Even though the resurgence of the COVID-19 cases continues to threaten the hotel industry’s recovery, increasing vaccinations could drive increasing hotel occupancy. So, it could be wise to scoop up prominent hotel stocks InterContinental Hotels (IHG), Choice Hotels (NYSE:CHH), and Wyndham Hotels (WH), especially as they are currently trading significantly below their 52-week price highs. Read on.Most hotels around the globe had to close their doors last year due to restrictions imposed to curb the spread of the deadly COVID-19 virus. While the industry began recovering earlier this year, the resurgence of COVID-19 cases due to the rapid spread of the Delta variant has fostered concerns related to the pace of the sector's recovery.
However, increasing vaccinations could lead to more leisure travel and, in turn, increase the hotels’ occupancy rate. According to the U.S. Lodging Industry and Market Outlook from Lodging Analytics Research & Consulting (LARC), the U.S. RevPAR is expected to increase by 30.6% in 2021 and at a 16% CAGR from 2020 through 2025.
Given this backdrop, we think prominent hotel stocks InterContinental Hotels Group PLC (IHG), Choice Hotels International, Inc. (CHH), and Wyndham Hotels & Resorts, Inc. (WH), which are currently trading significantly below their 52-week price highs, could be solid bets.