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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Top Online Gambling Stocks

by Fred Fuld III

Sports are coming back. Online betting is increasing. What companies are benefiting?

Two years ago, the Supreme Court allowed betting on sports in all states, with each state deciding whether to allow this form of gambling or not. Several states have already legalized online sports betting. Many more states are considering legislation. These changes should lead to more online gambling, and a transition from illegal gambling to legal betting.

Even NBC Sports Broadcaster Jim Kozimor mentioned in an interview that sports betting will be an extremely strong growth industry.

So if you are looking for a way to profit from sports gambling, you should look at the stocks that should benefit from the online betting on sports events.

DraftKings (DKNG) is one of the largest pure plays in the online sports betting arena. This was one of the stocks that was created from a SPAC. Revenues for this $20.6 billion market cap company were up 23.6% for the latest quarter. Earnings are minimal giving it a price to earnings ratio of over 1000.

Flutter Entertainment (PDYPY) is one of the largest daily fantasy sports providers and  a leader in the legal sports betting market. The company was formerly named Paddy Power Betfair. This $25 billion market cap company trades at 47.5 times earnings.

Boyd Gaming Corp. (BYD), an operator of a company that runs over a dozen casinos across the United States, offers its B Connected Sports app in order to take advantage of increased legalization. The stock trades at 30.9 times  forward earnings.

The following is a list of over 20 companies that may benefit from online sports betting and Internet gambling, sorted in order of market cap.

Company Symbol Mkt Cap in Millions Yield
Las Vegas Sands LVS 36,372 4.59%
Marriott International MAR 31,134 1.21%
Paddy Power Betfair [Flutter Ent.] PDYPY 24,970 0.00%
DraftKings DKNG 20,689 0.00%
MGM Resorts MGM 11,259 0.95%
Penn National Gaming PENN 10,680 0.00%
Gaesar’s Entertainment CZR 9,604 0.00%
Wynn Resorts WYNN 7,940 2.04%
Churchill Downs CHDN 7,154 0.39%
GVC Holdings GMVHF 6,103 7.42%
Scientific Games SGMS 3,475 0.00%
Boyd Gaming BYD 3,470 0.00%
William Hill WIMHY 2,544 0.00%
International Game Technology IGT 2,367 7.21%
Madison Square Garden Ent. MSGE 1,661 0.00%
888 Holdings EIHDF 851 2.21%
Gan Ltd GAN 485 0.00%
GameHost GHIFF 104 0.00%
Millennial Esports MLLLF 58 0.00%
Bragg Gaming BRGGF 26 0.00%

Maybe some of these stocks will win big.

Disclosure: Author owns DKNG.