In this article, we will look at the 10 Most Undervalued Hotel Stocks To Invest In Now.
On March 10, Tom Lee, Head of Research at Fundstrat Global Advisors, appeared on CNBC’s ‘Closing Bell’ to talk about his base case for equity markets. While he is not negative about stocks, he does have a base case that at some point this year, we are going to go down 20% and have a bear market. Lee said that he expects that decline to happen when the market does not respond to good news.
According to him, right now we are in a period where we already had a bear market in software, the Mag 7, and crypto, and that has already taken out a lot of speculation. He bets that markets will actually lift through the end of the month, and that we are going to be positive for March, maybe hitting 7300. It is only later in the year that he thinks a bear market may show itself.
READ ALSO: 15 Best Penny Stocks to Buy According to Reddit AND 12 Best Stocks That Will Always Grow.
Lee further said that looking back at the last two days, oil is $15 higher than it was last week, but the S&P is higher, and so he thinks that the market is handling higher oil prices better.
With these broader market trends in view, let’s look at the most undervalued hotel stocks to invest in now.
Our Methodology
We sifted through the Finviz stock screener to compile a list of stocks associated with the hotel industry with a forward P/E below 15 and selected the top 10 that were the most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on March 11.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Most Undervalued Hotel Stocks To Invest In Now
10. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is one of the most undervalued hotel stocks to invest in now. Melco Resorts & Entertainment Limited (NASDAQ:MLCO) was upgraded to Buy from Neutral by UBS on February 16, with the firm adjusting the price target on the stock to $9.50 from $9.80. It told investors in a research note that shares were down 27% year-to-date, likely due to concerns regarding margin pressure, trademark license fee hike, and market share losses.
Going forward, the firm believes that Melco Resorts & Entertainment Limited’s (NASDAQ:MLCO) asset enhancements at City of Dreams in Macau should allow it to largely offset margin pressures and higher branding fees in 2026. UBS contended that the shares are trading at an attractive valuation, and that it sees the company posting “robust” free cash flow in 2026 and 2027 as its capital expenditures ease.
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) also received a rating update from Citi on February 12. The firm cut the price target on the stock to $10.50 from $12, maintaining a Buy rating on the shares.
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) develops and operates resort facilities, hotels, and casinos in the Philippines and Macau. The company’s three Macau casinos include City of Dreams, Studio City, and Altira Macau.
9. Marriott Vacations Worldwide Corporation (NYSE:VAC)
Marriott Vacations Worldwide Corporation (NYSE:VAC) is one of the most undervalued hotel stocks to invest in now. Marriott Vacations Worldwide Corporation (NYSE:VAC) was downgraded to Market Perform from Outperform by Citizens on March 9, without assigning a price target. The rating update came after the fiscal Q4 report, with the firm telling investors in a research note that the company’s turnaround pitch to investors has not changed under the new CEO. The firm believes that the board of Marriott Vacations Worldwide Corporation (NYSE:VAC) should have explored some strategic alternatives, given that the stock was down 60% over the three-year tenure of the prior CEO. Citizens further contended that it has “no idea how much dysfunction remains within the organization today”.
Marriott Vacations Worldwide Corporation (NYSE:VAC) also received a rating update from Mizuho on March 5. The firm upgraded the stock to Outperform from Neutral, lifting the price target to $104 from $58 and stating that the company’s new CEO, Matthew Avril, has brought its sales force disruption under control. The firm believes that the company is leveraging experiences and events to drive owner upgrades, and that may be an underappreciated “major catalyst” for the shares.
Marriott Vacations Worldwide Corporation (NYSE:VAC) is a global vacation company involved in rental and resort, vacation ownership, exchange, rental and resort, and property management, as well as related products, services, and businesses. The company’s operations are divided into the Vacation Ownership and Exchange & Third-Party Management segments.
8. Travel + Leisure Co. (NYSE:TNL)
Travel + Leisure Co. (NYSE:TNL) is one of the most undervalued hotel stocks to invest in now. Truist lifted the price target on Travel + Leisure Co. (NYSE:TNL) to $88 from $71 on March 3, maintaining a Buy rating on the shares. The rating update came as part of a broader research note on the Lodging names, with the firm telling investors that it is adjusting its valuations as it rolls forward its models to 2027 estimates.
Travel + Leisure Co. (NYSE:TNL) also received a rating update from Goldman Sachs on February 19, with the firm lifting the price target on the stock to $81 from $71 while maintaining a Neutral rating on the shares. Goldman Sachs stated that the company delivered another solid quarter, with initial 2026 guidance appearing conservative despite some complications from the Resort Optimization Initiative and a mix shift to new owners.
It added that guidance aligns with consensus, excluding a $15 million-$25 million EBITDA benefit from the initiative, and that long-term prospects remain attractive, with mid-single digit EBITDA growth and mid-teens EPS growth anticipated. The firm added that near-term execution on new owner VPG growth will be key for investor conviction.
Travel + Leisure Co. (NYSE:TNL) offers vacation ownership, managed rental, and exchange services. The company owns exchange properties and vacation resorts, and has a comprehensive cruise coverage. Its offerings include Alaskan, All-Inclusive, Caribbean, Disney, European, Family, and River cruises.
7. Choice Hotels International, Inc. (NYSE:CHH)
Choice Hotels International, Inc. (NYSE:CHH) is one of the most undervalued hotel stocks to invest in now. On March 10, Morgan Stanley cut the price target on Choice Hotels International, Inc. (NYSE:CHH) to $83 from $91 and maintained an Underweight rating on the shares. The firm told investors in a research note on the group that fiscal Q4 results and 2026 guidance from its covered lodging companies “generally” surpassed estimates. However, it added that the US-Israel conflict with Iran warrants near-term caution.
Choice Hotels International, Inc. (NYSE:CHH) also received a rating update from Barclays on February 20. The firm lifted the price target on the stock to $101 from $98 while maintaining an Underweight rating on the shares. The rating update came after the company’s fiscal Q4 report, with the firm telling investors that Choice Hotels International, Inc.’s (NYSE:CHH) “conservative” RevPAR guidance creates likely upside to estimates with any improvement to the macro backdrop from here. However, the firm also stated that it has little confidence in sustainable acceleration in net room growth for the company.
Choice Hotels International, Inc. (NYSE:CHH) is involved in the franchising and operation of hotels. The company’s operations are divided into the Hotel Franchising and Corporate and Other segments.
6. Hilton Grand Vacations Inc. (NYSE:HGV)
Hilton Grand Vacations Inc. (NYSE:HGV) is one of the most undervalued hotel stocks to invest in now. Citizens lifted the price target on Hilton Grand Vacations Inc. (NYSE:HGV) to $55 from $50 on March 9, maintaining an Outperform rating on the shares. The firm stated in a research note that the company’s financial engineering should continue to benefit performance, as around $600 million should be bought back this year. This represents around 20% of the outstanding shares. Citizens further stated that it views the shares as undervalued.
In another development, Jefferies lifted the price target on Hilton Grand Vacations Inc. (NYSE:HGV) to $50 from $46 on March 2, maintaining a Hold rating on the shares and telling investors that timeshares have proven stable and durable in a wide range of circumstances. However, it also stated that the firm believes the environment to be supportive for Hilton Grand Vacations Inc. (NYSE:HGV) to continue integrating its acquisitions, namely Bluegreen and Diamond, and benefit from the gradual recovery in Hawaii, with growth remaining “modest”.
Hilton Grand Vacations Inc. (NYSE:HGV) is a global timeshare company involved in developing, marketing, managing, selling, and operating timeshare resorts, timeshare plans, and ancillary reservation services, primarily under the Hilton Grand Vacations brand. The company’s operations are divided into the Real Estate Sales and Financing and Resort Operations and Club Management segments.
5. Wyndham Hotels & Resorts, Inc. (NYSE:WH)
Wyndham Hotels & Resorts, Inc. (NYSE:WH) is one of the most undervalued hotel stocks to invest in now. On March 10, Morgan Stanley cut the price target on Wyndham Hotels & Resorts, Inc. (NYSE:WH) to $85 from $89, maintaining an Overweight rating on the shares. In a note on the group, the firm told investors that its covered lodging companies “generally” exceeded estimates in fiscal Q4 results and 2026 guidance. However, it also stated that the conflict in Iran warrants near-term caution.
The same day, Wyndham Hotels & Resorts, Inc. (NYSE:WH) announced that its Board of Directors declared a quarterly cash dividend of $0.43 per share on its common stock, payable March 30 to shareholders of record as of March 20. Management stated that the cash dividend represents a 5% growth from the $0.41 per share quarterly dividend paid during 2025.
Wyndham Hotels & Resorts, Inc. (NYSE:WH) also received a rating update from Goldman Sachs on February 20. The firm adjusted the price target on the stock to $87 from $79, maintaining a Neutral rating on the shares.
Wyndham Hotels & Resorts, Inc. (NYSE:WH) is involved in the franchise and operation of hotels under the Wyndham brand. The company’s operations are divided into the Hotel Franchising and Hotel Management segments.
4. MGM Resorts International (NYSE:MGM)
MGM Resorts International (NYSE:MGM) is one of the most undervalued hotel stocks to invest in now. MGM Resorts International (NYSE:MGM) announced on February 25 a new sales structure to bolster customer experience and streamline event planning. The company stated that it revamped its sales team to bolster collaboration across its portfolio, support continued growth in events, meetings, and group verticals, and deliver a more customer-first experience. Management stated that the updates encompass new leadership appointments, an improved approach to how teams support customers across the company’s properties, and a refined organizational structure.
In a separate development, MGM Resorts International (NYSE:MGM) received a rating update from Morgan Stanley on February 11. The firm lifted the price target on the stock to $34 from $33 and maintained an Underweight rating on the shares, telling investors in an earnings recap note that MGM Resorts International (NYSE:MGM) printed a fiscal Q4 beat on better Las Vegas and Macau results.
MGM Resorts International (NYSE:MGM) is a global entertainment and gaming company that owns international and domestic locations. Its segments include Las Vegas Strip Resorts, MGM China, and Regional Operations.
3. Trip.com Group Limited (NASDAQ:TCOM)
Trip.com Group Limited (NASDAQ:TCOM) is one of the most undervalued hotel stocks to invest in now. On February 27, JPMorgan cut the price target on Trip.com Group Limited (NASDAQ:TCOM) to $75 from $90 while maintaining an Overweight rating on the shares. The rating update came after Trip.com Group Limited (NASDAQ:TCOM) reported unaudited financial results for fiscal Q4 and full year 2025.
For fiscal Q4 2025, the company reported net revenue of RMB15.4 billion (US$2.2 billion), reflecting a growth of 21% from the prior year period, driven primarily by resilient travel demand. However, net revenue for fiscal Q4 2025 decreased by 16% from the previous quarter, primarily due to seasonality. Net revenue for the full year 2025 was RMB62.4 billion (US$8.9 billion), reflecting a growth of 17% from 2024.
Trip.com Group Limited (NASDAQ:TCOM) further reported that accommodation reservation revenue for fiscal Q4 2025 was RMB6.3 billion (US$899 million), up 21% from the prior year period, driven primarily by growth in accommodation reservations. Accommodation reservation revenue for fiscal Q4 2025, however, decreased by 22% from the previous quarter, primarily due to seasonality.
Trip.com Group Limited (NASDAQ:TCOM) is a global one-stop travel platform that offers hotels, packaged tours, airline tickets, accommodations, corporate travel management, property management systems, advertising services, and more. The company operates under a range of brands, including Ctrip, Qunar, Trip.com, and Skyscanner.
2. Expedia Group, Inc. (NASDAQ:EXPE)
Expedia Group, Inc. (NASDAQ:EXPE) is one of the most undervalued hotel stocks to invest in now. On March 11, Bernstein cut the price target on Expedia Group, Inc. (NASDAQ:EXPE) to $253 from $256 while reiterating a Market Perform rating on the shares. The firm stated that all three OTAs delivered a top and bottom-line beat, and that fiscal Q4 was, financially, a strong finish to 2025. Guidance was ahead of consensus for 26, and all grew market shares profitably in 2025 on a full-year basis. However, the firm also stated that concerns associated with the potential AI disruption of the OTA business model are driving share price performance instead of short-term earnings momentum.
Expedia Group, Inc. (NASDAQ:EXPE) also received a rating update from Mizuho on March 3. The firm cut the price target on the stock to $245 from $270 while maintaining a Neutral rating on the shares. It updated the company’s model following the release of its fiscal Q4 report, and cited peer group multiple contraction for the target cut.
Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that provides travel products and services to leisure and corporate travelers. The company’s operations are divided into the B2C, B2B, and Trivago segments.
1. Booking Holdings Inc. (NASDAQ:BKNG)
Booking Holdings Inc. (NASDAQ:BKNG) is one of the most undervalued hotel stocks to invest in now. Bernstein cut the price target on Booking Holdings Inc. (NASDAQ:BKNG) to $4,698 from $5,407 on March 11, reiterating a Market Perform rating on the shares and telling investors that, financially, fiscal Q4 marked a strong finish to 2025 for the company. All three OTAs delivered a top and bottom-line beat, guidance was ahead of consensus for 26, and on a full-year basis, all of them grew market share profitably in 2025. However, Bernstein added that short-term earnings momentum has taken a backseat, with concerns that the potential AI disruption of the OTA business model is driving share price performance.
In a separate development, Booking Holdings Inc. (NASDAQ:BKNG) was upgraded to Overweight from Equal Weight by Morgan Stanley on February 23. The firm adjusted the price target on the stock to $5,500 from $6,150, and told investors that it sees the company staying “a key driver of travel” even as the evolution of agentic tools continues. It stated that Booking Holdings Inc. (NASDAQ:BKNG) will still “own the customer”, capture “robust” traveler data, and use it to drive high-margin direct business.
Booking Holdings Inc. (NASDAQ:BKNG) provides online travel and related solutions, including accommodation reservations, including hotels, hostels, apartments, vacation rentals, and other properties. The company offers its services through the following brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable.
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