Marriott International Vs. InterContinental Hotels Group: Which High-Margin Hotel Stock Is The Better Buy?

PropNotes
7.46K Followers
(13min)

Summary

  • Hotel chains are under-considered investments for most investors, despite their strong historical and financial performance.
  • Marriott and IHG Group are leading hotel operators with robust profit margins and growth prospects, but we think IHG is the better buy.
  • MAR boasts higher profitability, but IHG's potential for margin improvement and a strong pipeline makes it a compelling investment with more room for appreciation.
  • Both companies face some risks, but IHG's top and bottom line growth potential make it appear attractive in today's market.
Piccadilly Circus Regent street with closeup of sign entrance to the Ritz hotel

krblokhin/iStock Editorial via Getty Images

When it comes to investing, in our view, hotel chains are largely under-considered by investors.

Online, you'll see very little chatter about even the largest brands on investing websites, and here on Seeking Alpha, between Marriott International (NASDAQ:

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of IHG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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