If you're looking for the best hospitality stocks, you have a variety of options. This sector includes businesses centered on lodging, food and beverages, tourism, and other related activities. Investors have the choice of growth-oriented hospitality companies and stable earners that pay reasonable dividends.
Top hospitality stocks in 2026
The hospitality market is steadily growing and was estimated to be worth $5.5 trillion in 2025. Here are five top hospitality stocks:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Hilton Worldwide (NYSE:HLT) | $69.3 billion | 0.20% | Hotels, Restaurants and Leisure |
| Texas Roadhouse (NASDAQ:TXRH) | $12.6 billion | 1.43% | Hotels, Restaurants and Leisure |
| Hyatt Hotels (NYSE:H) | $15.6 billion | 0.37% | Hotels, Restaurants and Leisure |
| Wyndham Hotels & Resorts (NYSE:WH) | $5.8 billion | 2.12% | Hotels, Restaurants and Leisure |
| Marriott International (NASDAQ:MAR) | $85.8 billion | 0.83% | Hotels, Restaurants and Leisure |
1. Hilton Worldwide
NYSE: HLT
Key Data Points
With 9,000 properties worldwide, Hilton (HLT +0.74%) 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 235 million members.
Hilton prioritizes growth, which is a positive sign for investors. It had a development pipeline of 515,400 rooms across 128 countries and territories as of Sept. 30, 2025. That includes 26 countries and territories where Hilton doesn't have any properties yet.
Hilton stock also outperformed both the S&P 500 index and the S&P Hotel index from 2020 through 2024. With its popular brands and loyalty program, the hotel giant is well-positioned for future growth.
2. Texas Roadhouse
NASDAQ: TXRH
Key Data Points
Founded in 1993, Texas Roadhouse (TXRH -0.31%) is a casual dining favorite among families. The restaurant company and its franchises operate more than 800 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 rising costs for food, labor, and insurance. Texas Roadhouse is one of the companies best-equipped to handle those challenges. It has an excellent leadership team, consistently high profit margins (7.5% as of September 2025), and it pays dividends to shareholders.
Despite commodity inflation driving up operating costs, Texas Roadhouse has navigated this situation by bringing in more foot traffic. Revenue increased 11.7% year over year to $4.4 billion for the first three quarters of 2025. Higher sales helped Texas Roadhouse slightly increase its net income by 1% to $320.9 million over the same time period.
3. Hyatt Hotels
NYSE: H
Key Data Points
Hyatt Hotels (H -0.88%) takes a different approach than hotel giants like Marriott and Hilton, which have massive portfolios of properties. The Hyatt portfolio comprises over 1,450 properties across more than 80 countries. Instead of focusing on quantity, Hyatt targets the upscale market, although it also offers some budget-friendly brands.
In the first three quarters of 2025, Hyatt's revenue ticked up 5.3% year-over-year to $5.3 billion. Occupancy rates over that same time frame increased 1.1% year over year to 71.0%, but rates in certain regions rose much more.
Hyatt occupancy increased by 3.4% in Greater China, 3.0% in the rest of the Asia Pacific region, and 3.9% in the Middle East and Africa, demonstrating the success of the hotel's international expansion.
EBITDA
4. Wyndham Hotels & Resorts
NYSE: WH
Key Data Points
5. Marriott International
NASDAQ: MAR
Key Data Points
Marriott International (MAR -0.61%) is the world's largest hotel chain, boasting over 9,700 properties with more than 1.7 million rooms. Its luxury brands include The Ritz-Carlton, St. Regis, and JW Marriott Hotels, and it also offers more budget-friendly brands, such as Courtyard and Fairfield.
Even as the biggest hotel chain, Marriott is still growing. It has a development pipeline of 3,923 properties with more than 596,000 rooms as of Sept. 30, 2025. Revenue in the first three quarters of 2025 grew 5% year over year to $4 billion, and net income grew 12% to $2.2 billion.
If you're looking for a resilient hospitality investment, Marriott is a good choice due to its size and market position. It also boasts the world's largest loyalty program, with more than 250 million members, which helps drive repeat business.
Benefits and risks of investing in hospitality stocks
Hospitality stocks offer several benefits for shareholders, including:
- High growth potential: Hospitality stocks often outperform when the economy is strong, because consumers have more disposable income to spend on trips.
- International diversification: Many hospitality companies operate globally, providing shareholders with exposure to international markets.
- Passive income via dividends: Some hospitality stocks pay above-average dividends.
However, there are also a few common risks with these stocks:
- Vulnerable to economic downturns: Since hospitality companies are cyclical businesses, their earnings can plummet during downturns and recessions.
- Low profit margins: Hospitality companies typically have substantial fixed costs, which prevent them from achieving high profit margins. For hotels, 10% is a healthy profit margin, and restaurants average 3% to 5%.
- Location dependence: The success of a hospitality business is partly dependent on its location. If tourism declines, that can have a significant impact on revenue.
How to invest in hospitality stocks
Once you've picked out a hospitality stock you like, follow these steps to invest in it:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the stock ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Related investing topics
Trends to watch in hospitality
Business has been booming for top hospitality companies, as consumers are eager to go out, travel, and enjoy themselves. Here are the key trends shaping the hospitality industry recently:
- Many large hotel brands are opting for asset-light models by franchising, although this is less common among luxury hotels.
- Home sharing, led by the success of Airbnb (ABNB -1.23%), is an increasingly popular alternative to hotels, growing from 10% to 14% of booking value between 2017 and 2023.
- Hospitality companies are using artificial intelligence (AI) to streamline booking management and customer support.
Last but not least, 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.
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