10 Best Hospitality Stocks to Buy According to Hedge Funds

4. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Investors: 48

VICI Properties Inc. (NYSE:VICI) is a real estate investment trust headquartered in the US. It owns and acquires gambling, hotel, wellness, entertainment, and leisure locations under long-term triple net leases. It has around 93 experiential assets in a geographical portfolio that includes approximately 54 gaming properties and approximately 39 other experiencing properties in the US and Canada, such as the Venetian Resort Las Vegas, Caesars Palace Las Vegas, and MGM Grand.

The company recently revealed its Q4 2024 profits, showing that its revenues of $976 million were 4.7% higher than those of the same time the previous year, making it one of the Best Hospitality Stocks on our list. Earnings per share fell 19.2% to $0.58, while net income available to common stockholders decreased 17.8% year over year to $614.6 million. Changes in the CECL allowance for the quarter ending December 31, 2024, were the main cause of this decline. Moreover, VICI Properties Inc. (NYSE:VICI) formed a new partnership with Indigenous Gaming Partners (IGP) due to IGP purchasing the operational assets of PURE Canadian Gaming. The current master lease for these sites was also amended as part of the arrangement.

Investors are interested in VICI Properties Inc. (NYSE:VICI) because of its unique business strategy. Although its extensive involvement in the gambling industry may seem dangerous, casinos have a history of surviving economic downturns. Long-term leases are used by the corporation to secure tenants, and the highly regulated casino industry makes migration difficult, which adds even more stability. Even during disruptions like the COVID-19 epidemic, which affected the travel, hospitality, and gaming industries, the firm has been able to sustain full occupancy since its initial public offering in 2018. Moreover, a large number of its leases are based on the consumer price index, which enables rental modifications to reflect inflation.