2568 Years of Opportunities for Investors: What's Good About the Hotel Sector?

The tourism sector is a key driver of the economy, especially as the global situation gradually returns to normal. Many investors are shifting their focus to stocks related to accommodation. If you are considering investing in hotel stocks in 2025, here’s what you need to know.

Key Points to Know About the Hotel Industry

Over time, the hotel industry has undergone significant changes, from the impacts of global events to shifts in traveler behavior. Importantly, the trend toward sustainable tourism is growing.

However, positive signals are clear. Southeast Asia, including Thailand, is seeing a continuous return of international tourists. This means that Thai hotel stocks have a solid foundation to generate attractive returns in the coming period.

5 Companies to Watch in the Thai Market

CENTEL - A leader in smart expansion planning

Central Plaza Hotel operates a diverse portfolio of hotel brands nationwide, especially in key tourist destinations.

A 19 billion baht investment over three years demonstrates a commitment to growth. In 2025, nine new rooms are scheduled to open, and core product quality will be upgraded to luxury standards. Revenue is expected to reach 15 billion baht, an increase of 23%.

P/E: 25.22 times | Current Price: 33.00 THB

MINT - Diversity as a strength

Minor International manages numerous hotel brands both in Thailand and globally. For fiscal year 2024, net profit was 7,750.22 million baht, up from 5,407.06 million baht last year, a 43.37% increase.

Good risk management through diversified hotel brands across segments helps the company withstand market volatility.

P/E: 20.85 times | Current Price: 28.25 THB

AWC - Comprehensive real estate assets

Asset World Corporation manages prime hotel locations in Thailand. Besides core hotel offerings, the company develops real estate projects linked to its hotel business.

The outlook for 2025 looks bright. Q1 performance is expected to show clear growth driven by ongoing tourism demand.

P/E: 16.19 times | Current Price: 2.96 THB

ERW - Nationwide coverage with low risk

The Erawan Group has a complete hotel network across Thailand, from luxury to mid-range. This diversification benefits from the recovery of domestic tourism.

Brands like Hop Inn target working professionals and budget travelers, with a positive outlook due to the rebound in meetings and seminars.

P/E: 12.67 times | Current Price: 3.24 THB

SHR - Focus on high-end customers

S Hotel & Resorts offers luxury resort services both in Thailand and internationally. By late 2024, it is expected to recover from its weak phase, with hotel renovation projects completed ahead of schedule.

P/E: 58.49 times | Current Price: 2.16 THB

Global Investment: 3 Foreign Companies

MAR ( Marriott International ) - Industry leader worldwide

Marriott is the largest hotel chain globally, with renowned brands like Marriott and Ritz-Carlton. Its deep loyalty program and investments in technology drive long-term growth.

P/E: 32.52 times | Current Price: 280 USD

HLT ( Hilton Worldwide ) - Trusted brand

Hilton has an extensive travel network, strong franchise services, and high customer satisfaction scores. Its flexible business model helps it succeed in various situations.

P/E: 42.09 times | Current Price: 258 USD

WH ( Wyndham Hotels & Resorts ) - Focus on mid-market

Wyndham targets budget and mid-range hotel markets with a diverse brand portfolio worldwide. Expansion and quality management lead to solid performance.

P/E: 29.03 times | Current Price: 104 USD

Analytical Tools for Choosing Good Hotel Stocks

Review Fundamentals

Study revenue and profit over the past 3-5 years to understand real trends. Gross profit margin and net profit margin reveal cost management efficiency. Debt-to-equity ratio indicates financial strength.

Experienced management and clear strategies are crucial, similar to assessing assets and liabilities in balance.

Hotel Metrics

Occupancy Rate (Occupancy Rate) indicates demand levels for rooms.

Average Daily Rate (ADR) shows the average price per room, reflecting pricing strategy.

RevPAR (Revenue per Available Room) combines the above two metrics to give a comprehensive overview.

Consider External Factors

Global tourism trends significantly impact the industry. Follow travel statistics from tourism authorities.

Economic conditions, interest rates, and exchange rates affect tourists’ purchasing power.

Hotel location, accessibility, and convenience are critical to operational efficiency.

Investment Channels for Thais

1. Stock Market of Thailand (SET)

Open an account with a broker and trade Thai hotel stocks directly. Advantages: convenient, fast, no currency exchange worries, low fees.

Disadvantages: fewer options, most large global companies are not listed here.

2. Hotel Equity Mutual Funds

Invest in units of funds specializing in tourism and hotels. Advantages: professional management, diversification, suitable for those without time.

Disadvantages: higher fees, limited control over the portfolio.

3. Foreign Investment via Securities Companies

Many Thai securities firms offer international stock trading. Advantages: diverse options, access to global travel stocks.

Disadvantages: currency exchange management, higher fees.

Is 2025 a Good Year for Hotel Stocks?

Many positive signals are emerging. Several governments are actively promoting tourism. The return of international tourists is ongoing, and the global economic structure is gradually adjusting.

However, risks remain. Market volatility, political situations, or unforeseen events can disrupt the tourism sector.

Smart investors should differentiate between “following” and “not losing their mind.” Continuously monitor news and company performance. A balanced strategy of risk seeking and risk mitigation will help you build sustainable assets.