The hotel industry in the United States took a hit last year as coronavirus ravaged the nation. Lockdown measures were implemented across the country to limit the spread of the virus. Under such circumstances, traveling took a backseat as people had to cancel their vacation plans. However, the situation is gradually improving, thanks to the continued progress in the vaccination drive within the country. Moreover, the U.S. Centers for Disease Control and Prevention (CDC) is easing travel restrictions. Notably, a
Baltimore Sun article published on Jun 16, citing the CDC, stated that fully vaccinated people, who are traveling in the United States, don’t need to get tested or self-quarantined, both before or after traveling.
Reflective of such positive developments, Americans are feeling confident now of resuming their travel plans after more than a year-long gap. Notably, a
PR Newswire article citing a survey by Deloitte stated that four in 10 Americans are planning to go for at least one vacation this summer. Interestingly, this percentage is similar to that in the pre-pandemic summer travel period of 2019. However, safety protocols are still a priority for travelers as the survey found that 75% of travelers are considering factors such as COVID-19 restrictions, CDC guidelines, and so on while selecting their travel destination.
The survey found that for most travelers, hotels are the leading form of lodging, which should augur well for the hotel industry. In fact, 85% of the summer travelers are planning to stay in a hotel, the article stated. Moreover, as adherence to safety has become a priority, the hotel industry has to follow such protocols to ensure the safety of its guests. Notably, the survey found that for hotel guests, 89% of the respondents cited enhanced safety measures to be the main reason for their selection. Meanwhile, a U.S. News & World Report article mentioned that hotels are looking to capitalize their outdoor spaces as people are seeking opportunities to “get some fresh air and sunshine” after being restricted by "lockdowns and stay-at-home orders."
Moreover, Americans are feeling optimistic about the economy as consumer confidence soared to a new pandemic high in June. Notably, the Conference Board’s index increased to 127.3 in June, from an upwardly revised reading of 120 in May, as mentioned in a
BloombergQuint article. In fact, the article stated that the report showed that improvement in confidence among Americans is also “driving a pickup in vacation plans.” Such positive developments should provide a leg up to the hotel industry in the United States as it looks to move beyond the woes of the pandemic. 4 Stocks to Keep an Eye On
The hotel industry in the United States finally seems ready to put the worst of the pandemic behind as Americans gear up to resume their vacation plans. Hence, this seems like a prudent time to look at hotel names with strong fundamentals that stand to benefit. Notably, we have selected four such stocks that carry a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Choice Hotels International, Inc. ( CHH Quick Quote CHH - Free Report) , together with its subsidiaries, operates as a hotel franchisor worldwide. The Zacks Consensus Estimate for its current-year earnings has moved up 3.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 49.1%. Hilton Worldwide Holdings Inc. ( HLT Quick Quote HLT - Free Report) , a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. The Zacks Consensus Estimate for its current-year earnings has moved 4.9% north over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Marriott International, Inc. ( MAR Quick Quote MAR - Free Report) operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The Zacks Consensus Estimate for its current-year earnings has risen 16.8% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Wyndham Hotels & Resorts, Inc. ( WH Quick Quote WH - Free Report) operates as a hotel franchisor worldwide. The Zacks Consensus Estimate for its current-year earnings has risen 0.4% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Zacks Names “Single Best Pick to Double”
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