This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

8 Hotel and Resort Stocks With Upside

NEW YORK (TheStreet) -- The hotels and resorts industry is expected to generate revenue of $6.4 billion and profit of $787 million during 2010 to 2011, based on strong domestic and international tourism and recovery in global economic growth.

The upturn in economic activity, led by robust movement in household disposable income, business revenue and profit, would rebound tourism and improve occupancy in the hotels and resorts industry. Meanwhile, investment in new hotels and consolidation among operators will increase enterprise and establishment numbers by 0.8% and 1.3% to 1,018 and 1,292, respectively. Besides, the industry's employment and wages are growing by 3.7% and 4.4%, respectively.

Analysts expect these eight hotel and resort stocks to generate lucrative returns for investors over the next 12 months. These stocks have 13% to 32% upside with strong buy, hold ratings.


8. MGM Resorts International (MGM), a holding company, is engaged in providing gaming, hospitality and entertainment services through its wholly owned subsidiaries. The company owns and operates casino resorts that include gaming, hotels, dining, entertainment, retail and other resort amenities.

Of the 27 analysts covering the stock, 44% rated a buy and 48% advised a hold. Analysts polled by Bloomberg expect the stock to gain an average 13.5% to $16.10 in the next 12 months.

Total revenue for the first quarter of 2011 increased 3.2% to $1.50 billion from the year-ago period. Net loss narrowed to $89.9 million or 18 cents per share, compared to $96.7 million or 22 cents per share in the first quarter of 2010. The revenue per available room (RevPAR) during the quarter increased to $113 from $97 in the same quarter of 2010. Occupancy rate rose to 87% from 85%.

The company's non-gaming division, MGM Hospitality, recently announced plans to expand its operations in China by opening 30 hotels over the next three years, in a bid to capture the growing demand for luxury travel. Besides, MGM's initial public offering on the Hong Kong Stock Exchange raised $1.4 billion with the company owning a 51% stake and 29% stake retained by Ms. Pansy Ho, a Hong Kong-based businessperson. MGM Resorts would receive $311 million in net proceeds from Ms. Ho.

Stock quotes in this article: MGM, BEE, HST, CHH, HOT, LHO, LVS 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs