10 Best Hospitality Stocks to Buy According to Hedge Funds

5. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Investors: 47

MGM Resorts International (NYSE:MGM) is included among the Best Hospitality Stocks. It owns casinos in China, Detroit, and Atlantic City and controls the majority of the Las Vegas casino market. Although its primary market is still Las Vegas, it is growing internationally. In 2030, it wants to build a $9 billion casino resort in Osaka, Japan. The firm has aggressively expanded its online betting business beyond its physical casinos with the launch of BetMGM in 2021. BetMGM made $1 billion in revenue in the first half of 2024, showing the success of the company’s investment in digital gambling. Its position in the conventional and online gaming businesses is boosted by this strategic diversification.

MGM Resorts International (NYSE:MGM) smashed all prior records by reaching all-time highs in hotel revenue, F&B revenue, domestic slot win, and consolidated net revenues in 2024.  The company had a strong start to 2025, as seen by increased revenue from domestic operations in January and growth forecasts for ADR throughout the year. Operations in Las Vegas were particularly noteworthy, setting new records for December slot handle and win, which contributed to a successful fourth quarter.

MGM Resorts International (NYSE:MGM) had its highest-ever convention reservations in December, surpassing the previous record by 43%. Meanwhile, the firm announced its highest-ever full-year segment-adjusted EBITDA in December, and its market share in China grew to over sixteen percent.

Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its Q4 2024 investor letter:

“MGM Resorts International (NYSE:MGM) – Hospitality and gaming company MGM Resorts was a top detractor for the quarter and the year. Despite relatively strong execution by the company and opportunistic repurchases of discounted shares, the market did not like the company’s quarter-to-quarter volatility, especially in the second half of the year. When making the necessary adjustments, MGM’s core Las Vegas properties continued to grow nicely if boringly in the low-mid-single digit range during the year. MGM remains one of our larger share repurchasers in the portfolio, demonstrating its commitment to shareholder returns. The company’s hidden assets in online gaming and Asia also showed progress as the year went on. We remain confident in the management team, led by CEO Bill Hornbuckle, as they navigate these challenges and focus on long-term value creation.”