5 Hotel Stocks That Operate At Full Occupancy

Starwood Hotels & Resorts Worldwide HOT, parent company to multiple luxury hotel brands such as Le Meridien, aloft, Four Points, Westin, The Luxury Collection, W Hotels, Sheraton, ST Regis, and Element.

In a comparison of all publicly trading company's Starwood Hotels had the highest revenue per available room (RevPAR) in the second quarter of 2014 out of any publicly traded hotel and is currently in third place for the highest total RevPAR in the sector.

Starwood Hotels comes in second place for the highest average occupancy for its second quarters and places second for highest average daily rate (ADR) in all publicly trading companies. With a year to date return of nearly 20 percent, it is no wonder that Starwoods stock ticker is HOT.

Marriott International MAR maintaining one of the highest penetration in the hospitality sector, holding 3920 properties in more than 60 countries.

In a comparison among all hotels, Marriott is the lodging leader in the average occupancy year to date and displays the second highest RevPAR in the industry. Due to the success of Marriott's timeshare business segment, the company completed a spin-off in June 28, 2011 off as Marriott Vacations Worldwide VAC and since its IPO has returned nearly 230 percent to shareholders.

Hilton Worldwide Holdings HLT, a multi luxury brand hotel company with wide global penetration. Hilton's claim to fame is its record for displaying the highest hotel room revenue out of any hotel company in the world.

Despite Hilton's high multiples consisting of the highest forward EV/EBITDA multiple in the industry, around 14.4x and the second highest forward P/E multiple, at nearly 35x, the lodger displays solid cash flows and steady earnings growth. The company stock multiples expanded by nearly 20 percent contributed by short lived expenses and do to the launch of a projected 75 new Curio luxury brand, predicted to be complete by the end of 2014.

Opportunity is presented in Hiltons long-term outlook with its recent investment and judging on its ability to maintain steady growth. Hilton released guidance of 60 percent to 70 percent growth for full year 2014, in result to its room rate increases, potentially improving margins.

Ryman Hospitality Properties RHP, a REIT oriented lodging company specializing in urban and resort markets, with 48 percent of the company consisting of lodging (hotels), 48 percent hotel ownership REITS, and 4 percent consisting of Entertainment facilities services.

Ryman Hospitality has displayed a bullish recovery in its past two quarters from Q4 2013. The hospitality REIT reported a positive Q2 with adjusted EBITDA of $81.6 million, increases by 15.1 percent and net income of $28.0 million, surging by 70.9 Percent for the quarter. With a dividend yield of ~4.32 percent, Ryman Hospitality Properties has the highest dividend yield in the hospitality sector. During the Ryman's Q2 2014 earnings Tuesday, its board of directors approved the payment of a Special Dividend of US$2.93 per excisting share.

Hyatt Hotels H A luxury hotel corporation consisting of 563 properties in 48 different countries.

The company began as a single motel next to the Los Angeles international airport and since it has presented steady long lived growth historically, returning nearly 26 percent year-over-year and nearly 109 percent since its IPO on November 5, 2009.

Hyatt holds multiple records in the lodging sector, including highest ADR in the sector and the highest RevPAR out of any publicly traded hotel. Its 75.70 percent average occupancy makes it the highest out of any domestic lodging company. Hyatt Hotels falls in second highest for hotel room revenue.

Lodging sector formulas referenced above:
Average Daily Rate (ADR) = Hotel Revenue/Number of Rooms Sold
Occupancy Rate = Unites Rented Out Total Units
Revenue Per Available Room (RevPAR) = ADR/Occupancy Rate