These 2 Hotel Stocks Are in Strong Downtrends. Is Now the Time to Sell?

: HOFV | Hall of Fame Resort & Entertainment Company News, Ratings, and Charts

HOFV – After a hot start to the year, shares of major hotel chains, including Hall of Fame Resort & Entertainment Company (HOFV) and Hyatt Hotels (H), have plunged on concerns of an economic slowdown. Given these stocks’ strong downtrend and weak fundamentals, they are best avoided now. Let’s discuss….

Rising recession fears due to the aggressive interest rate hikes have led to an intense market sell-off over the past couple of months. Many analysts expect the economy to witness a recession in the first half of 2023. This has shifted consumer spending from entertainment, leisure, and travel to basic necessities.

The travel industry has been badly affected by rising costs. Airlines have been unable to cope with the resurgence of demand due to staffing issues and high fuel costs. Flight cancellations have been rampant, leading to slow demand for luxury hotel chains.

The potential economic slump is expected to impact travel, leading to a downturn in hotel bookings. Investors’ declining interest in this sector is evident from the Kelly Hotel & Lodging Sector ETF’s 15% loss over the past three months.

Given the industry’s bleak prospects, we think it could be wise to avoid fundamentally weak hotel stocks Hall of Fame Resort & Entertainment Company (HOFV) and Hyatt Hotels Corporation (H), which are currently witnessing a downtrend.

Hall of Fame Resort & Entertainment Company (HOFV)

HOFV is a leading sport, entertainment, and media enterprise leveraging the popularity of professional football and players in partnership with the Pro Football Hall of Fame. It also offers live entertainment and events, including top performers, sporting events, and festival programming.

On July 6, 2022, HOFV announced that it secured a $33.4 million PACE loan from Stonehill Strategic Capital, LLC. This is expected to increase the company’s total debt and interest burden.

HOFV’s loss from operations widened 25.3% year-over-year to $9.96 million in the first quarter ended March 31, 2022. Its adjusted EBITDA loss widened by 36% from its year-ago value to $6.90 million, while its net loss narrowed 93.6% year-over-year to $8.11 million. Also, its net loss per share amounted to $0.08, narrowing 95.2% from the same quarter last year.

HOFV’s EPS is expected to remain negative in fiscal 2022 and 2023. Shares of HOFV have declined 67.5% over the past nine months and 76.6% over the past year. It closed the last trading session at $0.79.

HOFV’s POWR Ratings reflect its poor prospects. The company has an overall F rating, equating to a Strong Sell in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has an F grade for Growth and Quality and a D for Value and Stability. Within the Travel – Hotels/Resorts industry, it is ranked last out of 22 stocks. To see HOFV’s rating for Momentum and Sentiment, click here.

Hyatt Hotels Corporation (H)

H is a global hospitality company operating through five segments: Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME/SW Asia Management and Franchising, and Apple Leisure Group.

In the fiscal first quarter ended March 31, 2022, H’s direct and selling, general, and administrative expenses grew 112% from the prior-year quarter to $1.25 billion. The company’s net loss narrowed 76% year-over-year to $73 million, while its net loss per share came in at $0.67, representing a decrease of 77.6% year-over-year.

Analysts expect H’s EPS to remain negative for fiscal 2022. The stock has declined 17.3% over the past three months and 16.3% year-to-date to close its last trading session at $80.24.

H’s POWR Ratings are consistent with this bleak outlook. The stock has an overall D rating, which equates to Sell in our proprietary rating system. It also has a D grade for Stability, Sentiment, and Quality. Within the same industry, it is ranked #21.

In addition to the POWR Rating grades I’ve stated above, you can see H’s Growth, Value, and Momentum ratings here.

HOFV shares were trading at $0.79 per share on Friday afternoon, down $0.00 (+0.46%). Year-to-date, HOFV has declined -48.03%, versus a -16.12% rise in the benchmark S&P 500 index during the same period.

About the Author: Shweta Kumari

Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
HOFVGet RatingGet RatingGet Rating
HGet RatingGet RatingGet Rating

Most Popular Stories on

VERY Healthy Stock Rotation Underway

The S&P 500 (SPY) is putting the finishing touches on a strong 2023 campaign. This is the 4th straight year the large cap index has outperformed small and mid caps. Gladly there are signs this is going to change which is a very healthy sign for the longevity of this bull run. 43 year investment pro Steve Reitmeister explains why in his latest commentary that includes insights on this top 11 picks for today’s market. Read on below for more...

3 Big Reasons Why Microsoft May Not Be A Buy After All

Cheap puts and an expensive stock set up for a put play in Microsoft (MSFT).

This Stock is Feasting on Success During the Holidays

There are a lot of traditions that surround the holidays…tree decorating, giving gifts, holiday lights, festive menorahs. But one tradition stands out above the rest when it comes to getting together with family and friends and celebrating this time of year. And that is going to a holiday party and feasting on all of the holiday delights. If your holiday party finds you celebrating in a restaurant this year, you can probably thank Sysco Corp for delivering, and possibly having a hand in preparing, the food and drink you’re enjoying.

Top 3 Industrial Stocks Lighting Up the Market This Month

With legislative support, increased construction investments, and technological advancements, the industrial sector is witnessing rapid growth. Hence, it could be wise to invest in Siemens (SIEGY), Installed Building Products (IBP), and Konica Minolta (KNCAY), all of which are making significant market impacts this month. Keep reading…

Is It Time for Small Caps to Shine?

November was about as good of a month as a stock investor could ask for. However, still too much of the gains are accruing the same old collection of large cap stocks at the top of the S&P 500 (SPY). Gladly there are healthy signs that small caps are ready to take charge. Get Steve Reitmeister’s take on that subject including a preview of his top 11 picks for today’s market. Read on for more…

Read More Stories

More Hall of Fame Resort & Entertainment Company (HOFV) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All HOFV News