12 Best Hotel Stocks To Buy According to Analysts

3. MGM Resorts International (NYSE:MGM)

Analyst Upside Potential: 48.60%

Number of Hedge Fund Holders: 46

MGM Resorts International (NYSE:MGM) is a global entertainment and gaming company that owns international and domestic locations. Its segments include Las Vegas Strip Resorts, MGM China, and Regional Operations. The Las Vegas Strip Resorts segment operates casino resorts, including MGM Grand Las Vegas, Mandalay Bay (including Delano and Four Seasons), Luxor, New York-New York (including The Park), and others. Its Regional Operations segment operates around 16 domestic casino properties.

The company reported 43% more bookings in December than in its prior record month, reflecting a promising trend for its operations. It also grew its market share to over 16% in December. MGM Resorts International (NYSE:MGM) sees considerable potential to grow in 2025, with all its properties live for a full year of bookings. It holds a sustainable market share driven by its focus on premium mass markets and strong product innovation teams.

MGM Resorts International (NYSE:MGM) also reported strong business in virtually every aspect of BetMGM, its online betting joint venture with Entain. It drove over $2 billion in top-line growth in net revenue from operations, accelerating from 6% in the first half of the year to 19% in the second half. Management expects this momentum to continue in 2025, with net revenues from operating reaching a range between $2.4 billion and $2.5 billion and EBITDA inflecting positive, representing an increase of approximately $250 million year-over-year.

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.”