Hotel companies have mostly reached pre-pandemic levels, but the road hasn’t been easy, and growth is expected to remain lackluster. Headwinds include high competition, industrywide declining occupancy rates, and rising operating costs. Low barriers of entry in the industry, along with the COVID-19 pandemic, led to supply & demand dynamics that have further affected the industry. While struggling with operating and financial metrics, there are several moving pieces. For some of our covered companies, lessons from recent years have led them to redefine their strategies; some of these changes are still undergoing, as we explain throughout the report. Amid these industry conditions and trends, we are more constructive on FINN (Outperform, P$5.50 PT), given its hands-on approach —focusing more on profiting from existing hotels vs top-line growth—, its meaningful footprint in the Northern industrial sector —where we see medium-to-long-term opportunities—, a growing exposure to high-end hotels, and the potential to gain geographical diversification. On the other hand, we are less constructive on FIHO (Market Perform, P$10.00 PT) and HOTEL (Market Perform, P$4.00 PT). We see FIHO as one of the most diversified hotel companies within our coverage, yet with limited growth potential that leads to a more cautious view on upside potential. Meanwhile, HOTEL has key differentiators —higher leisure exposure and improving hotel metrics—, yet we don’t necessarily expect a rerating in the short-to-medium term. Finally, we are more cautious on HCITY (Underperform, P$4.50 PT), amid its recent strategy review for the short-to-medium term, and as operating metrics continue to underperform. All in, while our covered hotel companies are trading at deep discounts vs historical levels, we are selective on where we see meaningful opportunities.