In this article, we will look at the 12 Best Hotel Stocks To Buy According to Analysts.
Overview of the Hospitality Industry
The hospitality industry is undergoing a significant transformation after the post-Covid travel rebound. According to a report by Zion Market Research, the global hotel market is valued at $1.37 trillion as of 2023. It is expected to reach $2.99 trillion by 2032, growing at a compound annual growth rate of 9.14% between 2024 and 2032. This growth is attributed to the surging travel demand post-Covid, resurgence in leisure and business activities, and increased disposable incomes.
Released in January 2025, the “State of the Hospitality Market Report 2024” provides a deeper view of the global hospitality industry. The report showed a significant rise from $3.44 trillion in 2023 to $3.98 trillion in 2024, translating to a compound annual growth rate of 15.5%. This notable growth highlights positive trends across transportation and infrastructure improvements, the increasing influence of international hotel chains, and the growing popularity of experiential travel. In addition, the rising economic influence of the middle class in emerging markets and ballooning demand for unique experiences is further boosting this expansion. According to the report, North America is the most significant force in the hospitality market as of 2023. However, the Asia-Pacific region is anticipated to grow fastest in the coming years.
The US hospitality industry reflects similar trends. According to a report by Mordor Intelligence, the industry is estimated to have a market size of around $247.45 billion as of 2025. It is anticipated to grow at a compound annual growth rate of 4.87% between 2025 and 2030, reaching $313.87 billion by the end of the forecast period.
Increased Optimism Among US Hotel Investors
A survey regarding US hotel investors’ sentiment conducted by the CBRE Group and released on January 28 showed increased positive optimism among hotel investors. Around 94% of those surveyed expressed intentions to maintain or increase their hotel investments in 2025, a rise from 85% last year. The most prominent reason behind this growth was an optimistic outlook for total returns and distressed investment opportunities. The central business districts (CBDs) and resorts were the most commonly favored location types for 2025 among investors. The most popular chain scales were the higher-priced options.
With these trends in mind, let’s examine the 12 best hotel stocks to buy according to analysts.
A modern hotel suite showing off the latest in hotel accommodations.
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 30 hotel stocks. We checked their upside potential, according to analysts, and then selected the top 12 most popular stocks among elite hedge funds as of Q3 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analysts’ average upside potential. Please note that the analyst upside potential data is as of February 12, 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Hotel Stocks To Buy According to Analysts
12. Summit Hotel Properties, Inc. (NYSE:INN)
Analyst Upside Potential: 15.12%
Number of Hedge Fund Holders: 20
Summit Hotel Properties, Inc. (NYSE:INN) is a real estate investment trust that owns premium-branded lodging properties with upscale operating models. Its portfolio comprises around 97 assets, of which 53 are wholly owned. The company has approximately 14,553 guestrooms in 25 US states, with most lodging properties concentrated in markets with multiple demand generators. Its guestrooms operate under franchise brands owned by Hyatt Hotels Corporation, Marriott International, Inc., InterContinental Hotels Group, and Hilton Worldwide.
The company grew the revenue per available room (RevPAR) for its same-store portfolio by 0.2% in fiscal Q3 2024, driven by a 1.2% growth in average rate. RevPAR in its urban and suburban hotels rose by 1.3% and 3.9%, respectively. These two location types represent around 75% of Summit Hotel Properties, Inc.’s (NYSE:INN) total room mix. Its weekday RevPAR grew by 1.9%, particularly in urban and suburban hotels, which rose nearly 5% during fiscal Q3 2024. These trends reflect improving business transient trends for the company.
Summit Hotel Properties, Inc. (NYSE:INN) is operating in a slightly positive top-line growth environment, which management broadly anticipates to persist throughout the end of the year. The expense outlook for 2025 is more favorable, as wage pressures have generally moderated. The company ranks 12th on our list of the 12 best hotel stocks to buy according to analysts.
11. VICI Properties Inc. (NYSE:VICI)
Analyst Upside Potential: 15.73%
Number of Hedge Fund Holders: 35
VICI Properties Inc. (NYSE:VICI) is a real estate investment trust that owns and acquires hospitality, gaming, and entertainment destinations, including MGM Grand, Caesars Palace Las Vegas, and the Venetian Resort Las Vegas. It owns around 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the US and Canada. Its portfolio features 60,300 hotel rooms and over 500 restaurants, bars, nightclubs and sportsbooks. The company also owns over 33 acres of underdeveloped or undeveloped land adjacent to and on the Las Vegas Strip.
VICI Properties Inc. (NYSE:VICI) reported a 6.7% year-over-year growth in its total revenues for fiscal Q3 2024, reaching $964.7 million. Its net income attributable to common stockholders also grew by 31.7% year-over-year to $732.9 million and, on a per-share basis, by 27.4% year-over-year to $0.70. The company is thus continually demonstrating the efficiency of its economic model. VICI Properties Inc. (NYSE:VICI) managed to deploy $230 million of capital through various loans and partner property growth fund agreements, marking fiscal Q3 2024 as the 13th quarter of consecutive capital deployment. The company ranks eleventh on our list of the 12 best hotel stocks to buy.
Here is what Baron Real Estate Income Fund has to say about VICI Properties Inc. (NYSE:VICI) in its Q2 2023 investor letter:
“We have slightly decreased our already modest exposure to the triple net gaming REIT VICI Properties Inc. (NYSE:VICI), an owner of quality gaming, hospitality, and entertainment properties. The company pays a 6% dividend that is well covered, has a strong track record of making accretive acquisitions, and has additional opportunities for growth in the years ahead.”
10. RLJ Lodging Trust (NYSE:RLJ)
Analyst Upside Potential: 21.37%
Number of Hedge Fund Holders: 20
RLJ Lodging Trust (NYSE:RLJ) is a self-administered and self-advised real estate investment trust that owns room-oriented, premium-branded hotels. It owns around 98 hotel properties with approximately 21,610 rooms in 23 US states and the District of Columbia. The company’s brand affiliations include Marriott, Hilton, and others.
The company’s 2% RevPAR growth in fiscal Q3 2024 once again exceeded the industry. Its growth rate was two times that of the industry, and it continues to be balanced between both occupancy and rate. This reflects the resilience of the company’s urban-centric portfolio, which lends it a competitive advantage and allows it to outperform. Its effective expense management also allowed it to drive EBITDA growth that exceeded its year-over-year RevPAR growth. RLJ Lodging Trust’s (NYSE:RLJ) hotels gained 100 basis points of market share in fiscal Q3 2024, representing the sixth consecutive quarter of outperformance.
RLJ Lodging Trust (NYSE:RLJ) is also making meaningful progress across its key initiatives. These include completing two conversions, successfully refinancing its near-term debt maturities, and increasing its quarterly dividend by 50%. It ranks 10th on our list, and its median price target of $9.47 implies an upside of 21.37% from current levels.
9. Pebblebrook Hotel Trust (NYSE:PEB)
Analyst Upside Potential: 24.12%
Number of Hedge Fund Holders: 23
Pebblebrook Hotel Trust (NYSE:PEB) is a real estate investment trust that owns urban and resort lifestyle hotels in the US. It owns around 46 hotels and resorts, translating to approximately 11,924 guest rooms across 12 urban and resort markets. The company has various hotel properties in its portfolio, including Chamberlain West Hollywood Hotel, George Hotel, Chaminade Resort & Spa, Embassy Suites San Diego Bay-Downtown, Hotel Monaco Washington DC, Estancia La Jolla Hotel & Spa, and others.
The company grew its same-property RevPAR by 2.2% in fiscal Q3 2024, driven by occupancy increases in both its urban and resort properties, gains at most of its recently redeveloped properties, and market share recovery. Total RevPAR increased by 2.7%, fueled by higher occupancy and greater out-of-room spending, which rose 3.8%. Although the broader industry experienced a normalizing of leisure travel trends, Pebblebrook Hotel Trust (NYSE:PEB) underwent occupancy gains due to the ongoing recovery of the business group and transient demand as well as strong urban and resort weekend leisure travel.
Pebblebrook Hotel Trust’s (NYSE:PEB) market outperformance highlights its portfolio’s success in driving market share. Its median price target of $12.09 implies an upside of 24.12% from current levels.
8. Ryman Hospitality Properties, Inc. (NYSE:RHP)
Analyst Upside Potential: 28.03%
Number of Hedge Fund Holders: 28
Ryman Hospitality Properties, Inc. (NYSE:RHP) is a lodging and hospitality real estate investment trust specializing in entertainment experiences and upscale resorts. Its holdings include Gaylord Palms Resort & Convention Center, Gaylord Opryland Resort & Convention Center, Gaylord Rockies Resort & Convention Center, and several others. Marriott International manages the company’s hotel portfolio, which includes around 11,414 rooms and over 3 million sq. ft. of total outdoor and indoor meeting space in the top leisure and convention destinations across the US.
The company is focusing on expanding its business through customer-informed investments replicable across its portfolio. It undertook a significant portfolio of its more than $1 billion capital program in 2024.
The positive results of these investments are beginning to materialize in Ryman Hospitality Properties, Inc.’s (NYSE:RHP) bookings production for 2026 and beyond. It reported consolidated total revenue of $550 million in fiscal Q3 2024, up 4.1% year-over-year and a third-quarter record. It also reported record Q3 consolidated adjusted EBITDA of $175 million, up 2.3% year-over-year. Its same-store hospitality segment also showed improvement, delivering a year-over-year RevPAR growth of 2.1% and total RevPAR growth of 4.2%. The company thus has strong operations and takes the eighth spot on our list.
Diamond Hill Small Cap Fund stated the following regarding Ryman Hospitality Properties, Inc. (NYSE:RHP) in its fourth quarter 2023 investor letter:
“Other top contributors included Rocky Brands and Ryman Hospitality Properties, Inc. (NYSE:RHP). Leading lodging and hospitality real estate investment trust Ryman Hospitality is benefiting from its recent acquisition of JW Marriott Hill Country in San Antonio. Fundamentals are also strong, as are forward booking trends, giving a boost to shares in Q4.”
7. Host Hotels & Resorts, Inc. (NASDAQ:HST)
Analyst Upside Potential: 28.91%
Number of Hedge Fund Holders: 25
Host Hotels and Resorts, Inc. (NASDAQ:HST) is a self-administered and self-managed real estate investment firm that owns upper-upscale and luxury hotels. It conducts its operations through Host L.P. The company’s hotels are located in resort and urban markets under various brand names, such as 1 Hotels, Alila, Four Seasons, JW Marriott, Fairmont, Ritz-Carlton, and others.
The company delivered 3.1% year-over-year comparable hotel total RevPAR growth in fiscal Q3 2024, reflecting the continued strength of its out-of-room revenue. Its comparable hotel RevPAR also grew 80 basis points in the quarter. Host Hotels and Resorts, Inc. (NASDAQ:HST) repurchased 3.5 million shares of stock through its common share repurchase program, bringing its total repurchases for the quarter to $57 million and underscoring confidence in its operations.
Host Hotels and Resorts, Inc. (NASDAQ:HST) holds a competitive market advantage due to its geographically diversified portfolio, investment-grade balance sheet, and continued reinvestments in its assets. It takes the seventh spot on our list of the 12 best hotel stocks to buy according to analysts.
6. Park Hotels & Resorts Inc. (NYSE:PK)
Analyst Upside Potential: 32.52%
Number of Hedge Fund Holders: 24
Park Hotels & Resorts Inc. (NYSE:PK) is a lodging real estate investment trust with a diverse portfolio of hotels and resorts. Its portfolio comprises 43 premium-branded hotels and resorts, containing over 26,000 rooms in prime US markets. Around 86% of the company’s rooms are upper upscale and luxury. The company’s operations are divided into consolidated hotels and unconsolidated hotels.
Its fiscal Q3 2024 results showed comparable RevPAR growth of over 3% compared to fiscal Q3 2023. This growth was attributed to the increasing demand trends at its hotels in Boston, New Orleans, and Chicago. Another growth driver for Park Hotels & Resorts Inc. (NYSE:PK) was strong performance at its Orlando and Key West hotels, which are continually benefiting from recently completely renovations. To continue this momentum, the company started over $200 million of comprehensive guestroom renovations at various other locations, including the Rainbow Tower at the Hilton Hawaiian Village Waikiki Beach Resort, the Palace Tower at the Hilton Waikoloa Village, and the Main Tower at the Hilton New Orleans Riverside.
Park Hotels & Resorts Inc. (NYSE:PK) also continued to execute its capital allocation strategies in fiscal Q3 2024, disposing of non-core assets (including the Hilton Oakland Airport), investing in its portfolio, and repurchasing an additional 2.5 million shares of its common stock for $35 million.
5. H World Group Limited (NASDAQ:HTHT)
Analyst Upside Potential: 35.03%
Number of Hedge Fund Holders: 28
H World Group Limited (NASDAQ:HTHT) operates multi-brand hotels. Its business operations are divided into two segments: Legacy DH and Legacy Huazhu. Its brand portfolio includes Midscale Hotels, Economy Hotels, Upscale Hotels, and others. The company operates its hotels under three models: owned, leased, and franchised. Huazhu Group Limited (NASDAQ:HTHT) owns Joya Hotel, Ni Hao Hotel, JI Hotel, Orange Hotel, and various others.
As of September 30, 2024, it has a total of 10,845 hotels or 1,062,546 hotel rooms in operation. The company reported a 10.7% year-over-year growth in its hotel turnover in fiscal Q3 2024. Hotel turnover from the Legacy Huazhu segment grew by 11.0% year-over-year, and that from the Legacy DH segment rose 7.8% year-over-year. This highlights H World Group Limited’s (NASDAQ:HTHT) strong operational model across both its segments. The company’s revenues also grew by 2.4% year-over-year, landing within its revenue increase guidance.
H World Group Limited (NASDAQ:HTHT) is focusing on expanding its business with new hotel openings. In fiscal Q3 2024, the company’s Legacy Huazhu segment opened 774 hotels, including 3 leased and owned hotels, and 771 manachised and franchised hotels. As of September 30, 2024, H World Group Limited (NASDAQ:HTHT) has a total of 2,925 unopened hotels in the pipeline. This includes 2,899 hotels from the Legacy Huazhu business and 26 from the Legacy DH business.
4. Las Vegas Sands Corp. (NYSE:LVS)
Analyst Upside Potential: 40.48%
Number of Hedge Fund Holders: 47
Las Vegas Sands Corp. (NYSE:LVS) develops and operates destination properties, also known as Integrated Resorts. Integrated Resorts offer accommodation, entertainment, gaming, retail malls, celebrity chef restaurants, exhibition and convention facilities, and other amenities. The company’s primary operating and developmental activities are concentrated in Macau and Singapore. It owns the Marina Bay Sands in Singapore and has an elaborate portfolio in Macau, including The Venetian Macau Resort Hotel, The Parisian Macau, The Londoner Macau, The Plaza Macau and Four Seasons Macau, Cotai Strip, and Sands Macau.
The company’s Macau market is continually growing. Gaming revenue grew by 6% in fiscal Q4 2024 compared to fiscal Q4 2023. Mass gaming revenue also grew by 5% in the quarter. Management believes that the Chinese economy will grow, and Macau’s economy will grow with it. It expects gross gaming revenue in Macau to surpass $30 billion in 2025 and continue to grow.
Las Vegas Sands Corp.’s (NYSE:LVS) strategic approach to growth is to expand its share of EBITDA in the Macau market and generate industry-leading returns on invested capital. Its assets give it a strong advantage in Macau’s competitive market. Marina Bay Sands in Singapore also reported strong results in fiscal Q4 2024, reflecting the positive impact of the growth of high-value tourism and the company’s capital investment program.
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.”
2. Wynn Resorts, Limited (NASDAQ:WYNN)
Analyst Upside Potential: 50.27%
Number of Hedge Fund Holders: 52
Wynn Resorts, Limited (NASDAQ:WYNN) designs, develops and operates integrated resorts that feature luxury hotel rooms, dining and entertainment options, high-end retail space, convention and meeting facilities, and gaming. Its segments include Wynn Macau, Wynn Palace, Las Vegas Operations, Wynn Interactive, and Encore Boston Harbor.
Wynn Resorts, Limited (NASDAQ:WYNN) is strategically focused on investing in its existing properties and expanding its operations, particularly with the development of Wynn Al Marjan Island in the United Arab Emirates (UAE). Reporting on the construction progress of Wynn Al Marjan Island, the company said that the project is proceeding as planned, with 55% of the structural concrete completed.
The first integrated resort in the UAE is currently expected to open in 2027. Wynn Resorts, Limited (NASDAQ:WYNN) estimates that the UAE will be a gaming market worth $3 billion to $5 billion and one of the most exciting new markets in the industry. The company also has a strong liquidity position, with a global cash and revolver availability of $3.5 billion as of September 30. This comprises $1.7 billion of total cash and available liquidity in Macau and $1.8 billion in the U.S.
Baron Real Estate Fund stated the following regarding Wynn Resorts, Limited (NASDAQ:WYNN) in its fourth quarter 2023 investor letter:
“The shares of Wynn Resorts, Limited (NASDAQ:WYNN), an owner and operator of hotels and casino resorts, declined modestly in the most recent quarter, in part due to concerns about economic weakness in China.
We remain optimistic about the multi-year prospects for the company. We believe the ongoing re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase 30% to 50% higher than where they have recently traded.
We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic.”
1. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)
Analyst Upside Potential: 68.19%
Number of Hedge Fund Holders: 25
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) develops and operates resort facilities, hotels, and casinos in the Philippines and Macau. The company’s three Macau casinos include City of Dreams, Studio City, and Altira Macau.
It reported group-wide adjusted property EBITDA of around $323 million for fiscal Q3 2024, reflecting a 7% increase compared to fiscal Q2. Its total operating revenues also grew around 16% to $1.18 billion in fiscal Q3 2024. The increase in total operating revenues was attributed to the company’s improved performance in all non-gaming operations and gaming segments, supported by a continual recovery in inbound tourism to Macau during the quarter.
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) has launched various initiatives to activate areas throughout its properties, such as a revamped loyalty program, a new Signature Club premium slot area at City of Dreams, and a highly themed slot area called the Dragon Zone at Studio City, developed in partnership with Aristocrat Gaming. Melco Resorts & Entertainment Limited (NASDAQ:MLCO) has plans to continue unveiling exciting projects to support the ongoing growth in Macau.
Overall, MLCO ranks first among the 12 best hotel stocks to buy according to analysts. While we acknowledge the potential of hotel stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MLCO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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