Skip to Content
Stock Strategist

Hotel Stocks We Like

The industry is booming, but a few values remain.

Mentioned: , , , , , , , , ,

Hotel investors needed steely resolve to brave the lodging industry's ups and downs over the last five years. From 2000 to 2003 occupancy plummeted by more than 4 percentage points while nightly rates fell 2.5% over the same period. Since then, hotels have rebounded: Occupancy and rate levels are quickly approaching the industry's mid-1990s peak. Stock performance has mimicked these travel trends; bellwether  Marriott International (MAR) lost 40% of its value from August 2001 to February 2003, but has since appreciated by more than 200%. We think growing demand and a limited supply of new rooms should keep the hotel industry healthy, presenting investors with several exciting investment opportunities.

The 9/11 Effect
Travel plummeted after the 9/11 attacks, leaving hotels half empty. The industry's troubles were compounded by high fixed costs--costs that don't fall despite unoccupied rooms. Several companies that were teetering on the edge--like  Lodgian (LGN)--were pushed into bankruptcy. At the time there was concern that terrorism fears and expanded use of video conferencing would create a permanently depressed travel market.

Jeremy Glaser does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.