We recently shared a list of the 12 Best Hotel Stocks To Buy According to Analysts. Now, let’s explore where H World Group Limited (NASDAQ:HTHT) fits among these top hotel stocks.
The hospitality industry is changing rapidly as travel rebounds post-COVID. A recent report from Zion Market Research estimated that the global hotel market was worth $1.37 trillion in 2023, with projections to nearly double to $2.99 trillion by 2032. This growth comes from increased travel demand, a revival in both leisure and business activities, and higher disposable incomes.
The “State of the Hospitality Market Report 2024,” released in January 2025, indicates exciting growth, projecting a rise from $3.44 trillion in 2023 to $3.98 trillion in 2024, reflecting a compound annual growth rate of 15.5%. This trend is influenced by improvements in transportation and infrastructure, the expansion of international hotel chains, and an increasing preference for experiential travel. North America leads the hospitality market, but the Asia-Pacific region is predicted to grow the quickest in the coming years.
In the U.S., the hospitality industry mirrors these trends. According to Mordor Intelligence, the market size is estimated at about $247.45 billion in 2025, with an expected growth rate of 4.87% until 2030, potentially reaching $313.87 billion.
A recent survey by the CBRE Group revealed that 94% of U.S. hotel investors are optimistic about maintaining or increasing their investments in 2025, up from 85% the previous year. Investors are attracted to central business districts and resort locations, favoring higher-priced hotel options.
We’ve analyzed stock screeners and hedge fund strategies to compile a list of 30 hotel stocks. We considered their potential for growth based on expert analysis and narrowed it down to the top 12 most favored by elite hedge funds for Q3 2024. H World Group Limited is among these top picks.
Why is hedge fund activity important? Research shows that following the investments of successful hedge funds can help outperform the market. Our quarterly stock picks have seen a return of 275% since May 2014, significantly outpacing market benchmarks.
H World Group Limited operates a variety of hotels, categorized into segments like Midscale and Economy Hotels. As of September 30, 2024, the company managed 10,845 hotels, contributing over a million hotel rooms. Their hotel turnover grew by 10.7% year-over-year in Q3 2024, while overall revenues increased by 2.4% in line with expectations. Notably, their Legacy Huazhu segment showed an impressive 11% growth year-over-year.
The company is actively expanding its portfolio, having opened 774 hotels in Q3 2024 alone. With 2,925 hotels in the pipeline, including nearly 2,900 from Legacy Huazhu, H World Group Limited is poised for further growth.
On our list of best hotel stocks, HTHT ranks 5th. While we see potential in HTHT, we believe that AI stocks may offer better returns in a shorter time. If you’re interested in promising AI investments, check out our report on the cheapest AI stock that trades under five times its earnings.
For more insights, you might want to explore our picks for the 20 Best AI Stocks To Buy Now and the Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article originally appeared on Insider Monkey.
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