Investing in Comfort: Top Hotel Stocks for Your Portfolio

Hotels typically see a significant boost in business during the summer months, primarily due to the favorable weather conditions. The warm temperatures and sunny days make it an ideal time for travel, encouraging people to take vacations. Destinations known for their beaches, outdoor activities, and scenic beauty become particularly popular, leading to higher occupancy rates in hotels.

Another key factor driving hotel business in the summer is the school break schedule. With children out of school, families are more likely to plan longer trips and vacations. This period allows families to travel together without the constraints of school schedules, resulting in a surge in bookings for family-friendly accommodations and resorts.

In addition to the weather and school breaks, summer is also a time for numerous events and festivals. Many cities and tourist spots host special events, concerts, and festivals during the summer, attracting even more visitors. Hotels benefit from this influx by offering special packages and promotions tied to these events, further increasing their occupancy and revenue.

The strong summer demand has positive implications for hotel stocks, making them a worthwhile investment. Hotel stocks have shown impressive performance, often outpacing broader market indices during peak travel seasons. This demonstrates the strong nature of the hospitality industry and its capacity to generate substantial returns for investors.

Listed below are the top five travel stocks:

  1. Choice Hotels International, Inc. (CHH) is one of the largest and most successful hotel franchises globally, currently franchising over 7,000 hotels. The company offers a wide range of accommodations, from upscale to economy, and under various brand names. Known for its franchise model, Choice Hotels continues to expand its footprint and enhance its services to cater to a diverse clientele, maintaining a significant presence in the hospitality industry.
  • Hyatt Hotels Corporation (H), commonly known as Hyatt Hotels & Resorts, is a leading American multinational hospitality company headquartered in the Riverside Plaza area of Chicago. Established in 1957, Hyatt operates in the Travel and Leisure sector, offering a diverse range of accommodations from luxury to economy. The company became privately held by the Pritzker family in the late 1970s and early 1980s before going public again. Today, Hyatt is recognized for its family-oriented corporate culture, extensive portfolio of properties, and a strong presence in the global hospitality market, with revenues reaching $6.667 billion and employing around 51,000 people worldwide.
  • Hilton Worldwide Holdings Inc. (HLT) is a leading global hospitality company renowned for its extensive portfolio of 23 world-class brands, including luxury, full-service, and extended-stay hotels. With more than 7,600 properties and nearly 1.2 million rooms across 119 countries and territories, Hilton has established itself as a dominant force in the lodging sector.
  • Marriott International, Inc. (MAR) is a leading global hospitality company with nearly 8,700 hotel properties across 139 countries and territories. Marriott includes brands such as Ritz-Carlton, Sheraton, and Westin. The company is committed to delivering exceptional guest experiences through innovation, luxury, and high-quality service.
  • Wyndham Hotels & Resorts, Inc. (WH) is the world’s largest hotel franchisor by the number of properties, with approximately 9,200 hotels across over 80 countries. Headquartered in Parsippany, New Jersey, Wyndham offers a diverse portfolio of hotel brands ranging from economy to upscale, including names such as Days Inn, Super 8, Ramada, and Wyndham Grand. Known for its comprehensive loyalty program and user-friendly amenities, Wyndham focuses on providing comfortable, accessible stays for both business and leisure travelers.
CompanyCompany SymbolPrice to BookPEGPEPrice to SalesForward PEYield
Choice Hotels International, Inc.CHH829.293.7624.243.5316.61.02%
Hyatt Hotels CorporationH4.081.2522.92.0734.390.41%
Hilton Worldwide Holdings IncHLTNA2.7843.684.7724.390.31%
Marriott International, Inc.MARNA3.5923.862.7421.450.88%
Wyndham Hotels & Resorts IncWH8.519.1924.944.0815.082.09%

During the summer months, hotels thrive thanks to a combination of factors. The pleasant weather, coupled with school breaks, events, and festivals, drives a surge in business. This seasonal demand not only benefits hotel operations but also has a positive impact on hotel stocks. Leading hotel chains such as Choice Hotels, Hyatt, Hilton, Marriott, and Wyndham capitalize on this demand with their extensive global presence, offering a diverse range of accommodations tailored to meet the needs of various travelers.

Disclosure: Author had no positions in any of the above at the time the article was written.

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Stocks Going Ex Dividend in March 2018

Here is our latest update on the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the quarterly dividend amount, and annual yield.

Bank of America Corporation (BAC) 3/1/2018 0.12
Hilton Worldwide Holdings Inc. (HLT) 3/1/2018 0.15
Pepsico, Inc. (PEP) 3/1/2018 0.805
Jack In The Box Inc. (JACK) 3/2/2018 0.4
Kellogg Company (K) 3/2/2018 0.54
Rocky Mountain Chocolate Fact (RMCF) 3/5/2018 0.12
Home Depot, Inc. (HD) 3/7/2018 1.03
Coca-Cola Company (KO) 3/14/2018 0.39
Nasdaq, Inc. (NDAQ) 3/15/2018 0.38

The additional ex-dividend stocks can be found here at wstnn.com. (If you have been to the website before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at HERE or WStNN.com. Most of the lists are free.

Dividend definitions: Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.