3 hospitality stocks to check out right now

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 3 hospitality stocks to check out right now
Image source: © Sebcz | Megapixl.com

Highlights:

  • 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.

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