10 Most Undervalued Hotel Stocks To Invest In Now

6. VICI Properties Inc. (NYSE:VICI)

Forward P/E: 11.25

Analysts’ Upside Potential: 12.04%

VICI Properties Inc. (NYSE:VICI) is a real estate investment trust (REIT) that owns a portfolio of hotels, casinos, and other entertainment destinations. Among its most notable properties are iconic destinations like Caesars Palace, MGM Grand, and the Venetian Resort in Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip.

The company boasts a diverse portfolio of 93 experiential assets, which includes 54 gaming properties and 39 other experiential properties across the United States and Canada. VICI Properties Inc.’s (NYSE:VICI) portfolio spans approximately 127 million square feet, featuring around 60,300 hotel rooms and over 500 restaurants, bars, nightclubs, and sportsbooks.

In the third quarter of 2024, VICI Properties Inc. (NYSE:VICI) reported total revenues of $964.7 million, reflecting a 6.7% increase compared to the same quarter in the previous year. Net income attributable to common stockholders rose significantly by 31.7%, reaching $732.9 million. The company also declared a quarterly cash dividend of $0.4325 per share, which is a 4.2% increase year-over-year, showcasing its commitment to returning value to shareholders.

Over the past five years, VICI Properties Inc. (NYSE:VICI) has demonstrated strong growth, with revenues increasing at a compound annual growth rate (CAGR) of 33% and net income growing at a CAGR of 36%. This consistent performance indicates robust management and strategic positioning within the industry.

Additionally, analysts currently recommend VICI stock as a buy, with a median one-year price target suggesting a potential upside of 12% from its current price.

This combination of strong financial results and positive market sentiment makes VICI Properties Inc. (NYSE:VICI) an attractive investment opportunity for those looking to invest in the hospitality and entertainment sectors.