3 Hotel Stocks Benefitting From Domestic Flights Returning To Pre-Covid Levels

Due to the Covid-19 pandemic, many vacations were postponed. But these days, domestic leisure and business travel is starting to pick up again.

According to the U.S. Travel Association, travel spending in September increased to its highest mark since the start of the pandemic, at 6% above 2019 levels. Additionally, the TSA checkpoint data is relaying that more people are flying in fall than in 2019.

With this in mind, it may not be a bad idea to invest in a hotel stock as consumers have vacation money to spend.

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• Vail Resorts Inc. MTN offers a dividend yield of 3.49% or $7.64 per share annually, making quarterly payments, with a track record of increasing its dividends once in the past year. With at least 37 ski resorts and three business segments — including Mountain, Lodging, and Real Estate — Vail Resorts expects resort reported EBITDA to be between $893 million and $947 million for fiscal 2023. That includes an estimated $4 million of acquisition and integration related expenses specific to the Seven Springs Resorts and Andermatt-Sedrun. Vail resort reported EBITDA was $836.9 million for fiscal 2022.
• Bluegreen Vacations Holdings Corporation BVH is offering a dividend yield of 3.46% or 60 cents per share annually, through quarterly payments, with a track record of increasing its dividends once in the past year. Bluegreen Vacations Holdings Corporation is a vacation ownership company that markets and sells vacation ownership interests (VOIs) and manages resorts in popular leisure and urban destinations. In the second quarter, Bluegreen Vacations system-wide sales of VOIs increased 21% to $198.5 million from $163.4 million in the prior year quarter. Additionally, vacation packages outstanding of 184,782 as of June 30, 2022, compared to 163,738 outstanding as of June 30, 2021.
• InterContinental Hotels Group PLC IHG offers a dividend yield of 2.37% or $1.30 per share annually, utilizing semiannual payments, with an infrequent track record of increasing its dividend payments.The company operates over 888,000 rooms in more than 6,000 hotels across 17 brands addressing the midscale through luxury segments, with Holiday Inn and Holiday Inn Express constituting its largest brand. Keith Barr, CEO of IHG Hotels & Resorts said in its third quarter press release, “The industry is experiencing lower levels of new hotel opening activity, and with a particular impact from the restrictions in China. Despite this, in this latest quarter, we opened 51 hotels and signed 89 more into our pipeline.”

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