When It Comes to Hotels, Make Some Room Available in Your Portfolio
The leisure and hospitality industry generated an average of 79,000 jobs per month last year. That represents a sharp drop from 2021, when the industry created an average of 196,000 jobs per month.
What does 2023 hold for this sector? Since interest rates are expected to rise, and many economists are calling for a recession, we could see contraction in the hospitality industry.
That’s a logical viewpoint, but the charts of several stocks in this sector are telling a different story. Let’s go to the charts to see which hotel stocks are on the rise.
Hyatt Hospitality
Shares of Hyatt Hotels (H) reached their highest level on Wednesday since February of last year. Over the past three weeks, shares of the hospitality giant have gained 20%.
Hyatt is rising within a bull channel (parallel lines), and is within shouting distance of its all-time closing high of $106.58, set in February (point A).
Charts Via TradeStation
As much as I like this stock, I believe a pullback is likely prior to a move higher. Hyatt is near the top of its channel, and volume has faded in recent days (shaded yellow).
Because of this, I’d consider a partial entry at current prices. Then, investors can add to the position if the stock pulls back to the center of the channel (blue dotted line), which is currently near $100.
Checking Into Intercontinental Hotels
Intercontinental Hotels (IHG) is roaring higher after forming a bullish cup-and-handle pattern (curved lines). Shares of the hotelier have climbed 22% over the past three weeks, and a whopping 49% since mid-September.
Charts Via TradeStation
The bad news is that this stock is rallying into a thicket of resistance (black dotted lines), stretching from the area between $71 and $75. Volume has dropped off
