The Malta Independent 19 April 2021, Monday

Will hotel and resorts stocks rise again in 2021?

Wednesday, 24 March 2021, 08:00 Last update: about 26 days ago

Last year’s coronavirus outbreak imposed restrictions on travel, shutting down the entire tourism sector in the entire world. It crippled pretty much all brick-and-mortar facilities stocks, from casinos to hotels and resorts. Nevertheless, the latest happenings suggest that we might be in for a complete turnaround as there are numerous reasons for optimism in regards to the sudden rise of the hotel & resorts stocks in 2021. 

The growth of the online gambling industry

The online gambling industry flourished parallel to the shut-down of the land-based casinos. A look at the betting-related websites such as AmericaGambles reveals the massive growth of the online niche. The number of online gaming operators keeps growing almost on a daily basis as Americans are constantly looking for new sources of entertainment.

Why brick-and-mortar casinos should be in for a big year?

So, we can agree that Americans have by no means lost interest in gambling. As a matter of fact, it is completely the opposite. We can thus only imagine the boom that is about to happen in all these big and luxurious facilities all over the country once the restrictions are gone. And we might just be en route to such a scenario.

The approval of the Covid-19 vaccine is a massive game-changer in this department. Once enough people are vaccinated and we get closer to herd immunity, normal life resumes. People start traveling again, the economies begin to recover, and casinos welcome their guests in luxurious hotels and resorts.

Moving forward, another significant reason for investors to look at the hotels and resorts this year lies in the change in the White House. We all know about Donald Trump’s trade war with China. The new President will likely take a much more diplomatic approach to the planet’s second-largest economy. The popular American casinos that own hotels/resorts/subsidiaries in Singapore, Macau, and China will certainly benefit from the less rocky trade relations between two big powerhouses.

Three stocks to invest in

Since we have agreed on the certain rise in hotel and resorts (especially the gambling-related ones) stocks in 2021, it is time to move straight to the point. Which casino & resorts stocks to buy this year?

1 – MGM Resorts

When you think of a whole complex of the integrated casino, hotel, and resort facilities, the MGM Resorts have to be among the first options to cross your mind. It has an enormous portfolio of super-attractive entertainment activities, it is present in numerous American states as well as abroad, and its stocks should rise rapidly this year. Its sports-betting platform, BetMGM, has as much as 17% of the market share in the entire industry in the United States. Considering everything mentioned in the introduction, we should by no means doubt the stock price growth for this American big-hitter.

2– Las Vegas Sands

Despite the death of the 87-year-old Las Vegas Sands CEO (and founder), one of the biggest casino resorts in the world has prospects for significant growth in 2021. The Las Vegas Sands stocks have already risen by around 4% in the last three months, following greater gaming revenues from Macao and the approval of the coronavirus vaccine. The rise of Macao’s gaming revenue will certainly result in the company’s significant investments in Marina Bay Sands Singapore and Macao.

3 – Wynn Resorts

Wynn Resorts have always relied heavily on their brick-and-mortar facilities which is why they were particularly crippled by the coronavirus outbreak. They have only recently properly entered the online market by releasing the WynnBet app. However, since they have endured the toughest day, there is massive room for probably the most significant growth in stock prices in 2021. Since Wynn Resorts had dreadful numbers last year, they will be up against easy comparisons once the vaccines start taking effect. The company's big exposure to the ever-growing Macao market can only boost up the growth.

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