Carnival and Hyatt Hotels are set for significant growth in the coming years.
With winter’s chill or the innate desire for adventure, two major stocks to consider holding for the next two decades are Carnival (CCL 2.14%) and Hyatt Hotels (H 2.36%). Why focus on these hospitality brands? The reasoning is straightforward: travel experiences are cyclical but enduring.
While personal travel trends fluctuate with various economic factors, the expanding global middle class is likely to ensure the success of Carnival and Hyatt. As these companies consistently meet customer expectations, their prospects over the next 20 years remain bright.
Today’s Change
(-2.14%) $-0.69
Current Price
$31.75
Key Data Points
Market Cap
$44B
Day’s Range
$31.37 – $32.39
52wk Range
$15.07 – $34.03
Volume
615K
Avg Vol
21M
Gross Margin
29.58%
Dividend Yield
0.47%
The global travel market is projected to exceed $9.5 trillion by 2035. This opens a substantial opportunity for brands that are ready to innovate in customer service and explore emerging markets. Carnival and Hyatt meet these criteria.
Carnival is Set to Thrive
Carnival stands as the largest cruise line operator globally, boasting a fleet of over 90 ships across 800 ports. Although the company hasn’t returned to pre-pandemic levels, it benefits from promising trends. Cruising remains an emerging sector in global travel. Carnival’s scope and size allow it to reach untapped markets globally, along with a pricing advantage over smaller competitors.
Carnival carries considerable debt, which deserves consideration. However, it is enhancing its cash flow and actively reducing its debt. Over the next 20 years, as cruise demand rises, Carnival’s balance sheet should strengthen accordingly. The stock remains undervalued, with a low forward price-to-earnings (P/E) ratio of 13, despite trading near its 52-week high. Additionally, the company reinstated its dividend in December 2025, a positive sign for investors.
Hyatt’s Smart Transition
Hyatt operates in 80 countries and has shifted towards a more asset-light, fee-based business model. This entails favoring management and franchise agreements over owning hotel properties, reducing capital requirements and increasing scalability compared to competitors who possess their own real estate.
Today’s Change
(-2.36%) $-3.99
Current Price
$165.08
Key Data Points
Market Cap
$16B
Day’s Range
$164.98 – $171.78
52wk Range
$102.42 – $180.53
Volume
38K
Avg Vol
815K
Gross Margin
13.93%
Dividend Yield
0.36%
Hyatt’s expansion of its World of Hyatt loyalty program, which has over 60 million members, fosters customer retention and encourages repeat bookings.
Hyatt’s recent quarterly earnings report indicated a promising outlook for 2026, anticipating a 22% to 33% rise in adjusted free cash flow. Gross fee growth is projected to be between 8% and 11%, with a net room increase of 6% to 7%. Incredible growth is expected in net income, projecting a leap from a loss of $52 million to between $235 million and $320 million. Overall, Hyatt’s asset-light strategy should yield considerable benefits by 2026.
Embracing the Future with Carnival and Hyatt
As life expectancies rise and global wealth increases, travel brands like Carnival and Hyatt have a strong opportunity for growth, both domestically and internationally. These companies are focused on enhancing customer experiences and strengthening long-term financial outcomes. In 20 years, investors could enjoy leisure time by the pool, thanks to these two robust stocks.
