BEDZ: 2nd Quarter 2025 Portfolio Review
Portfolio
Performance
In Q2 2025, BEDZ returned 9.18% (NAV) | 9.25% (market), participating in the broader market recovery during the quarter. The S&P 500 Index gained 10.94% over the same period, as investor sentiment improved following a pause in tariffs and a seasonal boost from summer travel activity.
Portfolio
The global hotel and lodging industry remains a cornerstone of the travel and tourism sector, spanning everything from luxury resorts to budget accommodations and boutique properties. Historically, this space thrives during periods of economic growth and rising travel activity. However, in the current environment of tightening financial conditions and softer consumer confidence, the pace of recovery has moderated.
We continue to see a positive long-term outlook for the sector, supported by evolving travel preferences and ongoing digital transformation within the industry. While growth may be slower in the near term, we believe the sector’s ability to adapt to changing consumer behavior and innovate through technology leaves it well-positioned for sustainable expansion.
Winners/Losers
Several holdings contributed positively to performance this quarter.
- Royal Caribbean Group (RCL): up 52.85%
- Carnival Corp (CCL).: up 43.98%
- Booking Holdings Inc. (BKNG): up 25.88%
On the other hand, some holdings faced headwinds amid heightened market volatility and sector-specific pressures:
- Trip.com Group Ltd. (TCOM): down -7.77%%
- Apple Hospitality REIT Inc. (APLE): down -7.73%
- Wyndham Hotels & Resorts Inc. (WH): down -9.81%
Important Portfolio Trades
During the quarter, BEDZ made several strategic adjustments to better align the portfolio with emerging trends and opportunities in the travel and lodging space.
BEDZ initiated positions in:
- Atour Lifestyle Holdings (ATAT): 3,700 Shares
BEDZ exited positions in:
- Gaming and Leisure Properties (GLPI)
- RLJ Lodging Trust (RLJ)
- Summit Hotel Properties Inc. (INN)
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| BKNG | BOOKING HOLDINGS INC | 6.05% |
| TH | TARGET HOSPITALITY CORP | 5.00% |
| HLT | HILTON WORLDWIDE HOLDINGS IN | 4.79% |
| BYD | BOYD GAMING CORP | 4.76% |
| RCL | ROYAL CARIBBEAN CRUISES LTD | 4.72% |
| VICI | VICI PROPERTIES INC | 4.70% |
| CCL | CARNIVAL CORP | 4.64% |
| ATAT | ATOUR LIFESTYLE HOLDINGS-ADR | 4.49% |
| EXPE | EXPEDIA GROUP INC | 4.37% |
| VIK | VIKING HOLDINGS LTD | 4.33% |
As of 06.30.2025. 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 hotel and lodging industry has begun to stabilize after its post-pandemic rebound, though it continues to navigate rising costs, staffing shortages, and a more cautious consumer. Many operators report that elevated operating expenses, particularly labor and utilities, are putting pressure on margins, with nearly two-thirds of hospitality companies still citing staffing challenges.
At the same time, traveler preferences are evolving, with demand shifting away from traditional destinations toward more personalized, experience-driven journeys. This trend is benefiting operators who can deliver unique, localized, and memorable experiences that foster customer loyalty.
Looking ahead, upcoming global sporting events are expected to serve as significant tailwinds for the industry. For example, the 2026 FIFA World Cup is projected to generate over $5 billion in U.S. revenue, while the 2028 Summer Olympic Games in Los Angeles could bring an estimated $11 billion economic impact.1 These events should help drive occupancy and rates in key markets and showcase the resilience of hospitality demand tied to large scale events.
On the innovation front, hospitality companies are increasingly adopting generative AI and automation, both in back-office operations and customer facing roles. These tools are improving efficiency, empowering staff to focus on higher value tasks, and enhancing guest personalization, which is becoming an important competitive differentiator in the market.
As travel demand continues to normalize and technology reshapes the competitive landscape, we believe investors will remain focused on scalable, differentiated opportunities within resilient markets. Although growth may proceed at a more measured pace, we see the foundation for steady, selective expansion in the quarters ahead.
Source:
1. The American Hotel & Loding Association. 2025 State of the Industry Report.
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.