5 Best Hotel Stocks To Invest In

1. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Holders: 59

MGM Resorts International (NYSE:MGM) is the best hotel stock to invest in, ranked based on its popularity among the elite hedge funds. An American global hospitality and entertainment mega corporation, MGM Resorts International (NYSE:MGM) owns and operates hotels like the  Bellagio, Mandalay Bay, MGM Grand, and Park MGM. MGM Resorts International (NYSE:MGM) operates destination resorts across Las Vegas, Massachusetts, Detroit, Mississippi, and New Jersey. The company has major stakes in MGM China Holdings Ltd and MGM Growth Properties, which is a sought-after REIT. 

At the end of June, 59 hedge funds were bullish on MGM Resorts International (NYSE:MGM), up from 57 in Q1. 

Here is what Longleaf Partners Global Fund has to say about MGM Resorts International in its Q2 2021 investor letter:

“The investments in the preceding paragraph have been long-term holdings, but what about our newer purchases? We have heard from long-time Southeastern/Longleaf observers who look at these stock charts and ask, “How can that still be cheap?” We continue to focus on the importance of value growth and dynamically updating our appraisals. MGM for example has seen very strong value growth since our purchase last year as the company’s properties in the US have rebounded much stronger than even the biggest optimists predicted. Management and the board have reduced risk by monetizing more of MGM’s holdings in MGM Growth Properties, its real estate subsidiary. There is still plenty of value to be added in the online division as well. All this leads to a value per share that was in the $30s last year now approaching $50. The company remains attractively discounted, even after price appreciated 101% since we first bought the stock 9 months ago.

MGM (12%, 0.43%), the casino and online gaming company, was a top contributor as it reported a solid first quarter with Vegas EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) doubling sequentially and Regional EBITDAR actually growing strongly YOY due to exceptional cost control. The second quarter saw clear signs of even more growth with a strong rebound in travel to the company’s US properties. MGM also continued to de-risk its value and balance sheet by selling over $1 billion of fully valued shares of its real estate subsidiary MGM Growth Properties in the quarter. On the first day of July, the company announced a transaction to consolidate and sell the real estate of its CityCenter project at a price that was accretive to our value per share. “

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