, is MTN stock one to add to the portfolio?
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Hilton Worldwide Holdings
Following that, we have Hilton Worldwide Holdings. Most would be familiar with this leading name in the global hospitality scene today. In essence, Hilton operates via a massive portfolio of 18 world-class brands. The likes of which span 6,900 properties, offering nearly 1.1 million rooms across 122 countries and territories worldwide. By the company’s estimates, it has housed over 3 billion guests since beginning operations over 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 set to open in Autumn 2024, will have 358 guest rooms graced by Hilton’s modern design which features contemporary furnishing and signature bedding. Along with that, the hotel will include a fully-equipped fitness center and an open concept lobby space. Considering this development, will you be watching HLT stock?
Another hospitality stock worth noting today is Hyatt Hotels. As one of the world’s top hospitality companies, Hyatt commits itself to providing the best service for its guests. For the most part, the company manages and franchises luxury and business hotels, resorts, and vacation properties. To put into perspective the scale of Hyatt’s footprint, it has about 1,175 hotels and a total of 310,000 rooms. These hotels can be found in 69 countries across six continents.
Earlier this week, the company shared an operational update for May. For starters, its revenue per available room (RevPAR) was roughly $127, its strongest RevPAR performance in any month since November of 2019. Besides that, its average daily rate in May was about 8% above May 2019 levels, led by luxury brands in the Americas. Looking at the company’s performance, is H stock a buy?
Wyndham Hotels & Resorts
Wyndham Hotels & Resorts describes itself as the largest hotel franchisor in the world. It boasts over 9,280 locations and has a portfolio of 20 hotel brands which include the likes of Baymont, Days Inn, La Quinta, Wyndham, and more. The company operates through its Hotel Franchising segment and its Hotel Management segment. Last week, the company announced the opening of its first La Quinta and Hawthorn Suites dual-branded concept in Pflugerville, one of Texas’s fastest-growing suburbs.
This first-of-its-kind pairing enables owners to reach guests seeking both extended-stay and leisure and business transient accommodations. As it stands, the dual-brand concept has contributed 48 hotels to Wyndham’s now record-setting development pipeline of over 1,500 hotels. The new Pflugerville property has a total of 103 rooms, with 73 La Quinta’s award-winning Del Sol prototype guest rooms and 30 Hawthorn Suites rooms. The new Hawthorn room design includes a fully-equipped kitchen to make the staying experience more home-like. With this update, would you be watching WH stock?
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 that, the company also operates via its online gaming division, Wynn Interactive. The likes of which offer world-class online casino and sports betting experiences to consumers across the U.K. and the U.S. Last month, the company reported its financial results for the quarter ended March 31, 2022.
According to the report, operating revenues were $953.3 million for the quarter, representing an increase of over 29% from $736.7 million in the prior year. Besides, Wynn managed to narrow its losses by a considerable amount. Namely, it reported a loss of $183.3 million as compared to $281.0 million in 2021. “Our first-quarter results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor where our teams’ unrelenting focus on five-star hospitality and world-class experiences combined with very strong customer demand to deliver a new first-quarter record for Adjusted Property EBITDA at both properties,” said CEO Craig Billings. As such, is WYNN stock worth watching?