If you're looking for the best hospitality stocks, you have a variety of options. This sector includes businesses based around lodging, food and drinks, tourism, and more, so you'll find hotel stocks, restaurant chains, and casinos among the top investment options.
Top hospitality stocks in 2025
Top hospitality stocks in 2025
The industry went through a difficult period during the COVID-19 pandemic. While many hospitality companies saw profits drop, the most successful were able to weather the storm and rebound as restrictions were relaxed. Here are the top hospitality stocks:
| Company | Market Capitalization | Description |
|---|---|---|
| Hilton Worldwide Holdings (NYSE:HLT) | $62.4 billion | Hotel company with thousands of properties around the world. |
| Texas Roadhouse (NASDAQ:TXRH) | $12.7 billion | Family restaurant chain offering a casual atmosphere. |
| MGM Resorts International (NYSE:MGM) | $11.0 billion | Gaming company known for its casinos, hotels, and resorts. |
| Choice Hotels International (NYSE:CHH) | $6.9 billion | Hotel franchisor that focuses on midscale and budget-friendly properties. |
| Monarch Casino & Resort (NASDAQ:MCRI) | $1.6 billion | Family-owned gaming company with dining, lodging, and live entertainment. |
1. Hilton Worldwide
1. Hilton Worldwide
With more than 8,300 properties around the globe, Hilton is one of the world's largest hotel companies. Its diverse portfolio includes several midscale and premium properties, as well as its luxury Waldorf Astoria and Conrad Hotels brands. It also boasts a loyalty program, Hilton Honors, with more than 200 million members.
Like other big travel and tourism stocks, Hilton has posted strong numbers, thanks to an increase in travel demand. In the third quarter of 2024, total revenue was $2.9 billion, a 7.3% year-over-year increase.
Another positive sign for investors is that Hilton has traditionally prioritized growth. To that end, it added a record 36,600 rooms to its system in the third quarter of 2024. It also approved 27,500 new rooms for development, for a development pipeline of 492,400 rooms (an 8.0% increase from 2023). With its popular brands and loyalty program, the company is well positioned for future growth.
2. Texas Roadhouse
2. Texas Roadhouse
Founded in 1993, Texas Roadhouse is a casual dining favorite among families. The restaurant company and its franchises operate more than 750 locations. Most of its restaurants are in the U.S., but the company has also expanded internationally.
The restaurant industry is a challenging one, especially recently with food, labor, and insurance costs going up. Texas Roadhouse is one of the companies best-equipped to handle those challenges. It has an excellent leadership team and a profit margin of more than 6% (very high for a restaurant), and it pays dividends to shareholders.
Even in a difficult economic environment, Texas Roadhouse grew in 2024. Over the first three quarters of the year, revenue increased by 13.5% to $3.9 billion, and net income increased by 36.7%. Over that same time period, it has opened 22 new company restaurants and nine franchise restaurants.
3. MGM Resorts
3. MGM Resorts
MGM has many of the top casino resorts in Las Vegas, and it also has properties in other locations, including Atlantic City, Detroit, and China. Although much of its business centers around Las Vegas, MGM has expanded its operations over the years. One of the biggest recent examples is its plan to launch a $9 million casino resort in Osaka, Japan, in 2030.
While MGM’s iconic properties are cornerstones of its business, it also expanded to online betting with BetMGM in 2021. It has invested heavily in the online betting experience, and 2024 saw that investment pay off, with BetMGM bringing in $1 billion in revenue over the first half of the year.
The combination of MGM’s Las Vegas properties, international operations, and online gaming services give this leisure company good growth potential. If one segment isn’t doing well, another can pick up the slack, as was the case in the third quarter of 2024. Revenues for its Las Vegas Strip properties only ticked up by 1% from the prior year, but MGM China’s revenues jumped by 14% to $929.5 billion.
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4. Choice Hotels
4. Choice Hotels
Choice Hotels is a hotel franchisor with more than 7,000 properties. Some of its most popular brands include Comfort Inn, Quality Inn, and Radisson. Since it’s a franchisor, Choice Hotels doesn’t break the upkeep or maintenance costs of its properties. Those costs falls on the franchise owners, who pay a licensing fee and a percentage of revenue to use the hotel chain’s brands and systems.
While other hotel chains have a mix of budget and luxury properties, Choice Hotels primarily offers midscale properties. Many of these are off interstates or in suburban areas. If you’re looking for a hotel stock that isn’t as reliant on business travelers and high-end properties, this could be a good pick. Its business model and the types of properties its offers also made it more resilient than other chains during the COVID-19 pandemic.
Choice Hotels has also been doing well as travel demand has returned these last few years. It set a record with $428 million in revenue in the third quarter of 2024, and net income increased by 15%. Global hotel openings in that quarter were up 75% year-over-year, and its global pipeline increased to more than 110,000 rooms, also a record high.
5. Monarch Casino & Resort
5. Monarch Casino & Resort
Monarch Casino & Resort has two locations -- one in Reno, Nevada, and the other in Black Hawk, Colorado. Even though this hospitality company doesn’t operate many properties, its two locations have delivered high revenue numbers.
For the first three quarters of 2024, Monarch posted $387.7 million in revenue, a 3.9% increase from 2020. Net income was $68.6 million, a 6.7% increase from its 2023 numbers. The company has been proactive about expanding its casinos and its game offerings, both of which could help Monarch attract more guests and increase profits even more.
With its consistent growth and expansion potential, this casino and resort company is a good long-term bet. Nevada and Colorado are also two states seeing substantial population growth, so Monarch’s locations should continue to get a steady influx of visitors.
Related consumer discretionary topics
Hospitality trends
Trends to watch in hospitality
Business has been booming for many hospitality companies, as consumers have been eager to go out, travel, and enjoy themselves post pandemic.
Customer loyalty is always important in the hospitality industry. Companies are investing heavily in loyalty programs and in providing a personalized experience to make their customers feel special. This can have the dual benefit of bringing in repeat business and encouraging people to spend more with their preferred brands.
Many hospitality companies have embraced online tools. Social media marketing is a popular way for travel companies, including everything from hotels to cruise line stocks, to attract customers and particularly young customers. Artificial intelligence (AI) has been used to help streamline booking management and customer support.
The hospitality industry is highly competitive. The companies that succeed are the ones that can strategically expand their operations and adjust to changing market conditions when needed.
