Tourism stocks 2025, which ones stand out? Which ones to choose for the right category?

The tourism sector is making a recovery after facing challenges from the COVID-19 situation and changing traveler behaviors. In 2025, tourism stocks are attracting the attention of investors seeking long-term returns, supported by government policies promoting tourism, the resurgence of foreign tourist demand, and sustainable travel trends that are changing management approaches. This makes hotel stocks a group worth monitoring for serious investors.

Thai hotel stocks: where are the high potentials?

MINT – Diverse business portfolio

Minor International offers a wide range of hotel brands across luxury, mid-range, and economic segments, allowing it to meet the needs of various traveler groups. In 2024, the company reported a net profit of 7,750.22 million baht, an increase of 43.37% compared to the previous year’s profit of 5,407.06 million baht. The growth driver is the increase in revenue per available room (RevPAR) that hotels can generate from the return of mid-level tourists.

AWC – Pioneer in comprehensive real estate development

Asset World Corporation is attractive for developing real estate linked to hotel businesses. Its hotels are located in key locations across Thailand, supporting MICE and business travelers. It is expected that Q1 2025 will see strong growth aligned with the tourism sector’s recovery, driven by government stimulus policies and the evolving behavior of foreign tourists.

CENTEL – Leader in expansion investments

Central Plaza Hotel announced a 3-year investment plan worth 19,000 million baht to expand its branches. In 2025, it is expected to open 9 new hotels domestically and internationally, along with luxurious renovations such as rebranding Centara’s luxury lines in Hua Hin and Krabi. The company forecasts end-of-year revenue reaching 15,000 million baht, a 23% increase from last year.

ERW – Diversification through a broad network

The Erawan Group operates hotels at various levels, from luxury to mid-range, with a network spread across Thailand. Its strength lies in benefiting from the domestic tourism recovery. In late 2024, demand for conference, seminar, and MICE activities is expected to strengthen, supporting continuous profitability.

SHR – Small but quality-focused and well-funded

S Hotel & Resort positions itself prominently in key tourist destinations both domestically and internationally, targeting high-end customers seeking luxury experiences. Last Q4 showed signs of profit turnaround. The renovation project at SAii Laguna Phuket is expected to conclude earlier than planned, while the SO/Maldives hotel is entering peak travel season.

Foreign hotel stocks: American giants

MAR ( Marriott International ) – A vast global network

Marriott International from the US is the largest hotel management powerhouse worldwide, with numerous brands such as Marriott, Ritz-Carlton, and Sheraton, making it a household name globally. The company focuses heavily on technology and guest experience quality, which are key drivers of sustainable growth. Its P/E ratio is 32.52, with a stock price of $280 USD.

HLT ( Hilton Worldwide Holdings ) – Strong brand presence

Hilton operates as an international hotel group with an asset-light model through franchising and management. It has a global hotel network, high customer satisfaction scores, and operational flexibility. Its stock price is $258 USD, with a P/E of 42.09, indicating market confidence in its growth prospects.

WH ( Wyndham Hotels & Resorts ) – Middle-market expert

Wyndham targets the budget and mid-range hotel markets with high volume, offering a diverse brand portfolio across multiple regions. Growth comes from expanding new branches and cost management efficiency. Its stock price is $104 USD, with a P/E of 29.03, making it a reasonably valued investment.

How to select tourism stocks suitable for yourself

Study the company’s financial health

Review historical revenue and profit trends to monitor growth potential. Analyze gross profit margin and net profit margin to assess cost management. Understand debt-to-equity ratios and factors like (Occupancy Rate), (ADR), and (RevPAR), which indicate the hotel’s true health.

Evaluate management and strategy

Research the management team’s background and understand the company’s medium-term expansion plans. Companies with experienced leadership and clear strategies tend to manage marketing and cost control more effectively.

Analyze industry trends

Follow the fluctuations in the tourism industry both locally and globally. Consider factors affecting tourism, such as the global economy, political situations, and pandemic events. An important aspect of investment is understanding which companies are positioned to benefit most from the return of tourists.

Think about diversification

Companies with multiple hotel types and locations across various provinces tend to have lower risk. For example, ERW, which has diverse room offerings, is investing in hotels for business travelers and general tourists, spreading revenue sources and reducing dependence on a single branch.

Explore brands and reputation

Hotels with strong brands can set higher prices and generate more repeat business, such as Centara, known for international standards, or SHR, positioned as a luxury option.

How to invest in hotel stocks from Thailand: what are the options?

Option 1: The Stock Exchange of Thailand (SET)

Investors can open an account with a broker and buy Thai hotel stocks directly. The advantage is quick trading without currency exchange concerns and lower fees compared to foreign investments. The downside is limited stock options.

Option 2: Mutual funds

Buy units in funds focused on hotel or tourism stocks. The fund management team selects stocks for you. This option suits those without time to monitor the market but involves higher management fees.

Option 3: Contract trading services

This service allows speculation on price changes of hotel stocks, including foreign stocks. It offers high flexibility but also higher risk.

Summary

2025 is expected to be a year where tourism stocks and hotel stocks recover strongly, supported by the resurgence of foreign tourists, government promotion policies, and Thailand’s reopening for business and conference tourism both domestically and internationally. When choosing hotel stocks, investors should not only look at price increases but also study the above factors thoroughly and remain cautious of risks from the global economy, political volatility, and extreme events that could still occur.