Hotels
The hospitality sector is a diverse section of the economy keyed to discretionary dollars. Hospitality is composed of hotels and motels; tourist destinations like theme parks, and the catering industry. This section of Value Investing explores the hotel industry. Attached are articles that explain the hotel industry, their industry standards and financial models. Several hotel chains are quite effective with earning a good profit. Others have a long way to go to measure up.
Members of this pool of similar investments include:
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- Marriott International Inc.
- Hyatt Hotels Corp.
- Hilton Worldwide Holdings Inc.
- Wyndam Hotels and Resorts Inc.
- InterContinental Hotels Group PLC
- Choice Hotels
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One of the primary characteristics among this group is that the primary source of sales are traditional hotel operations. Many other companies noted as hotels have gambling revenue as the primary or a strong secondary source of sales. This membership has very little revenue generated from gambling operations. In addition, the pool of members have a limited if any income derived from resort operations. A couple of the members do; however, it is not their primary focus and revenues derived from resort operations is less than 10% of the overall revenue streams. Finally, all six members derive more than 70% of their sales from United States locations and not international sales. This allows for a more comparative relationship when evaluating and creating the business decision matrix value investors adhere to for buying low and selling high.
Heads on Beds – Hotel Management
Hospitality Industry Characterized by High Fixed Costs
Purchased Choice Hotels
Value Investing – Absolute Dollars