In this article, we will discuss the 11 best hotel stocks to invest in. You can skip our comprehensive analysis of the hotel industry, and go directly to the 5 Best Hotel Stocks To Invest In.
The hotel industry has suffered terribly due to the COVID-19 pandemic, and the adverse effects of government mandated lockdowns, travel restrictions, and unvaccinated visitors legally being banned from certain establishments have caused serious financial damage to the entire travel and hospitality industry. According to McKinsey, the hotel industry is one of the hardest hit sectors by the global COVID-19 pandemic, and the recovery to the 2019 level of revenue and visitors is expected in 2023 or even later.
The hotel industry, however, is expected to make a comeback, once the vaccine rollout is completed for a majority of countries. The hotel industry is still a lucrative investment, especially as travel restrictions are being gradually lifted, and pent-up vacation plans will be carried out sooner or later. The smart money is certainly invested in the hospitality industry, and companies like MGM Resorts International (NYSE:MGM), Marriott International, Inc. (NASDAQ:MAR), Hilton Worldwide Holdings Inc. (NYSE:HLT), and Hyatt Hotels Corporation (NYSE:H) are very popular among hedge funds.
Let’s dive into the 11 best hotel stocks to invest in. We took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks. The stocks are ranked based on their popularity amongst the hedge funds.
Why should we pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Best Hotel Stocks to Invest In
11. Pebblebrook Hotel Trust (NYSE:PEB)
Number of Hedge Fund Holders: 17
Pebblebrook Hotel Trust (NYSE:PEB) is a hotel investment company that is internally managed, and acquires and invests in hotels located in metropolitan United States cities, focusing mainly on coastal properties. Pebblebrook Hotel Trust (NYSE:PEB) is known to invest particularly in resorts that are located suitably near urban areas, and unique destination markets, focusing on the elite clientele. Pebblebrook Hotel Trust (NYSE:PEB) is one of the best hotel stocks to invest in currently.
At the end of June, 17 hedge funds were bullish on Pebblebrook Hotel Trust (NYSE:PEB) according to Insider Monkey’s exclusive database, up from 10 in Q1. Ken Griffin’s Citadel Investment Group is the leading stakeholder in Pebblebrook Hotel Trust (NYSE:PEB), with 70.63 million shares worth $80.37 million.
10. Sunstone Hotel Investors, Inc. (NYSE:SHO)
Number of Hedge Fund Holders: 18
Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging REIT that currently owns 18 hotel properties comprising 9417 rooms, which are operating under popular hotel chains.
At the end of the second quarter, 18 hedge funds held stakes in Sunstone Hotel Investors, Inc. (NYSE:SHO), up from 17 in the previous quarter. These stakes were worth over $73.6 million by the end of Q2. Ken Heebner’s Capital Growth Management is the leading stakeholder in Sunstone Hotel Investors, Inc. (NYSE:SHO), with 1.77 million shares worth $21.98 million.
On August 3, Sunstone Hotel Investors, Inc. (NYSE:SHO) announced earnings for Q2. The EPS beat estimates by $0.03 at -$0.01. The company’s revenue was $117.21 million, exceeding estimated EPS by $12.29 million.
9. Ryman Hospitality Properties, Inc. (NYSE:RHP)
Number of Hedge Fund Holders: 22
A hotel and resort REIT, Ryman Hospitality Properties, Inc. (NYSE:RHP) is one of the best hotel stocks to invest in. Ryman Hospitality Properties, Inc. (NYSE:RHP) focuses on acquiring and managing upscale convention centers and resorts. The REIT owns five of the largest non-gaming convention center properties in the US that operate under the Gaylord Hotels brand name, and are managed by Marriott International, Inc. (NASDAQ:MAR). In total, Ryman Hospitality Properties, Inc. (NYSE:RHP) has ownership of 2.8 million square feet of indoor and outdoor space in top-notch convention centers and leisure establishments across the United States.
At the end of Q2, 22 hedge funds tracked by Insider Monkey were long Ryman Hospitality Properties, Inc. (NYSE:RHP). This is compared to the same number of hedge funds in Q1. Mario Gabelli’s GAMCO Investors is the biggest stakeholder in Ryman Hospitality Properties, Inc. (NYSE:RHP), with 1.45 million shares valued at $114.76 million.
Here is what Bireme Capital has to say about Ryman Hospitality Properties, Inc. (NYSE:RHP) in their Q4 2020 investor letter:
“In Q3, we purchased shares of Ryman Hospitality Properties (RHP), another company whose business and stock price were temporarily crushed by the pandemic. Ryman is an owner of large, convention-focused hotels under the “Gaylord” banner. Prior to 2020, the company had grown EBITDA every year since 2012, and has a demonstrated ability to profitably develop new hotels from scratch, having opened 5 since the year 2000. These hotels dominate their niche in the conference and convention segment: they have more meeting space square footage than almost all of their competitors.
Ryman also operates a fast-growing music venue business, which includes the Ryman Auditorium, the Grand Ole Opry, and a chain of bar and concert venues called “Ole Red.” These comprise RHP’s “entertainment” segment, which grew EBITDA from $14.5m in 2011 to $58m in 2019, an 18% CAGR.
We think the company will do more than $300m of free cash flow in 2022. When we were buying RHP at the end of Q3, it had a market cap of $2.0b, a mere 6x multiple of FCF. While the market cap has recently increased to $3.7b, we still find the valuation very attractive for a company with their track record.”
8. Hyatt Hotels Corporation (NYSE:H)
Number of Hedge Fund Holders: 23
Hyatt Hotels Corporation (NYSE:H) owns and franchises luxury hotels, resorts, vacation establishments. The luxury hospitality industry mega-corporation is traded as a Russell 1000 Component.
Out of the 873 hedge funds tracked by Insider Monkey, 23 funds reported owning stakes in Hyatt Hotels Corporation (NYSE:H), similar to Q1.
Baron Funds mentioned Hyatt Hotels Corporation (NYSE:H) in its Q2 2021 investor letter. Here is what they said:
“Shares of Hyatt Hotels Corp., a global hotelier, declined in the quarter due to investor concerns around a new, more contagious variant of COVID-19 and a reopening of Asia and Europe that was slower than market forecasts. While the slowed reopening is a disappointment, Hyatt’s domestic business and group bookings are starting to return, and we think conditions will normalize by 2022, at least domestically. The company remains on track with its asset sale program as the hotel transaction market returns to pre-pandemic valuations, which should make Hyatt a more valuable, fee-based business.”
7. Host Hotels & Resorts, Inc. (NASDAQ:HST)
Number of Hedge Fund Holders: 24
Host Hotels & Resorts, Inc. (NASDAQ:HST) is a S&P 500 company and the largest American lodging REIT. Host Hotels & Resorts, Inc. (NASDAQ:HST) owns and manages luxury and upper-upscale hotels, being a self-managed and self-administered REIT. Host Hotels & Resorts, Inc. (NASDAQ:HST) invests in geographically diverse assets, including 84 hotels across 20 top US markets.
Out of the hedge funds tracked by Insider Monkey, 24 funds were bullish on Host Hotels & Resorts, Inc. (NASDAQ:HST) at the end of the second quarter.
On October 18, Wells Fargo analyst Dori Kesten upgraded Host Hotels & Resorts, Inc. (NASDAQ:HST) from Underweight to Equal Weight, with an $18 price target. The analyst believes that Host Hotels & Resorts, Inc. (NASDAQ:HST) is well-positioned to benefit from steadily increasing hotel demand, but its increasingly large operations will make revenue management critical, as opposed to economy hotels.
Like MGM Resorts International (NYSE:MGM), Marriott International, Inc. (NASDAQ:MAR), Hilton Worldwide Holdings Inc. (NYSE:HLT), and Hyatt Hotels Corporation (NYSE:H), Host Hotels & Resorts, Inc. (NASDAQ:HST) is one of the best hotel stocks to invest in.
White Brook Capital mentioned Host Hotels & Resorts, Inc. (NASDAQ:HST) in its Q3 2021 investor letter. Here is what they said:
“Shares of Host Hotels (HST) were also sold during the 3rd quarter for similar reasons as Cogent given a degradation in the prospect of a return in group leisure and business travel. The capital was similarly redeployed.”
6. Wyndham Hotels & Resorts, Inc. (NYSE:WH)
Number of Hedge Fund Holders: 24
Wyndham Hotels & Resorts, Inc. (NYSE:WH) ranks sixth on our list of the 11 best hotel stocks to invest in. Headquartered in New Jersey, Wyndham Hotels & Resorts, Inc. (NYSE:WH) is one of the leading franchisors globally, with its hotels spread across 9280 locations worldwide. Wyndham Hotels & Resorts, Inc. (NYSE:WH)’s portfolio of assets includes 20 hotels, such as Baymont, Days Inn, Howard Johnson, La Quinta, Ramada, Super 8, Travelodge, and Wyndham Grand. Wyndham Hotels & Resorts, Inc. (NYSE:WH) is traded as a S&P 400 Component.
At the end of Q2, 24 hedge funds were bullish on Wyndham Hotels & Resorts, Inc. (NYSE:WH). This is compared to the same number of hedge funds in Q1.
JPMorgan analyst Joseph Greff kept an Overweight rating on Wyndham Hotels & Resorts, Inc. (NYSE:WH)’s shares, raising the price target to $86 from $83 on October 18, citing the US lodging recovery in Q3 as the reason for the rating.
Like MGM Resorts International (NYSE:MGM), Marriott International, Inc. (NASDAQ:MAR), Hilton Worldwide Holdings Inc. (NYSE:HLT), and Hyatt Hotels Corporation (NYSE:H), Wyndham Hotels & Resorts, Inc. (NYSE:WH) is a notable hotel stock to invest in.
Click here to continue reading and see 5 Best Hotel Stocks To Invest In.
Disclosure: None. 11 Best Hotel Stocks To Invest In is originally published on Insider Monkey.
Here’s why you shouldn’t shy away from investing, even if you only have a small amount of money – CNBC
Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We may receive a commission when you click on links for products from our affiliate partners.
Robert G. Allen, author of several best-selling personal finance books once asked, “How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.”
Using a savings account and an emergency fund for short-term expenses is important, but investing for retirement and the future is arguably just as crucial. While it may feel pointless to start investing if you don’t have much money, it can still be incredibly worthwhile. Think of it this way: few, if any, start investing with a large sum of money. For many, growing your wealth happens over years and years and is a slow and steady process.
By starting slow, even with a small amount of cash, you can begin to establish the habit of investing regularly, which will hopefully lead to a large nest egg in the future.
Select details why you should start investing today, even if you don’t have a large amount of money to start with.
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Why you should start investing today
Investing can be an intimidating word and concept for many reasons. There are a large amount of terms, tax implications, planning and investments to understand — along with knowing there will be market fluctuations making your net worth go up and down. But by understanding the mere basics, you can begin to grow your wealth quickly.
Corbin Blackwell CFP, senior financial planner at wealth management app Betterment, told Select that, “Investing is one of the best ways to grow your long-term wealth and reach major goals for things like retirement, buying a home and college funds.”
He also said that beginning the investing journey is often the most difficult part, as growth will be limited at first. He added that, “Tools available today, like digital investment advisors, make it easier than ever to get started.”
And by getting started today, you have the best asset that any investor can have on their side: time.
By letting your money sit in the market longer, you allow for compound interest to take over — which is when your interest and gains stack on top of one another. Blackwell gives an excellent example of the power of compound interest:
“Let’s say you invested just $100 today and saw a 5% annual return – thanks to the power of compound interest, if you don’t touch your investment, in 30 years you’d have $430.”
That’s an ok return, but imagine if you invested $100 monthly for 30 years into a common index fund. An index fund is a fund that has a group of companies within it, and tracks the performance of the entire group. These groups can range in focus including the size of each company, the respective industries, location of the companies, type of investment and more. One of the most popular indices, the S&P 500, consists of the 500 largest companies in the United States, making it a relatively safe investment because of its exposure to hundreds of companies and dozens of industries.
Many consider this a ‘boring investment,’ but the results the index has produced are nothing to balk at.
The average yearly return of the S&P 500 over the last 30 years is 10.7%, but even at a conservative return of 8%, you would have over $146,000 if you invest $100 a month for 30 years. The impressive part is that your total contributions would be $36,000, which means your money would have quadrupled in value in 30 years (note that past performance does not guarantee future success).
In short, the more money and more time you have in the market, the more likely you are to grow your investment funds.
S&P 500 Index performance during the Covid-19 pandemic
How to begin investing
If growing your net worth is your goal, you can get started in just a few minutes. Here are a few things to consider:
Build a budget that works for you
Starting to invest with a small amount of money isn’t an issue. However, it’s important to know how much you can afford to invest, as you don’t want to harm your personal finances in the process. Blackwell urged, “as long as you aren’t using money [to invest] that you need to cover day to day expenses such as food, rent and high interest debt payments, I recommend you start investing.”
A budget gives you a way to see where your money is going each month, where you can possibly cut back and how much you can invest each month. You can set up a budget for yourself using a budgeting app, a spreadsheet or even a simple pen and paper. I use Personal Capital to manage my budget because I’m able to track my expenses and monitor the performance of my investments in one convenient app.
Regardless of which budgeting method works best for you, it’s important to have an established budget to understand how much you can invest each month without cutting into the money allocated towards your monthly essentials.
Select an investing “bucket” and investments
There are many different buckets you can fill with money, such as a Roth IRA, HSA, 529 or taxable brokerage account. Each of these accounts serve a different purpose and have different tax implications, so be sure to select one that makes sense for you. For example, a Roth IRA is great if you plan on being in a higher tax bracket when you retire — you’ll contribute after-tax income but all gains are tax-free after 59 and a half years old.
Once you select the type of account you want to invest within, you then must decide what type of investment to put your money into. This is the puzzling part for many, as there are an abundance of options, from ETFs to viral meme stocks to index funds and many more in-between.
For long term investors, index funds are a great solution as they have low fees, are low maintenance, provide wide exposure and many provide stable returns. In fact, John Bogle, the founder of Vanguard, summarizes the effectiveness of index funds in one analogy: “Don’t look for the needle in the haystack. Just buy the haystack.”
Regardless of which investment you choose, it’s important to evaluate your risk-tolerance and understand what you’re investing in. Be sure to do your own research, and potentially connect with an accredited financial advisor to discuss the best options.
Automate your investing
Once you determine how much you can and want to invest each month, it’s important to turn on auto-investing.
This is where money is taken out of your checking account each month and automatically deposited into your choice of investments. Choosing this option is important because it takes the leg work away from needing to invest each month. Additionally, studies show that we are built for ‘present bias‘ — which is the idea that the farther away something is, the less important it is. Essentially, it’s much easier to spend now, rather than save for later. Automating transfers from your checking account or paycheck into an investment account will help ensure you don’t spend money that you were planning on investing.
By automating your investments, you will be passively growing your nest egg and getting yourself closer to reaching your financial goals.
You may also want to consider a robo-advisor like Betterment or Wealthfront. Robo-advisors work by gathering information from you on your financial situation and investing goals to suggest investments that fit your needs and risk tolerance. After supplying this information, the robo-advisor will build you a portfolio based on your answers through computer algorithms and advanced software, with little to no work on your end. Plus, it will rebalance your investments over time based on your goals and changes in the market.
Best brokerages to get started
To begin investing, you’ll need to select a brokerage account provider. These brokerages serve as the intermediary between you and the seller of the stock or security you want to purchase.
When deciding on the best brokerage for you, be sure to consider these factors:
- Fees: These can range from minimum deposits, stock trade fees, mutual fund trade fees and more. Be sure to select a no- or low-fee brokerage.
- Ease of use: Each brokerage has a different website and mobile app. While this is much more subjective, it’s advantageous to use a brokerage with a web interface and experience you understand and enjoy.
- Promotions: From time to time, brokerages will offer bonuses to new users. For example, I recently signed up for a Fidelity brokerage account and earned a $100 bonus after depositing $50.
Below are a few of our favorite online brokerages:
Information about Fidelity accounts has been collected independently by Select and has not been reviewed or provided by the issuer prior to publication.
$0 for stocks, ETFs, options and some mutual funds
Stocks, bonds, fractional shares, ETFs, mutual funds, options
$0 commission on stocks, options and ETFs
Includes stocks, bonds, mutual funds, ETFs, options, Forex, and futures
Information about the Vanguard accounts has been collected independently by Select and has not been reviewed or provided by the issuer prior to publication.
Stocks, bonds, ETFs, mutual funds, options, CDs
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Increased scrutiny will make greenwashing tougher – Investment Executive
The global conversation around climate and social issues will make engaging in greenwashing more difficult, says Jacob Hegge, an investment specialist with J.P. Morgan Asset Management.
Hegge said the growing popularity of bonds that focus on environment, social and governance (ESG) excellence is helping to identify bad-faith players who try to appear more conscientious than they are.
He allowed that investing in green initiatives can be confusing, given unclear and sometimes conflicting definitions, but standardization is coming.
“It’s great to see all the activity around ESG, but a consequence of this increased activity means a greater dispersion in terminology,” he said. “As ESG investing continues to grow, we’d expect to see more standardization. But until then, it’s important to understand that navigating the landscape can be difficult.”
Hegge said investors should test the terminology used to define green projects.
“Is the data or testing methodology readily available for investors to use? Is it easy to understand? Are the definitions explained and easily accessible? These are things investors need to be looking out for,” he said. “It comes down to transparency and consistency. And as ESG investing continues to grow globally, we expect this standardization to be more prominent in the market.”
The hot ESG market makes it all the more necessary for investors to know what they’re buying, Hegge said. “We do think it’s important for investors to look under the hood and pay attention to what investment firms are saying when they title a fund as being ESG. They really need to make sure that investment products are staying true to the prospectus.”
Hegge said green and sustainability-linked bonds are being issued at record levels, and issues are likely to increase.
“This year alone, green social sustainability and sustainability-linked bonds are expected to reach a combined issuance of over a trillion [U.S. dollars], which is doubled compared to last year,” he said. “And … some expect that investment in green bonds will actually double and reach US$1 trillion for the first time in a single year by the end of next year.”
Hegge said many companies are at the beginning of their green journeys, and their success in meeting ambitious targets will reflect their commitment level.
“Don’t narrow your opportunity set by being put off by low ESG scores. The important part is whether these scores are improving over time. You can find sustainable bonds even if they don’t have a sustainable label in the market,” he said.
“The global fixed-income market is very large and there are a lot of opportunities out there.”
This article is part of the Soundbites program, sponsored by Canada Life. The article was written without sponsor input.
Halifax's Skinfix Secures Major Investment – Huddle Today
Reading Time: 2 minutes
HALIFAX—Halifax beauty company Skinfix has secured investment from a big name in the beauty world; Stride Consumer Partners has announced a minority investment in the company.
The deal is the first investment from the new private equity firm, which was started by a former team from Castanea Partners. Castanea is known for investing in and exiting with well-known beauty brands like Urban Decay, First Aid Beauty, and Tatcha.
The terms of the investment were not disclosed but the news comes as Skinfix is in the middle of a massive growth year. According to CEO Amy Gordinier, the company has grown by 300 percent in 2021, compared to last year.
In an interview with Huddle, Gordinier said she’s thrilled to “bring an investor to the table that has deep beauty experience” and put Skinfix in a position to scale even more quickly.
From Kitchen Table To Sephora
Gordinier founded Skinfix in 2014, after meeting the great-great-granddaughter of an English pharmacist. The woman, Karen Warren, was using a 150-year-old formula to make a skin balm in her kitchen.
Gordinier rebranded the balm and helped Skinfix expand into a host of products like its Barrier+ Triple Lipid-Peptide line and Resurface+ line.
In 2019, the company officially launched in Sephora and quickly became one of the beauty giant’s best-selling skincare brands.
Gordinier says that journey makes Skinfix a fitting first investment for Stride.
“Some of these folks, through Castena, invested and exited some big names in the beauty industry. So, they have really good experience in scaling brands of this size and recognizing brands that have a lot of potential,” she said.
Gordinier says she’s excited to draw from Stride’s experienced team to help scale and market Skinfix.
She said Sephora will remain Skinfix’s primary customer and focus but that she sees a big opportunity in the direct-to-consumer market.
“Just investing a little bit of money and effort into our DTC we’ve almost tripled it year on year, so there’s tremendous potential with our DTC business that just requires an investment,” she said.
Along with more focus on its DTC market, Gordinier said Skinfix will also enter a new product category in January when it launches a line of acne products.
Building A Global Brand From Atlantic Canada Is Possible
Gordinier said Skinfix’s quick growth, and the interest it has attracted from big-name investors like Stride, is proof that an Atlantic Canadian company can compete on the global stage.
“These folks are in beauty and private equity and consumer private equity in the US, and seeing hundreds of opportunities. And they chose Skinfix as their first and only investment so far—and their processes is pretty rigorous,” she said.
“I think it’s exciting for the region, and for aspiring entrepreneurs, and I think it just sort of reinforces that we need to think globally and consider ourselves worthy of attention.”
She encouraged other Nova Scotian companies to “think outside of Canada.”
“Hopefully [what we’ve done] helps to inspire people to think big and to go for it,” she said.
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