Hospitality Stockwatch – March 2025

Authors

Arun Upneja, Ph.D. MBA, Dean, Boston University School of Hospitality Administration
Steve Kent, Ph.D., CFA, Assistant Professor, Molloy University-School of Business

In February, exogenous variables had the most dramatic impact on the 17 subsectors of the Boston University School of Hospitality Stockwatch. As we look further into 2025, changes in government policies, interest rates, and global economic conditions could play an even greater role in shaping the performance of the 120+ stocks we monitor – potentially more than in recent years. 

For example, in February 2025, the cruise sector declined by over 10% despite positive earnings news. Both Royal Caribbean and Carnival reported solid results with expectations that pricing power would persist even in the face of increasing supply. However, President Trump’s new Commerce Secretary expressed frustration that the cruise sector does not “pay taxes” (Bachman, 2025).  

In contrast, one of the strongest-performing sectors this past month was Gaming Triple Net Lease REIT, whose dividend yields may become more attractive as interest rates potentially move lower in response to a slowing economy.  A growing concern is whether consumer and business spending will decline due to the rapidly shifting global landscape, driven by caution and uncertainty. For hospitality stocks, we watch for any signals of a slowdown in business and leisure travel.

February 2025 Winners and Losers 

Two of the biggest movers in February were Cava (down 30%) and Sweetgreen (down 31%).  Both were strong performers in 2024, and even a hint of a slowdown in recently reported results sent shares tumbling. Penn Gaming, on the other hand, was among the best performers, rising 4.4% as its fundamental stabilized, bouncing back from a tough couple of years.

Click here to download Hospitality Stockwatch – Current as of March 3, 2025
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