10 Best Hospitality Stocks to Buy According to Hedge Funds

6. Wyndham Hotels & Resorts, Inc. (NYSE:WH)

Number of Hedge Fund Investors: 42

One of the biggest hotel franchising firms in the world and the Best Hospitality Stocks, Wyndham Hotels & Resorts, Inc. (NYSE:WH) has a range of midscale or cost-effective brands and partners. It targets leisure tourists in areas with little competition, operating in secondary or tertiary markets. Its franchise concept reduces the requirement for significant financing or capital expenditures.

As of December 31, 2024, Wyndham Hotels & Resorts, Inc. (NYSE:WH) has 903,000 rooms under 20 brands. The largest brand, Super 8, accounts for over 18% of total rooms, followed by Days Inn (13%) and Ramada (14%). The company’s extended stay and lifestyle brands, which appeal to tourists who want to experience the local way of life in a particular place, have grown during the last few years. The business added almost 90,000 rooms when it concluded its acquisition of La Quinta in the second quarter of 2018. In the spring of 2022, the firm introduced ECHO, a new extended-stay economy scale segment concept. The United States accounts for 56% of total rooms.

Wyndham Hotels & Resorts, Inc. (NYSE:WH) opened 69,000 rooms in 2024, a 4% YoY growth and the highest yearly organic expansion in the company’s history. This was accomplished in the fourth quarter of 2024. In line with forecasts, net room growth was 4%, while adjusted EBITDA and EPS climbed by 7% and 10%, respectively. Strong franchisee engagement was shown by the improvement in global retention to 95.7% YoY. International net rooms rose 7% year over year, with substantial growth in Asia Pacific, Latin America, and EMEA. The demand for weekend leisure and blue-collar midweek business drove a 5.3% gain in U.S. RevPAR.

To reach the $4.5 trillion debit market, Wyndham Hotels & Resorts, Inc. (NYSE:WH) launched a co-branded debit card with Galileo, and its membership reached 114 million, up 8% year over year.