Best hotel stocks to invest in 2025

Global travel demand has reached new heights, with the hospitality sector demonstrating resilient growth across key markets. Which hotel stocks offer the best combination of brand strength, operational efficiency, and sustainable profitability?

Scandic Hotels Group dominates the Nordic hospitality market with approximately 280 hotels, focusing on accessible and sustainable hotel experiences. Hilton operates over 7,000 properties across 123 countries, providing exceptional hospitality through renowned brands like Waldorf Astoria and Conrad. Marriott manages and franchises over 8,500 properties globally, offering high-quality accommodations through prestigious brands including Ritz-Carlton and St. Regis.

These hotel companies combine strong fundamentals with proven operational excellence, making them attractive long-term investments. Investors seeking exposure to the thriving hospitality sector should consider this list of the best hotel stocks to buy in 2025.

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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 stocks mentioned in this article.

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

  • DO & CO (VI:DOC)

    DO & CO Aktiengesellschaft is an Austrian company specializing in premium catering services for airlines, events, and upscale hospitality venues. The company was founded in 1981 in Vienna, Austria, and has since grown into a global leader in high-end culinary solutions. Known for its focus on quality, innovation, and luxury, DO & CO has built strong partnerships with top airlines, sports organizations, and gourmet restaurants worldwide.

    The company`s core business revolves around three main segments: airline catering, international event catering, and restaurant, hotel, and retail operations. DO & CO provides tailor-made dining experiences for some of the world`s most prestigious airlines, including Emirates and Turkish Airlines, while also handling catering for major events like Formula 1 and UEFA football tournaments. Its luxury-focused approach and commitment to high-quality ingredients set it apart in the global food service industry.

    DO & CO financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 10.07%
    • Return on equity (ROE): 30.73%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 25.44%
    • Operating margin: 8.5%
    • Net profit margin: 4.27%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 9.15
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 44.3%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 10.9%

    💡 Why invest in DO & CO?

    DO & CO`s unique position in the hospitality and catering industry offers several potential advantages for investors seeking exposure to a growing and luxury-oriented sector:

    • Diversified Revenue Portfolio: With operations spanning airline catering, international events, and hospitality venues, DO & CO maintains reduced reliance on any single market segment, providing operational stability and risk mitigation.
    • Global Market Presence: The company`s extensive international reach allows it to effectively tap into various geographic markets and cater to diverse customer preferences across multiple continents and cultural segments.
    • Premium Service Focus: DO & CO strategically positions itself as a luxury brand, catering to high-end clientele with sophisticated demands for exceptional culinary experiences and premium service quality standards.
    • Growth Market Exposure: The global tourism and events industries offer significant growth opportunities for DO & CO to expand its operations, particularly in emerging markets and premium hospitality segments.

    🐌 Key considerations before investing in DO & CO

    However, before investing in DO & CO, it`s crucial to consider these potential challenges:

    • Economic Cycle Sensitivity: The hospitality and travel industries experience cyclical fluctuations, with economic downturns significantly impacting demand for premium services and luxury dining experiences across all market segments.
    • Competitive Market Pressures: The catering and hospitality sector operates with intense competition from both established industry players and innovative new entrants aggressively vying for market share and premium client contracts.
    • Operational Management Complexity: Managing diverse operations across different countries, cultural contexts, and business segments creates significant complexity that requires sophisticated management systems and operational expertise.
    • Key Client Dependency: While DO & CO maintains a diversified client base, substantial reliance on major airline partnerships and large event contracts can create revenue volatility and concentration risk.

    Final thoughts on DO & CO

    DO & CO`s focus on premium culinary experiences, global reach, and exposure to growing hospitality and events industries create compelling opportunities for long-term investors seeking luxury sector exposure. However, the cyclical nature of the industry, competitive pressures, and operational complexities require careful evaluation of potential risks and market dynamics. Like a master chef creating exceptional dining experiences, DO & CO combines culinary artistry with strategic positioning to serve discerning clients across multiple premium market segments.

  • Scandic Hotels Group (ST:SHOT)

    Scandic Hotels Group AB is the largest hotel operator in the Nordic region, providing accommodation and hospitality services across Sweden, Norway, Denmark, Finland, and Germany through a portfolio of approximately 280 hotels with over 58,000 rooms. Founded in 1963 and headquartered in Stockholm, Sweden, the company has established itself as the leading hospitality brand in Northern Europe by focusing on accessible, sustainable, and customer-centric hotel experiences that cater to both business and leisure travelers. Scandic Hotels has built a strong market position through strategic acquisitions, organic growth, and a commitment to environmental sustainability that resonates with Nordic values and customer preferences.

    The company`s core operations encompass hotel management, franchise operations, and hospitality services delivered through a network of owned, leased, and franchised properties that serve diverse customer segments including corporate travelers, conference organizers, and leisure guests. Scandic Hotels differentiates itself through its focus on accessibility for disabled guests, environmental sustainability initiatives, and Nordic design aesthetics that create distinctive brand experiences. With the recovery of travel demand post-pandemic, growing business travel activity, and increasing focus on sustainable tourism, Scandic Hotels is positioned to capitalize on the normalization of hospitality markets while leveraging its dominant Nordic market position and operational expertise.

    Scandic Hotels Group financial statements

    Analysts recommendation: 2.4

    Financial Health

    • Return on assets (ROA): 3.21%
    • Return on equity (ROE): 28.2%
    • Return on investment (ROI): 7.2%

    Profitability

    • Gross margin: 50.84%
    • Operating margin: 14.08%
    • Net profit margin: 3.28%

    Growth

    • EPS (past 5 years): -12.4%
    • EPS (current): 3.58
    • EPS estimate (next quarter): 9.8
    • EPS growth (this year): -16.9%
    • EPS growth (next year): 24.7%
    • EPS growth (next 5 years): 18.9%
    • EPS growth (quarter-over-quarter): 89.4%
    • Sales growth (past 5 years): 2.8%
    • Sales growth (quarter-over-quarter): -1.3%

    💡 Why invest in Scandic Hotels Group?

    Like a welcoming Nordic host who creates memorable experiences while championing sustainability, Scandic Hotels demonstrates compelling strengths that make it attractive in the recovering hospitality sector:

    • Nordic Market Dominance: Scandic Hotels dominates the Nordic hospitality market with approximately 280 hotels and 58,000 rooms, providing the largest hotel network, strong brand recognition, and established customer relationships.
    • Environmental Sustainability Pioneer: The company has pioneered environmental sustainability in hospitality with comprehensive green initiatives that appeal to environmentally conscious travelers and align with Nordic values and regulatory requirements.
    • Diversified Customer Segments: Scandic Hotels serves multiple customer segments including business travelers, conferences, and leisure guests across different geographic markets, providing revenue diversification and stability.
    • Travel Recovery Momentum: The company benefits from the normalization of travel patterns, return of business travel, and pent-up demand for hospitality services as pandemic restrictions ease and economic activity recovers.

    🐌 Key considerations before investing in Scandic Hotels Group

    However, like navigating unpredictable travel seasons where economic uncertainties and competitive pressures create challenges, Scandic Hotels faces several risks that hospitality investors must carefully evaluate:

    • Economic Cycle Vulnerability: Hotel demand is highly sensitive to economic conditions, business travel budgets, and consumer discretionary spending, making revenue vulnerable to economic downturns and recession impacts on travel activity.
    • Regional Market Concentration: Heavy focus on Nordic markets creates vulnerability to regional economic conditions, currency fluctuations, and local regulatory changes that could significantly impact performance across operations.
    • Fixed Cost Burden: Hotel operations involve significant fixed costs including property leases, labor, and maintenance that can pressure profitability during periods of low occupancy or reduced average daily rates.
    • Competitive Market Dynamics: The hospitality industry faces competition from other hotel chains, alternative accommodations, and new market entrants that can pressure occupancy rates, pricing power, and market share in key markets.

    Final thoughts on Scandic Hotels Group

    Scandic Hotels Group`s Nordic market leadership, sustainability focus, diversified revenue base, and post-pandemic recovery positioning create compelling opportunities for investors seeking exposure to the hospitality sector recovery and Nordic travel market growth. However, the company`s economic sensitivity, geographic concentration, high fixed costs, and competitive pressures require careful evaluation of the cyclical nature of hospitality investing. Like a resilient hospitality leader who adapts to changing travel patterns, Scandic Hotels offers recovery potential for investors who understand both the opportunities and challenges of the evolving Nordic hospitality landscape.

  • Hilton (NYSE:HLT)

    Hilton Worldwide Holdings is a globally recognized hospitality company that owns, manages, and franchises a vast portfolio of hotels and resorts across the world. Founded in 1919 by Conrad Hilton in Cisco, Texas, the company has grown into one of the largest and most influential players in the hotel industry. With headquarters in McLean, Virginia, Hilton operates more than 7,000 properties across 123 countries and territories, offering a range of accommodations from luxury to budget-friendly options.

    The company`s core business focuses on providing exceptional hospitality experiences through its renowned brands, including Waldorf Astoria, Conrad, Hilton Hotels & Resorts, and Hampton by Hilton. Hilton is known for its innovation in the hospitality sector, pioneering the industry`s first customer loyalty program, Hilton Honors, which boasts millions of members worldwide. By consistently expanding its global footprint and enhancing guest experiences through technology and service excellence, Hilton continues to be a leader in the travel and lodging industry.

    Hilton financial statements

    Analysts recommendation: 2.46

    Financial Health

    • Return on assets (ROA): 9.55%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 22.53%

    Profitability

    • Gross margin: 77.09%
    • Operating margin: 58.45%
    • Net profit margin: 32.92%

    Growth

    • EPS (past 5 years): 15.11%
    • EPS (current): 6.5
    • EPS estimate (next quarter): 2.02
    • EPS growth (this year): 10.2%
    • EPS growth (next year): 14.02%
    • EPS growth (next 5 years): 13.57%
    • EPS growth (quarter-over-quarter): 18.8%
    • Sales growth (past 5 years): 3.4%
    • Sales growth (quarter-over-quarter): 5.4%

    💡 Why invest in Hilton?

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

    • Worldwide Property Network: Hilton operates an extensive portfolio of over 7,000 hotels across 123 countries, providing exposure to diverse customer bases, economic conditions, and geographic markets for revenue diversification.
    • Premium Brand Portfolio: The Hilton brand family includes prestigious names like Waldorf Astoria and Conrad, ensuring high occupancy rates, premium pricing power, and strong customer loyalty across market segments.
    • Asset Light Model: Hilton generates stable and predictable revenue through fee-based management and franchising models, minimizing capital requirements while maximizing returns on invested capital and cash flow generation.
    • Digital Innovation Leadership: Emerging markets and increasing global travel present significant growth opportunities, while Hilton Honors loyalty program with millions of members drives direct bookings and reduces distribution costs.

    🐌 Key considerations before investing in Hilton

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

    • Cyclical Industry Exposure: The hospitality industry experiences significant cyclicality, with economic downturns severely impacting travel demand, occupancy rates, and average daily rates across all property segments and regions.
    • Intense Market Competition: The hotel industry faces fierce competition from established chains, boutique properties, and alternative accommodations like Airbnb, creating ongoing pressure on pricing, market share, and profitability.
    • Rising Operating Expenses: Increasing labor costs, energy expenses, and property maintenance requirements can significantly impact profitability margins, particularly during periods of reduced occupancy or economic uncertainty.
    • Geopolitical Risk Factors: External factors including terrorism threats, natural disasters, pandemics, and geopolitical tensions can severely disrupt travel patterns, affect hotel occupancy, and create unpredictable revenue volatility.

    Final thoughts on Hilton

    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.

  • Marriott (NYSE:MAR)

    Marriott International is one of the world`s leading hospitality companies, operating a vast network of hotels and resorts across numerous brands and market segments. Founded in 1927 by J. Willard Marriott in Washington, D.C., the company began as a root beer stand before expanding into the hotel business. Today, headquartered in Bethesda, Maryland, Marriott manages and franchises over 8,500 properties across 138 countries and territories, making it one of the largest hotel chains globally.

    The company`s core business revolves around providing high-quality accommodations through its diverse portfolio of brands, including The Ritz-Carlton, St. Regis, JW Marriott, Sheraton, and Courtyard by Marriott. Marriott is also known for its award-winning loyalty program, Marriott Bonvoy, which offers exclusive benefits to millions of travelers worldwide. With a commitment to innovation, customer satisfaction, and sustainable hospitality practices, Marriott continues to shape the future of the global travel industry.

    Marriott financial statements

    Analysts recommendation: 2.41

    Financial Health

    • Return on assets (ROA): 9.38%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 21.12%

    Profitability

    • Gross margin: 81.69%
    • Operating margin: 68.65%
    • Net profit margin: 36.37%

    Growth

    • EPS (past 5 years): 17.02%
    • EPS (current): 8.87
    • EPS estimate (next quarter): 2.62
    • EPS growth (this year): 3.3%
    • EPS growth (next year): 12.73%
    • EPS growth (next 5 years): 11.1%
    • EPS growth (quarter-over-quarter): 23.81%
    • Sales growth (past 5 years): 3.66%
    • Sales growth (quarter-over-quarter): 5.9%

    💡 Why invest in Marriott?

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

    • Largest Hotel Chain: Marriott operates over 8,500 properties across 138 countries with 30+ brands, providing unmatched scale, geographic diversification, and exposure to all market segments from luxury to economy accommodations.
    • Iconic Brand Strength: The Marriott portfolio includes prestigious brands like Ritz-Carlton, St. Regis, and JW Marriott, commanding premium pricing, exceptional customer loyalty, and strong market positioning across all segments.
    • Fee Based Revenue: Marriott generates stable income through management and franchise fees rather than property ownership, minimizing capital requirements, reducing operational risk, and maximizing returns consistently.
    • Bonvoy Loyalty Program: Marriott Bonvoy is the world's largest hotel loyalty program with millions of members, driving direct bookings, reducing distribution costs, and creating valuable customer data insights.

    🐌 Key considerations before investing in Marriott

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

    • Travel Demand Volatility: The hospitality sector experiences significant cyclicality, with economic recessions, pandemics, and travel disruptions severely impacting occupancy rates, average daily rates, and revenue performance.
    • Competitive Lodging Market: The hotel industry faces intense competition from established chains, independent properties, and alternative accommodations like Airbnb, creating constant pressure on pricing and market share.
    • Labor Cost Pressures: Rising wages, employee benefits, and labor shortages in the hospitality sector significantly impact operational costs, service quality, and profitability margins, particularly in high-cost urban markets.
    • External Disruption Risks: Terrorism, natural disasters, geopolitical conflicts, and health crises can severely disrupt international travel patterns, affect hotel occupancy, and create unpredictable revenue volatility.

    Final thoughts on Marriott

    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.

  • Hyatt (NYSE:H)

    Hyatt Hotels Corporation is a globally recognized hospitality company known for its upscale and luxury hotel brands catering to business and leisure travelers. Founded in 1957 by Jay Pritzker in Los Angeles, California, the company started with the purchase of the Hyatt House motel near Los Angeles International Airport. Today, headquartered in Chicago, Illinois, Hyatt operates over 1,300 properties across more than 80 countries, offering a wide range of accommodations and experiences.

    Hyatt`s core business focuses on providing premium hospitality through brands such as Park Hyatt, Grand Hyatt, Andaz, Hyatt Regency, and Hyatt Place. The company is known for its customer-centric approach, emphasizing personalized service, wellness-oriented amenities, and loyalty benefits through the World of Hyatt program. With a strong commitment to growth, innovation, and sustainability, Hyatt continues to expand its global footprint while delivering exceptional travel experiences.

    Hyatt financial statements

    Analysts recommendation: 2.48

    Financial Health

    • Return on assets (ROA): 2.07%
    • Return on equity (ROE): 11.24%
    • Return on investment (ROI): 10.41%

    Profitability

    • Gross margin: 43.91%
    • Operating margin: 16.22%
    • Net profit margin: 13.42%

    Growth

    • EPS (past 5 years): 11.92%
    • EPS (current): 4.39
    • EPS estimate (next quarter): 0.66
    • EPS growth (this year): -31.26%
    • EPS growth (next year): 31.22%
    • EPS growth (next 5 years): 4.25%
    • EPS growth (quarter-over-quarter): -95.86%
    • Sales growth (past 5 years): 5.67%
    • Sales growth (quarter-over-quarter): 0.2%

    💡 Why invest in Hyatt?

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

    • Luxury Market Focus: Hyatt specializes in upscale and luxury segments with brands like Park Hyatt and Grand Hyatt, commanding premium pricing, higher profit margins, and attracting affluent travelers globally.
    • Customer Centric Approach: Hyatt emphasizes personalized service, wellness amenities, and exceptional guest experiences, creating strong brand loyalty, positive reviews, and differentiation from competitors.
    • World of Hyatt: The loyalty program drives customer retention, direct bookings, and repeat business while reducing dependence on third-party booking platforms and their associated commission costs.
    • Strategic Expansion Plans: Emerging markets and increasing global luxury travel present significant growth opportunities, while Hyatt's selective expansion strategy focuses on high-return markets and premium property acquisitions.

    🐌 Key considerations before investing in Hyatt

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

    • Luxury Segment Vulnerability: The upscale hospitality sector experiences heightened cyclicality, with economic downturns and corporate budget cuts severely impacting luxury travel demand, occupancy rates, and average daily rates.
    • Smaller Scale Disadvantage: Compared to larger competitors like Marriott and Hilton, Hyatt operates fewer properties, limiting economies of scale, negotiating power with suppliers, and global distribution network reach in key markets.
    • Premium Cost Structure: Luxury properties require higher labor costs, premium amenities, and exceptional service standards, creating elevated operational expenses that significantly impact profitability during reduced occupancy.
    • Travel Industry Disruptions: External factors including terrorism, pandemics, natural disasters, and geopolitical tensions disproportionately affect luxury travel patterns, creating unpredictable revenue volatility.

    Final thoughts on Hyatt

    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.

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