The recent re-opening of international borders for vaccinated people provided immense impetus to the post-pandemic recovery of the hotel industry. Furthermore, with the holiday season fast approaching, this momentum is expected to continue. That is why we think it could be wise to now bet on fundamentally sound hotel stocks InterContinental Hotels (IHG), Choice Hotels (NYSE:CHH), and Wyndham Hotels (WH). Read on.The hotel industry was severely impacted by COVID-19 pandemic-induced travel restrictions and social distancing rules. However, because solid progress on the vaccination front has helped contain the spread of the virus in several parts of the world this year, the industry seems set for a solid rebound.
On November 8, the Biden administration announced the lifting of the U.S.’ international travel ban for vaccinated tourists after nearly 18 months. This should be a catalyst for the travel and tourism industry. According to AAA, travel volume is expected to rise to within 5% of 2019 levels this Thanksgiving, with some 53.40 million people taking to the air, roads, and rails.
Therefore, we think it could be wise to bet on quality hotel stocks InterContinental Hotels Group PLC (IHG), Choice Hotels International, Inc. (CHH), and Wyndham Hotels & Resorts, Inc. (WH). They are expected to perform well this quarter and beyond as travel picks up.