BEDZ: 4th Quarter 2025 Portfolio Review
Portfolio
In Q4 2025, BEDZ achieved a return of 1.28% (NAV) / 1.28% (market), underperforming the S&P 500 Index, which advanced 2.66% during the same timeframe, amid a combination of positives and hurdles in the worldwide hotel and lodging market.
Portfolio
The worldwide hotel and lodging sector continues to serve as a vital component of the larger travel and tourism landscape, including a range from high-end resorts and multinational chains to unique boutique hotels and economical options. In the past, this industry has typically excelled amid economic booms and robust demand for travel.
In the current environment, however, tighter monetary policy and softer consumer sentiment have moderated the pace of growth. Despite these near-term headwinds, long-term fundamentals remain constructive. Evolving traveler preferences, such as demand for experiential stays, flexible accommodations, and digitally enabled services, along with continued technological innovation across operations and distribution, are reshaping the industry.
While near-term growth may be more measured, the sector’s ability to adapt to changing guest behaviors and integrate new technologies positions it for durable, steady growth over the long term.
Winners/Losers
Several holdings contributed positively to fund performance during the quarter, supported by resilient travel demand and company-specific execution.
- Expedia Group Inc (EXPE): +32.76%
- Travel+Leisure Co (TNL): +19.49%
- Marriott International Inc (MAR): +19.40%
A handful of holdings detracted from performance:
- Travelzoo (TZOO): -27.57%
- Royal Caribbean Group (RCL): -13.50%
- Norwegian Cruise Line Holdings Ltd (NCLH): -9.38%
Important Portfolio Trades
BEDZ made selective portfolio changes, during the quarter, aimed at maintaining alignment with evolving dynamics and long-term opportunities in the travel and lodging space.
BEDZ reinitiated positions in:
- Atour Lifestyle Holdings ADR (ATAT): 2,865 shares
- Gaming and Leisure Properties (GLPI): 3,398 shares
- H World Group Ltd ADR (HTHT): 3,073 shares
BEDZ exited positions in:
- Hyatt Hotels Corp (H)
- SOHO House & Co Inc (SHCO)
- Wyndham Hotels & Resorts Inc (WH)
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| EXPE | EXPEDIA GROUP INC | 5.97% |
| MAR | MARRIOTT INTERNATIONAL -CL A | 5.21% |
| HST | HOST HOTELS & RESORTS INC | 4.95% |
| TCOM | TRIP.COM GROUP LTD-ADR | 4.95% |
| HLT | HILTON WORLDWIDE HOLDINGS IN | 4.87% |
| VIK | VIKING HOLDINGS LTD | 4.74% |
| CCL | CARNIVAL CORP | 4.71% |
| NCLH | NORWEGIAN CRUISE LINE HOLDIN | 4.43% |
| GLPI | GAMING AND LEISURE PROPERTIE | 4.42% |
| HTHT | H WORLD GROUP LTD-ADR | 4.34% |
As of 12.31.2025. 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
During Q4 2025, the worldwide hotel and lodging sector displayed varied results. Demand held firm in key areas like leisure and corporate travel, but the industry encountered obstacles from declining group bookings and more conservative spending by consumers due to wider economic strains.
The sector kept making substantial contributions to international economic progress. India’s hospitality scene experienced robust growth, fueled by cultural events and vibrant participation in the MICE (Meetings, Incentives, Conferences, and Events) category.1 In the U.S., lodging patterns adapted to changing guest priorities, emphasizing affordability, ease, and memorable experiences.
Ongoing difficulties endured. Escalating insurance expenses and rivalry from vacation rentals strained profitability. Offsetting these challenges were encouraging demand indicators, as TSA passenger volumes showed modest growth, reflecting stable travel activity, while wage gains across the travel industry exceeded inflation, reinforcing consumer confidence in discretionary travel spending.2
Labor shortages continued as a critical concern. Although job numbers rose in hospitality and related positions, attrition remained elevated, exerting ongoing strain on operational productivity and service quality for guests.3
Looking ahead, expectations into 2026 remain demanding but cautiously optimistic, supported by ongoing efficiency initiatives and a gradual economic recovery. Opportunities continue to emerge through integrated business strategies, technology investments, and consolidation efforts aimed at enhancing scale and operational effectiveness.
While risks remain, including policy uncertainty, rising operating costs, and potential softness in room occupancy, near-term growth may progress at a more measured pace. Even so, the sector’s underlying fundamentals provide a foundation for steady, targeted growth over the longer term.
Sources:
1. Lighthouse. Industry Technology. The 7 travel and hospitality trends that defined 2025. December 11, 2025.
2. U.S. Travel Association. Forecast. Travel Forecast. October 1, 2025.
3. Oracle NetSuite. Schwarz, Lisa. 13 Common Challenges in the Hospitality Industry in 2025. October 2025.
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.