Three hospitality stocks that are riding industry tailwinds

These global hotel operators are well positioned to benefit from a fast-growing market.

Vikram Barhat 29 March, 2017 | 5:00PM
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The hospitality sector has weathered many storms over the past couple of years. In the face of relentless headwinds and headline risks -- political unrest, terrorist attacks and a fragile economic recovery -- the sector has shown tremendous resilience while contributing significantly, particularly the luxury hotels and resorts industry, to the US$2 trillion worldwide travel industry.

According to a Transparency Market Research report, the global luxury hotels market is projected to grow from US$148.6 billion in 2014 to US$195.2 billion by 2021. The ITB World Travel Trends Report 2016/17 forecasted an increase in worldwide outbound travel of between 4% and 5%, led by North America and Asia. The report attributes this growth to increased disposable income, pent-up tourism demand, simpler visa regulations and advances in technology, among other factors.

The proliferation of online booking and technological innovations in the travel and tourism industry have proved to be particularly powerful engines of growth driving the global hotel industry, which Euromonitor International projects will rack up more than US$550 billion in revenue in 2018.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Hilton Worldwide Holdings Inc141.12 USD0.63Rating
Marriott International Inc Class A154.22 USD0.62Rating
Wynn Resorts Ltd91.04 USD0.11Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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