The contents of this article are for educational purposes only. They are not intended to be a source of professional investing advice. You will find experts on investing here.
Are you an investor looking to diversify your investment portfolio? Here is a great hotel investment opportunity for you in Portugal and the Bahamas through our Alt Path hotel fund.
The Alt Path hotel fund has been set up to enable investors to participate in pre-approved hotel development projects in Portugal, which are eligible for 45% to 55% cash incentives from the Portuguese government. The goal is to build and manage these new boutique hotels in Portugal and The Bahamas. With this approach, investors are able to diversify their investment portfolios and manage overall risk.
For investors interested in citizenship by investment, our team is well equipped to provide support and guide you through the process of applying for a second citizenship by making qualified investments. To speak to our team about the available investment opportunities through the Alt Path hotel fund, schedule a meeting with us here.
For detailed information on the Portugal golden visa program, read our latest blog here.
Choice Hotels International (NYSE: CHH) is one of the largest lodging franchisors in the world. The brand currently franchises 7000+ hotels in 40+ countries and manages hotels ranging from budget to upscale hotels. The different properties provide business and leisure travelers in the US and beyond with high quality accommodation options.
A great advantage that the brand has is that, as a hotel franchisor, Choice Hotels doesn't have to cater for management or upkeep costs of its properties; that lies on the franchise owners. In addition, the franchise owners are also required to pay a percentage for the use of the brand name and systems, as well as licensing fee.
As of February 2024, the company has a market cap of $5.56 billion.
Hilton Worldwide Holdings Inc. is one of the largest hotel companies in the global hospitality market, operating over 6,500 properties globally. The brand has both budget and luxury properties within its portfolio and boasts of a loyalty program with 115+ million members.
Thanks to an increase in travel post pandemic, the hotel chain has experienced a growth in numbers and is set to add 24 new properties in their portfolio in 2024. With a strong presence in different parts of the world and a reputation for quality and excellent service, Hilton is well positioned to capitalize on the growing travel demand.
As of February 2024, the company has a market cap of $51.34 billion.
Hyatt Hotels Corporation is a global hospitality company with a portfolio of 1,300+ hotels and all-inclusive properties, in 76 countries across 6 continents. The brand has carved out its niche in the luxury and upscale sector, catering to travelers who seek luxurious travel experiences.
As a luxury brand offering its clients premium and personalized service, Hyatt has earned a loyal customer base, driving repeat business and revenue growth. The company has also been expanding into the lifestyle and wellness space with an aim to adapt to the changing consumer preferences, further solidifying its position in the market.
As of February 2024, the company has a market share of $15.59 billion.
Marriott International is among the top brands within the hospitality sector with 8,600+ properties across 139+ countries and territories globally. With brands that range from budget to luxury, Marriott caters to a broad range of travelers, from business to leisure travelers. With this approach, the brand is able to withstand the different economic cycles as travel demand continues to go up post pandemic.
Marriott has one of the most sought after loyalty programs, and has been investing heavily in digital innovation thus enhancing the overall guest experience and driving customer retention.
As of February 2024, the company has a market cap of $72.09 billion.
MGM Resorts International is a global gaming and entertainment company that operates hotels, casinos, state of the art conference facilities and live entertainment experiences. With 31 unique hotel and gaming destinations globally, the company is committed to creating a sustainable future and making a difference in the communities where it operates.
With presence in the US and Europe, the company is also looking to expand to different parts of Asia.
As of February 2024, the company has a market cap of $13.43 billion.
Some advantages of investing in hotel stocks include:
Some disadvantages of investing in hotels include:
As an investor, here are some other great hotel stock options to keep an eye on.
InterContinental Hotels Group PLC is one of the leading hotel companies in the world with 6000+ hotels in their portfolio, across 100+ countries. The company mainly caters to the upscale and luxury customer segment and their targeted portfolio of brands is tailored to meet the needs of this client base.
With the changing consumer preferences, IHG has positioned itself for growth by incorporating sustainability practices and technology in their operations in order to become one of the world’s leading luxury and lifestyle hotel brands.
As of February 2024, IHG has a market cap of $18.19 billion.
Host Hotels is among the world's largest publicly traded lodging REIT, with 75+ hotels in its portfolio and presence in 20 top markets in the US. The company focuses on operating upper scale hotels in the US, and its diversified portfolio and strong capital structure enables the company to efficiently run its operations.
As of February 2024, IHG has a market cap of $14.27 billion.
Airbnb is not necessarily a hotel company, but is a leading provider of alternative and unique accommodation options for travelers around the world. With 7.7+ million active listings around the world and active presence in 220+ countries and regions, Airbnb continues to scale across different regions due to its business model that caters for both leisure and business travel. As such, the company is able to have a diversified investment portfolio and revenue streams.
As of February 2024, IHG has a market cap of $98.39 billion.
With 300+ hotels in their portfolio, IHCL is one of the biggest hospitality companies in India that has managed to merge warm Indian hospitality with world-class service. Catering to a diverse group of travelers, IHCL has positioned itself for growth over the next few years with a focus on incorporating digital and sustainability practices that align with the changing needs of consumers in the travel sector.
As an investor looking to invest in hotels, a great way to add hotel stocks to your investment portfolio is through hospitality real estate investment trusts (REITs). A hotel REIT is a type of real estate investment trust that primarily owns, operates or finances hotels and lodging properties.
Through hotel real estate investment trusts (REITs) investors are able to gain exposure to hotel investments like business class hotels, motels and resorts without necessarily having to own the property themselves.
Similar to traditional REITs, hotel REITs:
Before you get started investing in hotel REITs, it is important that you're aware of the fact that income generated by these REITs is heavily influenced by travel demand, occupancy rates and average daily room rates. To access the latest insights on hospitality REITs, read more here.
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In 2023, Bay Street was recognized at the Wealthmanagement.com 2023 Industry Awards in the Asset Managers: Diversity, Equity and Inclusion category, for its collaboration with Resthaven Properties in the real estate sector.
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