The hotel industry received a severe blow last year as several hotels had to be closed due to the COVID-19 pandemic-related restrictions. However, with solid progress on the vaccination front, the industry’s prospects look better this year. After being restricted for more than a year, people are venturing out of their homes this summer. So, both Airbnb (ABNB) and Choice Hotels International (NYSE:CHH) might witness a solid recovery this year. But let’s find out which of these two stocks is a better buy now.Airbnb, Inc. (ABNB) and Choice Hotels International, Inc. (CHH) are two of the emerging players in the hospitality industry offering accommodation-related services. ABNB’s marketplace model connects hosts and guests online or through mobile devices, offering the facilities to book accommodations, including private rooms and luxury villas. CHH operates as a hotel franchisor worldwide operating under brands such as Comfort Suites, Clarion, WoodSpring Suites, and Cambria Hotels.
The hotel industry was severely impacted by the COVID-19 pandemic last year witnessing low occupancy and hotel closures. Even though the industry is far from returning to the pre-pandemic levels, it has been gradually recovering as the vaccine rollout continues and restrictions continue to be lifted. Several new methods such as contactless check-ins are further expected to help the industry revive in the post-pandemic scenario. According to a Lodging Analytics Research & Consulting (LARC) report, the United States’ RevPar is expected to increase by 30.6% in 2021. So, both ABNB and CHH should witness increasing demand for their services.
While ABNB has returned 2.5% over the past six months, CHH has gained 17.3%. However, in terms of the past month’s performance, ABNB is a clear winner with 13.7% returns versus CHH’s 2.3%. But which of these two stocks is a better pick now? Let's find out.