BEDZ: 1st Quarter 2025 Portfolio Review
Portfolio
Performance
In Q1 2025, BEDZ posted a return of -12.46% (NAV) and -12.49% (market), reflecting broader market weakness during the quarter. The S&P 500 Index also declined, falling 4.27%, as investor sentiment turned more cautious amid a shifting economic backdrop.
Portfolio
The global hotel and lodging industry continues to serve as a foundational pillar of the broader travel and tourism sector, spanning luxury resorts, budget accommodations, and niche boutique offerings. While the space is typically responsive to periods of economic expansion and increased travel activity, the current environment marked by tightening financial conditions and reduced consumer confidence has tempered some of that momentum. Nonetheless, we believe the long-term investment case remains positive supported by evolving travel patterns and ongoing digital transformation within the industry but with slower growth.
Winners/Losers
Despite the challenging environment, select holdings delivered positive results. VICI Properties Inc. (VICI), a real estate investment trust focused on casino and entertainment properties, advanced 13.18%, while Gaming and Leisure Properties Inc. (GLPI) gained 7.30%. On the downside, Target Hospitality Corp. (TH) fell 31.92% and Travelzoo (TZOO) declined by 31.68% reflecting heightened market volatility and sector-specific pressures.
Important Portfolio Trades
During the quarter, BEDZ executed a series of strategic adjustments to reposition the portfolio in response to shifting trends and valuation opportunities within the travel and leisure space.
BEDZ exited positions in:
-
- Atour Lifestyle Holdings (ATAT)
- Choice Hotels International Inc. (CHH)
- Host Hotels & Resorts Inc. (HST)
- Inspirato Inc. (ISPO)
- Intercontinental Hotels (IHG)
- Ryman Hospitality Properties (RHP)
BEDZ initiated positions in:
-
- Diamondrock Hospitality Co. (DRH): 21,500 shares
- Travel & Leisure Co. (TNL): 3,500 shares
BEDZ re-entered positions in:
-
- RLJ Lodging Trust (RLJ): 17,100 shares
- Summit Hotel Properties Inc. (INN): 28,000 shares
- TripAdvisor Inc. (TRIP): 8,200 shares
- Playa Hotels & Resorts (PLYA): 10,900 shares
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| TH | TARGET HOSPITALITY CORP | 5.96% |
| TCOM | TRIP.COM GROUP LTD-ADR | 5.86% |
| BKNG | BOOKING HOLDINGS INC | 5.58% |
| APLE | APPLE HOSPITALITY REIT INC | 5.16% |
| DRH | DIAMONDROCK HOSPITALITY CO | 4.79% |
| EXPE | EXPEDIA GROUP INC | 4.69% |
| TNL | TRAVEL + LEISURE CO | 4.67% |
| GLPI | GAMING AND LEISURE PROPERTIE | 4.66% |
| VIK | VIKING HOLDINGS LTD | 4.59% |
| INN | SUMMIT HOTEL PROPERTIES INC | 4.37% |
As of 3.31.2025. Cash is excluded. Holdings are subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/bedz. The holdings details are updated each market day.
Market Update
The first quarter of 2025 was marked by signs of softening demand in the travel and hospitality industry. A mix of inflationary pressures and widespread government layoffs contributed to a decline in business travel, though premium leisure travel showed greater resilience. Lower fuel prices provided a modest tailwind for margins, and overall travel activity remains above pre-pandemic levels. However, the path forward will be shaped by geopolitical dynamics and the ability of industry players to adapt through technology and operational efficiency. As travel demand stabilizes and digital innovation reshapes the sector, investors are likely to focus on scalable opportunities and resilient markets. We believe the near-term outlook points to a selective and slow but steady growth.
Cheers,
Dan Ahrens
AdvisorShares AdvisorShares Hotel ETF (BEDZ) Portfolio Manager
Past Commentary
Definitions: The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus or summary prospectus, a copy of which may be obtained by visiting www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
Investing involves risk including possible loss of principal. The hotels, restaurants & leisure industry is highly competitive and relies heavily on consumer spending for success. The prices of securities of companies in the industry may fluctuate widely due to general economic conditions, consumer spending and the availability of disposable income, changing consumer tastes and preferences and consumer demographics, in addition may be affected by the availability and expense of liability insurance. Legislative or regulatory changes and increased government supervision. Companies in the hotels, resorts & cruise lines sub-industry may be affected by unique supply and demand factors that do not apply to other sub-industries. Weak economic conditions in some parts of the world, changes in oil prices and currency values, political instability in some areas, and the uncertainty over how long any of these conditions could continue may have a negative impact on the lodging industry. As a result of such current economic conditions and uncertainty caused by the COVID-19 pandemic, the lodging industry may continue to experience weakened demand for occupancy in some markets.
Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.
Holdings and allocations are subject to risks and to change.
The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.