Even though the spread of the COVID-19 Delta variant has presented a profound challenge to the hotel industry, the rapid vaccination drive and gradual easing of restrictions should help the industry endure. As people resume leisure travel, leading hotel operators Marriott (MAR) and InterContinental Hotels (IHG) should recover. But which of these stocks is a better buy now? Read more to find out.Bethesda, Md.-based Marriott International, Inc. (NASDAQ:MAR) operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through North American Full-Service; North American Limited-Service; and the Asia Pacific segments. In comparison, Denham, U.K.-based InterContinental Hotels Group PLC (IHG) owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company also operates resorts, restaurants, and spas.
Tourism was one of the hardest-hit sectors last year due to the travel restrictions and social distancing mandates. However, thanks to the rapid rollout of the vaccines worldwide, people are regaining confidence and again engaging in leisure travel.
A stronger than expected summer leisure season this year is a clear indication of the rebounding hospitality industry. Lodging Analytics Research & Consulting (LARC) expects U.S. RevPAR to increase 49.9% in 2021 and at a 16.8% CAGR from 2020 - 2025. MAR and IHG are well-positioned to capitalize on rebounding demand.