Three Hotel Stocks to Keep an Eye On Amid Industry Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 24 2025
0mins
Source: NASDAQ.COM
Industry Overview: The Zacks Hotels and Motels industry includes companies involved in owning, managing, and franchising hotels, as well as developing vacation ownership products and mobile accommodations, facing challenges like economic uncertainty and labor shortages.
Current Trends: Key trends affecting the industry include economic headwinds leading to reduced leisure and corporate travel demand, significant labor shortages impacting service quality, and a decline in revenue per available room (RevPAR) and occupancy rates.
Market Performance: The Zacks Hotels and Motels industry has underperformed the S&P 500, with a decline of 9.4% over the past year, while the industry's valuation remains lower than the S&P 500 average, indicating a lack of investor confidence.
Stocks to Watch: Notable companies in the industry include Marriott, Hilton, and Choice Hotels, each showing potential for growth through digital transformation, unit expansion, and strategic investments, despite varying stock performance over the past year.
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Analyst Views on HLT
Wall Street analysts forecast HLT stock price to fall
18 Analyst Rating
11 Buy
7 Hold
0 Sell
Moderate Buy
Current: 317.830
Low
253.00
Averages
292.37
High
340.00
Current: 317.830
Low
253.00
Averages
292.37
High
340.00
About HLT
Hilton Worldwide Holdings Inc. is a global hospitality company that is engaged in managing, franchising, owning and leasing hotels and resorts, and licensing its intellectual property, including brand names, trademarks and service marks. It has a portfolio of over 24 brands comprising more than 8,400 properties and more than 1.25 million rooms in 140 countries and territories. It has two segments: management and franchise and ownership. The management and franchise segment includes all the hotels it manages for third-party owners, as well as all franchised hotels that license its intellectual property (IP), and/or use its booking channels and related programs, and where it provides other contracted services to third-party owners. The ownership segment includes nightly hotel room sales, food and beverage sales and other services at its consolidated owned and leased hotels. Its brands include Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cruise Line Route Changes: In response to the violence, Carnival and Norwegian Cruise Lines have canceled planned stops in Puerto Vallarta, reflecting the industry's heightened sensitivity to safety risks and their operational adaptability in crisis situations.
- Hotel Brand Exposure: Analysts highlight that Hyatt has 8.5% of its total rooms in Mexico, while Marriott has 3.3%, indicating significant financial exposure for these brands amid the current unrest and potential impacts on occupancy rates.
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- Flight Cancellations: U.S. and Canadian airlines halted flights to Puerto Vallarta and Guadalajara, waiving change fees for affected travelers, indicating a strong response to the deteriorating security situation.
- Government Warnings: The U.S. State Department advised citizens to shelter in place due to ongoing security operations and related road blockages, reflecting the heightened tension and uncertainty in the region.
- School Closures: Several Mexican states canceled school on Monday in response to the violence, highlighting serious concerns about safety and disrupting students' normal educational activities.
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- Travel Warnings Escalate: The U.S. State Department has broadened its travel warnings across multiple regions in Mexico, advising tourists to shelter in place in popular destinations like Cancun and Puerto Vallarta, indicating a direct threat to the tourism industry due to escalating violence.
- Cruise Line Route Changes: In response to the violence, Carnival and Norwegian Cruise Lines have canceled planned stops in Puerto Vallarta, reflecting the industry's heightened sensitivity to safety risks and their operational adaptability in crisis situations.
- Hotel Brand Exposure: Analysts highlight that Hyatt has 8.5% of its total rooms in Mexico, while Marriott has 3.3%, indicating significant financial exposure for these brands amid the current unrest and potential impacts on occupancy rates.
- Insurance Policy Limitations: As the violence is now classified as a foreseeable event, many travel insurance providers are no longer offering coverage for cancellations related to this unrest, leaving travelers facing greater uncertainty and potential financial losses when planning their trips.
See More
Violence Erupts in Mexico After Drug Lord's Death
- Escalating Violence: Following the military's killing of drug lord 'El Mencho,' violent incidents erupted across several Mexican states, with burning vehicles and gunmen blocking highways, leading to increased social unrest and public safety concerns.
- Flight Cancellations: U.S. and Canadian airlines halted flights to Puerto Vallarta and Guadalajara, waiving change fees for affected travelers, indicating a strong response to the deteriorating security situation.
- Government Warnings: The U.S. State Department advised citizens to shelter in place due to ongoing security operations and related road blockages, reflecting the heightened tension and uncertainty in the region.
- School Closures: Several Mexican states canceled school on Monday in response to the violence, highlighting serious concerns about safety and disrupting students' normal educational activities.
See More
US Suspends TSA PreCheck and Global Entry Programs Amid Government Shutdown
- Reason for Suspension: The Department of Homeland Security suspended TSA PreCheck and Global Entry programs on Sunday due to a partial government shutdown, affecting security processes at over 200 airports and causing significant inconvenience for millions of travelers, highlighting the direct impact of government operations on public travel.
- Membership Impact: As of 2024, TSA PreCheck has over 20 million active members, with approximately 34% of screened passengers being program members; the suspension will significantly increase wait times at security checkpoints, potentially leading travelers to choose alternative travel methods, thereby affecting airline revenues.
- Flight Cancellations: In anticipation of a massive winter storm, airlines have canceled over 6,000 flights and waived cancellation and change fees at multiple East Coast airports, demonstrating the dual impact of weather and policy on the aviation industry.
- Industry Reaction: The airline industry expressed strong dissatisfaction with the suspension of programs due to the government shutdown, viewing travelers as political pawns; last year's shutdown already cost the industry $6.1 billion and affected about 6 million travelers, indicating a long-term threat to the tourism sector from policy instability.
See More
Intense Competition for International Space Station Successor
- Axiom Funding Success: Axiom Space raised $350 million last week from investors including Type One Ventures and 1789 Capital, with funds earmarked for completing the first module's construction, scheduled for launch in 2028 to dock with the ISS, thereby laying the groundwork for its future independent space station.
- Module Development Progress: The first module, a Payload Power Thermal Module (PPTM), is set to link with a second habitation module in 2029, showcasing Axiom's strategic timeline and commitment to establishing a new independent space station.
- Market Competition Landscape: With Axiom and Vast racing to develop new space stations, Axiom's module is expected to be operational in 2029, potentially ahead of Vast's Haven-1, which could give Axiom a competitive edge in the market.
- Uncertain IPO Prospects: Despite Axiom's funding achievements, its private market valuation has declined from $2.6 billion in 2023 to $2 billion in 2025, raising concerns about its long-term profitability and casting doubt on its IPO prospects.
See More
Axiom Space Raises $350 Million for New Space Station Construction
- Funding Milestone: Axiom Space recently secured $350 million from various private investors, including venture capital firms Type One Ventures and 1789 Capital, which will be utilized to complete the construction of its first space station module, reflecting strong market confidence in its project.
- Module Construction Timeline: Axiom plans to launch its first module, the Payload Power Thermal Module (PPTM), in 2028, followed by a second habitation module in 2029, which will form an independent space station, positioning Axiom favorably in the competitive landscape.
- Competitive Market Dynamics: While Axiom faces stiff competition from companies like Vast, which aims to launch its own space station module in 2027, Axiom's modules are expected to be habitable by 2029, potentially giving it a competitive edge in the market.
- Uncertain IPO Prospects: Despite the funding progress, Axiom's private market valuation has declined from $2.6 billion in 2023 to $2 billion in 2025, which may adversely affect its future IPO plans, prompting investors to proceed with caution.
See More
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- Project Background: Orbital Reef, led by Blue Origin and backed by billionaire Jeff Bezos, includes partners like Sierra Space, Redwire, Boeing, and Amazon, showcasing significant financial and technical strength in the space station race.
- Competitor Analysis: Starlab boasts the largest funding and international partnerships, including Voyager Technologies, Hilton, Janus Henderson, Leidos, Northrop Grumman, and Palantir, highlighting its competitive edge in the market.
- Independent Team Advantages: Axiom Space has successfully sent astronauts to the ISS for training, with a fifth mission scheduled for next year, while Vast plans to send astronauts for a 14-day training mission in summer 2027, enhancing its market competitiveness.
- Investment Outlook: With the ISS expected to cease operations in 2030, stocks from the Orbital Reef and Starlab teams are becoming focal points for investors, as the market competition remains open and investors need to choose wisely.
See More
