Best hotel stocks to invest in Q1 2025

The hotel industry continues to thrive as global travel and tourism rebound, supported by growing consumer demand for leisure and business accommodations. Leading companies in this sector are innovating with unique offerings and strong brand recognition to cater to diverse traveler preferences.

Booking Holdings operates the world’s largest online travel platforms, connecting millions of customers to lodging options worldwide. Hilton Worldwide Holdings is a renowned hotel operator with iconic brands and a reputation for quality service and global presence. Marriott International, a leader in the hospitality industry, boasts a vast portfolio of luxury and mid-range hotels that appeal to both business and leisure travelers.

As Q1 2025 nears, investing in the hotel industry offers a way to capitalize on the continued recovery and expansion of global travel. These stocks provide strong growth potential and diversification opportunities for your portfolio.

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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 (BKNG)

    Booking Holdings is a global leader in online travel and related services, connecting millions of travelers with accommodations, transportation, and experiences worldwide. Founded in 1997 and headquartered in Norwalk, Connecticut, the company has grown into one of the most influential players in the travel industry. Through its portfolio of brands, including Booking.com, Priceline, Agoda, and Kayak, Booking Holdings facilitates seamless travel planning across more than 220 countries and territories.

    The company's core business revolves around providing a digital marketplace where users can book hotels, flights, rental cars, and vacation packages. Leveraging advanced data analytics and artificial intelligence, Booking Holdings enhances the travel experience with personalized recommendations and competitive pricing. By continuously innovating and expanding its services, the company remains at the forefront of the global travel sector, helping millions of customers navigate their journeys with convenience and confidence.

    Booking financial statements

    Analysts recommendation: 1.83

    Financial Health

    • Return on assets (ROA): 18.79%
    • Return on equity (ROE): 22573.68%
    • Return on investment (ROI): 47.3%

    Profitability

    • Gross margin: 97.03%
    • Operating margin: 27.92%
    • Net profit margin: 21.85%

    Growth

    • EPS (past 5 years): 7.12%
    • EPS (current): 147.38
    • EPS estimate (next quarter): 36.09
    • EPS growth (this year): 19.84%
    • EPS growth (next year): 14.26%
    • EPS growth (next 5 years): 16.58%
    • EPS growth (quarter-over-quarter): 6.52%
    • Sales growth (past 5 years): 21.83%
    • Sales growth (quarter-over-quarter): 8.9%

    💡 Why invest in Booking?

    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

    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

    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 (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: 2.36

    Financial Health

    • Return on assets (ROA): 7.38%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 14.8%

    Profitability

    • Gross margin: 26.06%
    • Operating margin: 21.04%
    • Net profit margin: 10.7%

    Growth

    • EPS (past 5 years): 11.53%
    • EPS (current): 4.66
    • EPS estimate (next quarter): 1.68
    • EPS growth (this year): 13.4%
    • EPS growth (next year): 13.17%
    • EPS growth (next 5 years): 14.11%
    • EPS growth (quarter-over-quarter): -3.99%
    • Sales growth (past 5 years): 12.05%
    • Sales growth (quarter-over-quarter): 7.26%

    💡 Why invest in Hilton?

    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

    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

    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 (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: 2.57

    Financial Health

    • Return on assets (ROA): 10.75%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 24.98%

    Profitability

    • Gross margin: 19.71%
    • Operating margin: 15.21%
    • Net profit margin: 11.18%

    Growth

    • EPS (past 5 years): 13.58%
    • EPS (current): 9.56
    • EPS estimate (next quarter): 2.38
    • EPS growth (this year): -7.18%
    • EPS growth (next year): 14.63%
    • EPS growth (next 5 years): 5.98%
    • EPS growth (quarter-over-quarter): -17.47%
    • Sales growth (past 5 years): 11.39%
    • Sales growth (quarter-over-quarter): 5.52%

    💡 Why invest in Marriott?

    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

    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

    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 (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): 11.4%
    • Return on equity (ROE): 37.84%
    • Return on investment (ROI): 20.77%

    Profitability

    • Gross margin: 14.45%
    • Operating margin: 6.12%
    • Net profit margin: 20.32%

    Growth

    • EPS (past 5 years): -21.1%
    • EPS (current): 13.27
    • EPS estimate (next quarter): 0.72
    • EPS growth (this year): 53.47%
    • EPS growth (next year): -4.37%
    • EPS growth (next 5 years): 22.56%
    • EPS growth (quarter-over-quarter): 627.83%
    • Sales growth (past 5 years): 23.08%
    • Sales growth (quarter-over-quarter): 2.11%

    💡 Why invest in Hyatt?

    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

    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

    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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