Summer is here and various industries should participate in the active summer travel business, which includes plane travel, lodging, cruises, amusement parks, and even gasoline for automobile travel. In this post, I am covering stocks that participate in summer travel from a hotel and motel lodging standpoint, and which also pay a dividend.
The highest yielder on the list is Intercontinental Hotels Group plc (NYSE:IHG), which is a British based owner and operator of hotels and resorts, including Crowne Plaza, Holiday Inn, Holiday Inn Express, InterContinental, Hotel Indigo, Staybridge Suites, and Candlewood Suites. It has a price earnings ratio of 12.5, and a PEG of 2.8. The stock generates a 2% yield.
Choice Hotels International Inc. (NYSE:CHH) is a Silver Spring, Maryland-based company which operates various hotel franchises including Comfort Inn, Comfort Suites, Quality, Clarion, Econo Lodge, Rodeway Inn, MainStay Suites, Sleep Inn, Suburban Extended Stay Hotel, Cambria Suites, and Flag Hotels. It has a P/E of 24, and a PEG of 1.8. The stock yields 1.5%.
Marcus Corp. (NYSE:MCS) is based in Milwaukee, Wisconsin, and is sort of a hybrid company. It owns and operate hotels in Wisconsin, Missouri, Illinois, and Ohio. It also manages hotels in Wisconsin, Minnesota, Texas, and California. In addition to its lodging business, it owns movie theaters with over 500 screens in the Midwest. The stock, which yields 1.4%, has a P/E of 23, and a PEG of 1.4.
Sonesta International Hotels Corp. (NASDAQ:SNSTA) operates hotels in Boston, Massachusetts, where it is based, as well as in Key Biscayne, Florida, New Orleans, Louisiana, Coconut Grove, Orlando, and Sunny Isles Beach, Florida. It also operates hotels in international destinations such as Cairo, Luxor, and other cities in, Egypt, Qatar, Peru, St. Maarten, and Brazil. It also has five Nile River cruise vessels in Egypt. Its latest quarterly revenue was down over 28%, but it pays a yield of .8%.
Marriott International Inc. (NASDAQ:MAR) operates and franchises hotels in the Americas, Europe, Asia, the Middle East, the United Kingdom, and Africa. Its has a P/E of 26, and a PEG of 1.6. Its yield is .7%.
Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) has a great stock ticker symbol. They operate luxury and upscale hotels including St. Regis Hotels & Resorts, The Luxury Collection, W Hotels, Westin Hotels & Resorts, Le Meridien, Sheraton Hotels & Resorts, and Four Points by Sheraton. It has a P/E of 13.2 and aPEG of 1.8. It has a yield of .6%.
Hilton Hotels Corp. (HLT-OLD) is based in Beverly Hills, owns and operates Doubletree, Embassy Suites, Hilton, Hilton Garden Inn, Homewood Suites by Hilton, Hampton, Waldorf-Astoria, and Conrad. It has a P/E of 25, a PEG of 2.2, and pays a yield of .5%.
Orient-Express Hotels Ltd. (OEH) is a Bermuda based company which owns and operates deluxe hotels worldwide. It has a P/E of 50.5, and a PEG of 1.75. It pays a small .2% yield.
Disclosure: The author does not own any of the above.