The US is one of the leaders when it comes to vaccinations. It has vaccinated about 90% of its population, and many states in the country are now preparing to re-open their economies in a significant way. This bodes well for tourism, travel, and the hospitality industries that have been some of the worst affected ones by the pandemic. Therefore, if you are looking for the best hotel stocks to invest, then you will want to consider names that have a sizeable presence in countries like the US. This is because many countries around the world have still not been able to scale up their vaccination drives due to supply shortages. One hotel chain that has more than 80% of its properties located in the US is Choice Hotels International. The company has perfected its business model involving franchised hotels and has a host of brands that cater to customers from the upscale segment to the economy segment.
Choice Hotels International Releases Q1 2021 Numbers
On 10th May 2021, Choice Hotels International announced its first-quarter 2021 earnings results. Total revenue was down from $218 million in Q12020 to $183 million. Revenues were down for all the major business segments as the hotel industry is still not out of the woods as far as the pandemic is concerned. Operating income was down from $46.7 million in Q12020 to $43.9 million. Earnings per share on a diluted basis were down from $1 in Q12020 to $0.4 in Q12021. While the numbers did not look positive on a company level, there were positive trends when the performance was compared to the overall industry. The revenue per available room declined 23% which was less than the industry average. The company’s management also believes that Choice Hotels International’s strong balance sheet, its diverse presence in multiple sub-segments, and its strong franchisee value proposition places the company well to emerge from the pandemic. If you want to buy hotel stocks now, then Choice Hotels is one candidate worth analyzing further.
Best Hotel Stocks To Invest
Choice Hotels International is among the world’s largest lodging franchisors. Its stock has grown significantly from around $34 in 2011 to over $120 in 2021. The stock dropped 46% during the March 2020 crash but has recovered quite well since then.