As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the hotels, resorts and cruise lines industry, including Lindblad Expeditions (NASDAQ:LIND) and its peers.
Hotels, resorts, and cruise line companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted from buying "things" (wasteful) to buying "experiences" (memorable). In addition, the internet has introduced new ways of approaching leisure and lodging such as booking homes and longer-term accommodations. Traditional hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.
The 15 hotels, resorts and cruise lines stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 1.4%. while next quarter's revenue guidance was 0.8% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the hotels, resorts and cruise lines stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.8% on average since the previous earnings results.
Lindblad Expeditions (NASDAQ:LIND)
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Lindblad Expeditions reported revenues of $153.6 million, up 7.1% year on year, topping analysts' expectations by 2.6%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates.
Sven Lindblad, Chief Executive Officer, said "Lindblad's first quarter results set the stage for another year of strong growth and record results in 2024. The booking momentum we experienced throughout 2023 has continued into this year as more and more guests want to experience the thrill of exploration in the remarkable destinations we visit..."
Lindblad Expeditions delivered the weakest full-year guidance update of the whole group. The stock is up 14.1% since the results and currently trades at $8.34.
Read our full report on Lindblad Expeditions here, it's free.
Best Q1: Playa Hotels & Resorts (NASDAQ:PLYA)
Sporting a roster of beachfront properties, Playa Hotels & Resorts (NASDAQ:PLYA) is an owner, operator, and developer of all-inclusive resorts in prime vacation destinations.
Playa Hotels & Resorts reported revenues of $300.6 million, up 9.8% year on year, outperforming analysts' expectations by 6.3%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates.
Playa Hotels & Resorts scored the biggest analyst estimates beat among its peers. The stock is down 10.6% since the results and currently trades at $8.44.
Is now the time to buy Playa Hotels & Resorts? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Choice Hotels (NYSE:CHH)
With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE:CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion.
Choice Hotels reported revenues of $331.9 million, down 0.3% year on year, falling short of analysts' expectations by 3.2%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
Choice Hotels had the weakest performance against analyst estimates in the group. The stock is down 5.5% since the results and currently trades at $115.42.
Read our full analysis of Choice Hotels's results here.
Soho House (NYSE:SHCO)
Boasting fancy locations in hubs such as NYC and Miami, Soho House (NYSE:SHCO) is a global hospitality brand offering exclusive private member clubs, hotels, and restaurants.
Soho House reported revenues of $263.1 million, up 3.1% year on year, in line with analysts' expectations. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.
The stock is up 4.1% since the results and currently trades at $5.33.
Read our full, actionable report on Soho House here, it's free.
Sabre (NASDAQ:SABR)
Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Sabre reported revenues of $782.9 million, up 5.4% year on year, surpassing analysts' expectations by 3.9%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates and revenue guidance for next quarter missing analysts' expectations.
The stock is up 6.9% since the results and currently trades at $3.1.
Read our full, actionable report on Sabre here, it's free.
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