What to look for when investing in hotel stocks in 2025? Investment activities that promise returns

Market Context of the Hotel Stock Industry in 2568

The hotel industry is entering a transformative phase, driven by various factors that are fueling change. From the impacts of the pandemic, shifts in global travel patterns, to sustainability-focused travel trends, these developments have made hotel stocks a clearly noteworthy investment sector. Fund managers are actively seeking investment tools with the potential to generate consistent value.

5 Companies for Thai Investors

MINT: Navigating Diverse Business Growth

Minor International Public Company Limited (has established a regional network encompassing luxury hotels, resorts, and high-end food services. With a focus on creating warm and inviting products and services, it attracts guests across different income levels.

Last year’s performance shows promising figures, with a net profit of 7,750.22 million baht, representing a 43.37% increase compared to the previous period )5,407.06 million(. This growth is evident from improved RevPAR (Revenue Per Available Room).

Key Indicators: Price 28.25 THB, P/E 20.85 times

) AWC: A Leader in Property Management

Asset World Corporation Public Company Limited (owns a quality hotel portfolio in prime locations across Thailand. The company manages luxury hotels along with facilities for gatherings and business meetings. Currently, it is expanding its hotel and residential projects, which are expected to boost long-term revenue.

In 2568, annual revenue is projected to peak, supported by a brightening tourism industry and government tourism promotion policies, with a positive outlook for Q1/2568.

Key Indicators: Price 2.96 THB, P/E 16.19 times

) CENTEL: Expanding Across Countries

Central Plaza Hotel Public Company Limited ###has four years of experience in hotel management and quality food services. It manages various hotel brands and risk management strategies, with properties located in popular tourist destinations.

The company plans a 19,000 million baht investment over three years to expand its hotel and resort business. In 2568, it aims to open nine new hotels domestically and internationally, including upgrades to luxury brands under Centara. Revenue in 2568 is expected to reach 15,000 million baht, a 23% increase.

Key Indicators: Price 33.00 THB, P/E 25.22 times

( ERW: Diversified Network Risks Across Thailand

The Erawan Group Public Company Limited )operates a variety of accommodation types, from premium rooms to economy options. By expanding its hotel network across Thailand, the company benefits from domestic tourism fundamentals.

This ongoing performance indicates that the overall hotel group’s efficiency should improve with rising demand, especially during peak seasons, and the adaptation of rooms for MICE (Meetings, Incentives, Conferences, Exhibitions) segments, providing more opportunities for events.

Key Indicators: Price 3.24 THB, P/E 12.67 times

SHR: Opportunities Amidst Active Investment

S Hotel & Resorts Public Company Limited (invests in hotels and resorts at popular destinations in Thailand and abroad. The company is shifting towards high-end and experiential offerings, aiming to attract top-tier guests.

The renovation of SAii Laguna Phuket has been tailored to specific market segments. The SO/Maldives hotel is adapting to the peak season, with expectations to resume operations in Q4/67.

Key Indicators: Price 2.16 THB, P/E 58.49 times

Top 3 Global Companies

) Marriott International, Inc. ###MAR(

American Marriott operates, manages, and owns large-scale hospitality businesses, including luxury rooms, resorts, and leisure facilities. It owns prominent brands such as Marriott, Ritz-Carlton, and Sheraton. Through investments in IT and service excellence, it has achieved sustained growth.

Key Indicators: Price $280 USD, P/E 32.52 times

) Hilton Worldwide Holdings Inc. ###HLT(

American Hilton manages and licenses hotel rooms, resorts, and residential properties worldwide. With a broad hotel network and market expansion strategies, Hilton is highly regarded for its responsiveness and flexible business model, capable of adapting to various market conditions and competitive environments.

Key Indicators: Price $258 USD, P/E 42.09 times

) Wyndham Hotels & Resorts, Inc. ###WH(

Wyndham focuses on budget and mid-range hotel markets, with a diverse brand portfolio and regional presence worldwide. Its growth stems from expanding its branches and improving hotel management.

Key Indicators: Price $104 USD, P/E 29.03 times

How to Select Suitable Hotel Stocks

When choosing hotel stocks, whether local or international, it is essential to evaluate multiple factors to determine growth potential and risk levels.

) Fundamental Analysis

Performance: Review revenue and profit trends over the past year to assess profitability. Analyze net profit margins to evaluate management efficiency. Consult financial ratios such as debt-to-equity to gauge financial stability.

Management: Study the track record and effectiveness of the management team. Consider the company’s strategic plans.

Assets and Liabilities: Assess the value of land, hotels, and properties. Monitor liabilities and accrued benefits.

Occupancy Rate: Indicates the proportion of occupied rooms. Average Daily Rate ###ADR( shows the average room price. Revenue Per Available Room )RevPAR### combines occupancy and ADR to measure performance.

( External Factors

Travel Trends: Evaluate growth prospects in domestic and international tourism. Analyze factors influencing travel demand.

Economic Conditions: Monitor the economic health of countries where the company operates. Analyze interest rates and exchange rates.

Geographical Factors: Assess the value of location and accessibility.

) Additional Considerations

Brand and Reputation: Strong brands often have competitive advantages.

Diversification: Companies with varied room types and locations tend to have lower risks.

Adaptability: Firms capable of adjusting to changing conditions hold an advantage.

Investment Channels for Thai Investors in Hotel Stocks

Thai investors can access hotel stocks through various methods, including domestic and international markets.

Stock Exchange of Thailand (SET)

Investors can open accounts with brokerage firms to buy and sell hotel stocks listed on the Thai market.

Advantages: Fast transactions, no currency exchange concerns, lower fees.

Disadvantages: Limited stock options, analysis may be more complex.

( Investment via Mutual Funds

Purchase units in funds focused on hotel stocks.

Advantages: Managed by professional teams, risk diversification, suitable for those lacking time.

Disadvantages: Higher management fees, less control over portfolio.

) Trading via Derivative Instruments

Trade hotel stocks through derivatives, without owning the underlying assets.

Advantages: Flexibility in opening and closing positions, profit from price movements, access to various products.

Disadvantages: High risk, leverage can amplify gains or losses, possible holding fees.

Overall Summary

2568 is expected to be a positive year for hotel stocks, both domestically and internationally, supported by tourism recovery, government policies, and returning travelers.

However, investors should remain cautious of risks such as economic uncertainties, political issues, or unforeseen events that could impact tourism. Keeping informed through reliable sources and monitoring company performance and industry trends are crucial for making sound investment decisions.