Hotel stocks have been on an uptrend lately. Economies around the world are gradually opening and travel is starting to pick up. With vaccinations estimated to pick up pace, now may be a good time to look at hotel stocks. Choice Hotels International is one of the most well-known names in the industry. It owns famous brands like Comfort Inn and Quality Inn. While business isn’t quite like what it was before the pandemic, the stock has been rallying since the end of January 2021. Similar trends are visible with Wyndham Hotels and Marriott International. All the big names in the sector seem to indicate a trend.
Choice Hotels Reported Q32020 Earnings Recently
Choice Hotels International reported its third-quarter 2020 earnings results on 6th November 2020. Revenue fell from $310 million in Q32019 to $210 million in Q32020. Net income per diluted share was down from $1.36 in Q32019 to $0.26 in Q32020. However, revenuePAR for the domestic market outperformed the total industry by 20 percentage points, declining by only 28.8% year-on-year.
According to company CEO Patrick Pacious, “Systemwide domestic RevPAR outperformed the industry by nearly 20 percentage points, declining only 28.8% from the third quarter of 2019. All of our limited service brands had significant RevPAR index gains against their local competitors. We continued to grow our effective royalty rate, a reflection of the continuously improving value proposition to our franchisees. And we grew our total system size, especially in our more revenue intense, upscale, mid-scale and extended-stay segments.”
Best Hotel Stocks To Buy Right Now
Choice Hotels International’s stock is up more than 6% since January 29th, 2021. Wyndham Hotels’ stock is up 7% during the same time period. Meanwhile, Marriott International is up more than 10% since January-end. Choice Hotels International’s stock has doubled since the lows of the March 2020 market crash. The stock closed at $107 on 8th February 2021.