10 Most Undervalued Hotel Stocks To Invest In Now

3. Wynn Resorts Limited (NASDAQ:WYNN)

Forward P/E: 16.05

Analysts’ Upside Potential: 34.34%

Wynn Resorts Limited (NASDAQ:WYNN) is an American company that develops and operates high-end hotels and casinos. The corporation owns and operates Wynn Las Vegas, Encore Boston Harbor, Wynn Macau, and Wynn Palace, Cotai. WYNN is one of the most undervalued stocks in the hotels, resorts, and casinos industry.

The company has reported an impressive financial performance for the third quarter of 2024, with operating revenues reaching $1.69 billion, a slight increase from $1.67 billion in the same period last year. The third quarter results reflect strong demand, strong mass gaming win in Macau, and solid non-gaming performance in Las Vegas. Wynn Resorts Limited (NASDAQ:WYNN) managed to grow its hotel revenue by 5%.

The company is making strategic investments. In the third quarter of 2024, Wynn Resorts Limited (NASDAQ:WYNN) contributed $18.2 million of cash into a 40%-owned joint venture that is constructing the Wynn Al Marjan Island development in the UAE, which is expected to open in 2027. The company has already invested $532.6 million into this project, viewing it as a future tourism hotspot that could significantly enhance long-term cash flow.

Wynn Resorts Limited (NASDAQ:WYNN) is also focused on returning capital to shareholders. The company increased its share repurchase authorization to $1 billion. This move signals confidence in their financial health and future growth potential.

Additionally, the company continues to innovate its offerings. In the Q2 2024 earnings call, the management shared that Wynn Resorts Limited (NASDAQ:WYNN) is enhancing its food and beverage offerings with innovative concepts. The company has renovated four venues at Wynn Palace and introduced the new Drunken Fish restaurant at Wynn Macau. Additionally, a destination food hall is set to open in mid-2025 at Wynn Palace, promising an exciting dining experience. In the casino sector, Wynn Resorts Limited (NASDAQ:WYNN) is revitalizing the exclusive Chairman’s Club at Wynn Macau and planning a similar upgrade for the Chairman’s Club at Wynn Palace.

Overall, Wynn Resorts Limited’s (NASDAQ:WYNN) strategic investments in new developments, commitment to shareholder returns, and focus on enhancing customer experiences make it an attractive stock for investors looking for opportunities in the hospitality industry.