3 hospitality stocks to check out right now

Follow us on Google News:
 3 hospitality stocks to check out right now
Image source: © Sebcz | Megapixl.com


  • The hospitality sector is struggling to grow amid inflationary pressures and the cost-of-living crisis.
  • According to a new survey, it saw the steepest decline in output growth last month.

The hospitality sector has been dealing with quite a few challenges for more than two years now. The hospitality sector struggled, especially during the Covid-19 pandemic. When the restrictions were removed, other challenges, like high energy bills, supply chain disruptions, shortage of labour, etc., gripped the industry. In the current scenario, where inflation is at record-high levels and people are cutting down on discretionary expenses, there isn't much hope for the hospitality businesses in the coming months.

In fact, the tourism and recreation industry in the UK saw the sharpest decline in output than any other sector last month. The latest data from the Lloyds Bank UK Recovery Tracker, which keeps a tab on the growth of different sectors, shows that the output growth of the hospitality sector stood at 36.3 in September. Any reading below 50 indicates contraction.

Image source: © Irimaxim | Megapixl.com

This is the fastest decline that sector has seen since February 2021, when lockdown restrictions gripped the country. Besides, the sector, which includes hotels, pubs, restaurants, bars, etc., saw a fall in demand for the fourth month in a row in September.

Kalkine Media® explores a few hospitality-related stocks that investors can look at in the current situation.

InterContinental Hotels Group Plc (LON: IHG)

The company owns several popular brands, including Holiday Inn. The FTSE 100 index's share price has depriciated by over 10% in the past 12 months. IHG shares were trading at GBX 4,543.00, 0.29% lower as of 9:43 am GMT+1 on Thursday.

Whitbread Plc (LON: WTB)

Another British hospitality business listed on the London Stock Exchange is Whitbread. This FTSE 100 index's shares shares were trading 0.28% higher at GBX 2,555.00 as of 9:49 am GMT+1 on Thursday. With an EPS of 0.21, the stock has given a negative return of -22.24% in the past one year and of -14.72% on a YTD basis.

Mitchells & Butlers Plc (LON: MAB)

The British pub operator currently has a negative EPS of -0.26. Its share value has depreciated by more than 55% in the past year. MAB's share value on a YTD basis also witnessed a dip of nearly 58%. MAB's shares were trading at GBX 107.70, up 0.19% as of 9:45 am GMT+1 on 20 October.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles