In 2025, invest in the hotel sector: 8 options to watch out for

The tourism sector is entering a period of high potential. Following the continuous recovery of the hotel industry from the impacts of COVID-19, increasing travel demand and sustainable travel trends are creating new opportunities for investors. Hotel stocks have become one of the market highlights in 2025. This article will help you understand the fundamentals of investing and identify the best options.

Why are hotel stocks interesting in 2025?

The recovery of tourism is clearly reflected in the numbers. The return of large numbers of international tourists, government tourism promotion policies abroad, and regional travel growth all indicate that hotel stocks should have the potential to generate long-term returns.

5 Thai hotel stocks that indicate upcoming opportunities

MINT (Minor International): A leader in diversified business

MINT owns hotel properties and food businesses across many countries worldwide. Its diverse brands range from luxury to mid-range hotels, enabling the company to cater to travelers from all segments.

In 2024, MINT’s performance showed significant expansion, reporting a net profit of 7,750.22 million baht, an increase of 43.37% compared to the previous year. (5,407.06 million baht) mainly derived from strong hotel operations. The Revenue Per Available Room (RevPAR) indicates balanced pricing and occupancy management.

• Current Price: 28.25 THB
• P/E Ratio: 20.85x
• Key Point: Diverse business portfolio

AWC (Asset World Corporation): Prime locations with diversity

AWC focuses on hotels located in prime areas of Thailand. Besides luxury hotels, the company specializes in MICE (Meetings, Incentives, Conferences, Exhibitions). These hotels maintain steady occupancy rates due to consistent demand.

Forecasts for 2025 suggest AWC will set new records, especially in the first quarter when tourism is stimulated by government policies and natural industry growth.

• Current Price: 2.96 THB
• P/E Ratio: 16.19x
• Key Point: Plans for comprehensive real estate development

CENTEL (Central Plaza Hotel): Pioneering expansion

CENTEL plans a 3-year investment of 19,000 million baht to expand its hotel and resort business. In 2025, it is expected to open 9 new hotels domestically and internationally.

The company also plans to rebrand famous hotels such as Centara Grand Hua Hin and Centara Grand Krabi into luxury hotels. This move aims to increase value and corporate interest.

Forecasted revenue for 2025 could reach 15,000 million baht, a 23% growth compared to the previous year.

• Current Price: 33.00 THB
• P/E Ratio: 25.22x
• Key Point: International hotel management

ERW (The Erawan Group): Systematic risk diversification

ERW owns a diverse hotel network, including luxury, mid-range, and budget hotels across Thailand. This diversification prevents reliance on a single market.

Early in the year, ERW’s business segments are expected to benefit from increased demand, especially in MICE (Meetings, Incentives, Conferences, Exhibitions), which provide stable and low-cost revenue.

• Current Price: 3.24 THB
• P/E Ratio: 12.67x
• Key Point: Risk spreading

SHR (S Hotels & Resorts): Premium target market

SHR focuses on luxury hotel and resort investments in leading tourist destinations in Thailand and abroad. The company aims to serve high-end travelers with quality and experience demands.

Signals in late 2024 suggest SHR may return to profitability. The renovation project of SAii Laguna Phuket is progressing faster than planned, and the SO/Maldives hotel is entering peak tourism season.

• Current Price: 2.16 THB
• P/E Ratio: 58.49x
• Key Point: Stable capital for expansion

3 international hotel stocks to watch for investors

MAR (Marriott International): Global network

Marriott is a leading owner and operator of luxury hotels with high international standards. Brands like Marriott, Ritz-Carlton, and Sheraton symbolize luxury.

The company consistently invests in technology and guest experience, giving it an advantage in attracting travelers.

• Current Price: $280 USD
• P/E Ratio: 32.52x
• Key Point: Largest hotel network, strong membership programs

HLT (Hilton Worldwide Holdings): New standards

Hilton manages and franchises hotels and resorts worldwide. It has an extensive network and continues to expand into new markets. Customers often rate Hilton highly for service and satisfaction.

Hilton’s flexible business model demonstrates its ability to succeed in various situations.

• Current Price: $258 USD
• P/E Ratio: 42.09x
• Key Point: Recognized brands, professional management

WH (Wyndham Hotels & Resorts): Potential in mid-market

Wyndham focuses on budget and mid-range hotels, which have high and broad demand. The company has a diverse brand portfolio across many regions globally.

Wyndham’s growth stems from expanding its business units and improving management.

• Current Price: $104 USD
• P/E Ratio: 29.03x
• Key Point: Cost-efficient management, targeting high-volume mid-market segments

How to analyze hotel stocks effectively

Review company fundamentals

Performance and profitability: Study revenue and profit over multiple years to identify growth trends. Analyze gross profit margin and net profit to assess profitability.

Financial ratios: Check debt-to-equity ratio to evaluate financial strength. Companies with low debt are more resilient to future challenges.

Management: Research management team backgrounds and strategic direction. Good management indicates better future performance.

Assets and liabilities: Analyze asset values such as hotels and land. Review liabilities and interest expenses annually.

Monitor industry-specific indicators

Occupancy Rate (Occupancy Rate): Indicates the percentage of rooms occupied. Higher rates show better sales capability.

Average Daily Rate (ADR): The average price charged per room. Helps understand pricing strategies.

Revenue Per Available Room (RevPAR): Combines occupancy and ADR to show overall hotel performance.

Analyze external industry factors

Tourism trends: Follow domestic and international tourism statistics. Analyze factors like economic conditions, political stability, and environmental factors.

Macroeconomic conditions: Assess impacts of interest rates and exchange rates on tourism and investments.

Geographical factors: Hotels in prime tourist locations often have competitive advantages.

Consider additional factors

Brand and reputation: Strong brands like Centara or SHR targeting luxury segments often have competitive edges.

Risk diversification: Companies with multiple hotel types and locations face less risk. For example, Arawan with Hop Inn for general travelers.

Adaptability: Companies that can adapt to unforeseen events and changing guest needs tend to perform better.

How Thai investors can buy and sell hotel stocks

Trading on the Stock Exchange of Thailand (SET)

Investors can open accounts with brokerage firms (brokers) and trade hotel stocks listed on SET. Brokers act as intermediaries to execute orders in the market.

Advantages: Fast transactions, no currency exchange worries, low fees.

Disadvantages: Limited stock options compared to foreign markets.

Investing via mutual funds

Investors can buy units in funds focused on hotel or tourism stocks, such as Thai Mid/Small Cap funds.

Advantages: Managed by professional teams, risk diversification, suitable for those without time to manage portfolios.

Disadvantages: Higher management fees, no direct control over portfolio.

Summary: 2025 and the opportunities in hotel stocks

2025 is an exciting year for hotel stocks both domestically and internationally. Numerous supporting factors include the return of international tourism, government policies promoting travel, and regional economic expansion.

However, investors should understand that investing in hotel stocks involves risks, such as global economic volatility, political stability, and unforeseen events that could impact tourism.

Thorough research, continuous monitoring of hotel stocks, analyzing company performance, and understanding industry trends are essential before making investment decisions. Smart planning and risk management are key to success.