We recently published a list of the 12 Best Hotel Stocks To Buy According to Analysts. In this article, we are going to take a look at where VICI Properties Inc. (NYSE:VICI) stands against other 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.
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).
A business executive in a sharp suit shaking hands on a real estate deal.
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.”
Overall, VICI ranks 11th on our list of best hotel stocks to buy according to analysts. While we acknowledge the potential of VICI, 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 VICI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
