Best hotel stocks to invest in Q3 2024

The hospitality industry continues to rebound and evolve, driven by pent-up travel demand and changing consumer preferences. As we look ahead, leading hotel companies are adapting their strategies to capitalize on these trends, offering investors potential for growth in the dynamic travel and leisure sector.

Hilton Hotels stands out as a global leader in the hospitality industry, known for its diverse portfolio of brands catering to various market segments. Hyatt Hotels excels in delivering high-end experiences, with a strong focus on luxury and lifestyle properties worldwide. Marriott International leads the pack as the world's largest hotel company, offering an extensive range of brands and a robust loyalty program.

Curious about how these hospitality giants could check into your investment portfolio? Read on for our in-depth analysis and expert insights on the best hotel stocks to invest in Q3 2024, and uncover the potential for growth in this resilient and ever-adapting industry.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

  • Booking Holdings (BKNG)

    Booking Holdings Inc. is a leading online travel agency (OTA) that offers a wide range of travel products and services, including hotel reservations, flight bookings, car rentals, and vacation packages. With a strong global presence and a focus on technology, Booking Holdings has become a dominant player in the online travel industry.

    Booking Holdings financial statements

    Analysts recommendation: 0.09

    Financial Health

    • Return on assets (ROA): 18.26%
    • Return on equity (ROE): 22573.68%
    • Return on investment (ROI): 52.32%

    Profitability

    • Gross margin: 28.4%
    • Operating margin: 22.46%
    • Net profit margin: 4291.96%

    Growth

    • EPS (past 5 years): 7.12%
    • EPS (current): 142.82
    • EPS estimate (next quarter): 77.04
    • EPS growth (this year): 15.99%
    • EPS growth (next year): 14.21%
    • EPS growth (next 5 years): 14.59%
    • EPS growth (quarter-over-quarter): 27.19%
    • Sales growth (past 5 years): 18.21%
    • Sales growth (quarter-over-quarter): 7.27%

    💡 Why invest in Booking Holdings?

    Booking Holdings offers several potential advantages for investors seeking exposure to the online travel industry:

    • Global Reach: The company operates in over 200 countries and territories, providing access to a vast network of travel suppliers and customers.
    • Diverse Product Offerings: Booking Holdings' platform offers a comprehensive range of travel products, catering to various customer needs and preferences.
    • Strong Brand Recognition: The Booking.com brand is well-known and trusted by travelers worldwide, driving customer loyalty.
    • Technology-Driven Platform: Booking Holdings leverages technology to provide a seamless and efficient booking experience for customers.

    🐌 Key considerations before investing in Booking Holdings

    However, before investing in Booking Holdings, it's crucial to consider these potential challenges:

    • Economic Sensitivity: The travel industry is cyclical, and economic downturns can impact travel demand and spending.
    • Competition: The online travel market is highly competitive, with other OTAs and direct-to-consumer channels vying for customers.
    • Currency Fluctuations: Booking Holdings' operations span multiple countries, and fluctuations in currency exchange rates can impact financial results.
    • Regulatory Environment: The travel industry is subject to various regulations, including consumer protection laws and data privacy regulations.

    Final thoughts on Booking Holdings

    Booking Holdings' global reach, strong brand recognition, and diverse product offerings make it an attractive investment for those seeking exposure to the online travel industry. However, the cyclical nature of the industry, competition, currency fluctuations, and regulatory factors necessitate careful consideration. Thorough research on Booking Holdings' market expansion plans, financial performance, and the overall travel industry trends is crucial before investing. Remember, in today's connected world, online travel platforms like Booking Holdings play a vital role in facilitating travel experiences, and investing in the company can provide exposure to this growing sector.

  • Hilton Worldwide Holdings (HLT)

    Hilton Worldwide Holdings is a leading global hospitality company, owning, managing, and franchising a diverse portfolio of hotels, resorts, and timeshare properties. With a strong brand reputation and a vast global network, Hilton caters to a wide range of travelers, from business executives to leisure seekers.

    Hilton Worldwide Holdings financial statements

    Analysts recommendation: 0.99

    Financial Health

    • Return on assets (ROA): 7.8%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 16.57%

    Profitability

    • Gross margin: 21.67%
    • Operating margin: 11.2%
    • Net profit margin: 238.29%

    Growth

    • EPS (past 5 years): 11.53%
    • EPS (current): 4.72
    • EPS estimate (next quarter): 1.85
    • EPS growth (this year): 13.43%
    • EPS growth (next year): 14.88%
    • EPS growth (next 5 years): 14.97%
    • EPS growth (quarter-over-quarter): 8.12%
    • Sales growth (past 5 years): 10.86%
    • Sales growth (quarter-over-quarter): 10.94%

    💡 Why invest in Hilton Worldwide Holdings?

    Hilton Worldwide Holdings offers several potential advantages for investors seeking exposure to the travel and leisure sector:

    • Global Reach: Hilton's extensive portfolio of hotels across various segments and regions provides exposure to diverse customer bases and economic conditions.
    • Strong Brand Recognition: The Hilton brand is synonymous with hospitality, ensuring high occupancy rates and premium pricing.
    • Recurring Revenue: Hilton's fee-based management and franchising models generate stable and predictable revenue streams.
    • Growth Potential: Emerging markets and increasing global travel present significant growth opportunities for Hilton.

    🐌 Key considerations before investing in Hilton Worldwide Holdings

    However, before investing in Hilton, it's crucial to consider these potential challenges:

    • Economic Sensitivity: The hospitality industry is cyclical, and economic downturns can impact travel demand and occupancy rates.
    • Competition: The hotel industry is highly competitive, with both established chains and boutique properties vying for guests.
    • Operational Costs: Rising labor and energy costs can impact profitability.
    • Global Economic and Political Factors: Factors such as terrorism, natural disasters, and geopolitical tensions can disrupt travel patterns and affect hotel occupancy.

    Final thoughts on Hilton Worldwide Holdings

    Hilton Worldwide Holdings' strong brand, global reach, and diversified portfolio make it an attractive investment for those seeking exposure to the hospitality industry. However, the cyclical nature of the industry, competition, operational costs, and external factors necessitate careful consideration. Thorough research on Hilton's expansion plans, financial performance, and the overall global travel industry is crucial before investing.

  • Hyatt Hotels (H)

    Hyatt Hotels Corporation is a leading global hospitality company owning, managing, and franchising a diverse portfolio of hotels, resorts, and all-inclusive properties. With a strong brand reputation and a vast global network, Hyatt caters to a wide range of travelers, from business executives to leisure seekers.

    Hyatt Hotels financial statements

    Analysts recommendation: 0.41

    Financial Health

    • Return on assets (ROA): 7.69%
    • Return on equity (ROE): 25.89%
    • Return on investment (ROI): 14.38%

    Profitability

    • Gross margin: 5.45%
    • Operating margin: 14.45%
    • Net profit margin: 154.87%

    Growth

    • EPS (past 5 years): -21.1%
    • EPS (current): 9.27
    • EPS estimate (next quarter): 0.96
    • EPS growth (this year): 61.29%
    • EPS growth (next year): -1.89%
    • EPS growth (next 5 years): 18.3%
    • EPS growth (quarter-over-quarter): 449.77%
    • Sales growth (past 5 years): 21.34%
    • Sales growth (quarter-over-quarter): -20.83%

    💡 Why invest in Hyatt Hotels?

    Hyatt offers several potential advantages for investors seeking exposure to the travel and leisure sector:

    • Global Reach: Hilton's extensive portfolio of hotels across various segments and regions provides exposure to diverse customer bases and economic conditions.
    • Strong Brand Recognition: The Hilton brand is synonymous with hospitality, ensuring high occupancy rates and premium pricing.
    • Recurring Revenue: Hilton's fee-based management and franchising models generate stable and predictable revenue streams.
    • Growth Potential: Emerging markets and increasing global travel present significant growth opportunities for Hilton.

    🐌 Key considerations before investing in Hyatt Hotels

    However, before investing in Hyatt, it's crucial to consider these potential challenges:

    • Economic Sensitivity: The hospitality industry is cyclical, and economic downturns can impact travel demand and occupancy rates.
    • Competition: The hotel industry is highly competitive, with both established chains and boutique properties vying for guests.
    • Operational Costs: Rising labor and energy costs can impact profitability.
    • Global Economic and Political Factors: Factors such as terrorism, natural disasters, and geopolitical tensions can disrupt travel patterns and affect hotel occupancy.

    Final thoughts on Hyatt Hotels

    Hyatt's strong brand, global reach, and diversified portfolio make it an attractive investment for those seeking exposure to the hospitality industry. However, the cyclical nature of the industry, competition, operational costs, and external factors necessitate careful consideration. Thorough research on Hyatt's expansion plans, financial performance, and the overall global travel industry is crucial before investing.

  • Marriott International (MAR)

    Marriott International is a leading global hospitality company owning, managing, and franchising a diverse portfolio of hotels, resorts, and all-inclusive properties. With a strong brand reputation and a vast global network, Marriott caters to a wide range of travelers, from business executives to leisure seekers.

    Marriott International financial statements

    Analysts recommendation: 1.07

    Financial Health

    • Return on assets (ROA): 11.55%
    • Return on equity (ROE): 1446.77%
    • Return on investment (ROI): 26.89%

    Profitability

    • Gross margin: 16.06%
    • Operating margin: 12.01%
    • Net profit margin: 263.33%

    Growth

    • EPS (past 5 years): 13.58%
    • EPS (current): 10
    • EPS estimate (next quarter): 2.31
    • EPS growth (this year): -6.18%
    • EPS growth (next year): 13.28%
    • EPS growth (next 5 years): 4.55%
    • EPS growth (quarter-over-quarter): 13.12%
    • Sales growth (past 5 years): 9.32%
    • Sales growth (quarter-over-quarter): 5.99%

    💡 Why invest in Marriott International?

    Marriott International offers several potential advantages for investors seeking exposure to the travel and leisure sector:

    • Global Reach: Marriott's extensive portfolio of hotels across various segments and regions provides exposure to diverse customer bases and economic conditions.
    • Strong Brand Recognition: The Marriott brand is synonymous with hospitality, ensuring high occupancy rates and premium pricing.
    • Recurring Revenue: Marriott's fee-based management and franchising models generate stable and predictable revenue streams.
    • Growth Potential: Emerging markets and increasing global travel present significant growth opportunities for Marriott.

    🐌 Key considerations before investing in Marriott International

    However, before investing in Marriott, it's crucial to consider these potential challenges:

    • Economic Sensitivity: The hospitality industry is cyclical, and economic downturns can impact travel demand and occupancy rates.
    • Competition: The hotel industry is highly competitive, with both established chains and boutique properties vying for guests.
    • Operational Costs: Rising labor and energy costs can impact profitability.
    • Global Economic and Political Factors: Factors such as terrorism, natural disasters, and geopolitical tensions can disrupt travel patterns and affect hotel occupancy.

    Final thoughts on Marriott International

    Marriott's strong brand, global reach, and diversified portfolio make it an attractive investment for those seeking exposure to the hospitality industry. However, the cyclical nature of the industry, competition, operational costs, and external factors necessitate careful consideration. Thorough research on Marriott's expansion plans, financial performance, and the overall global travel industry is crucial before investing.

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