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Hotels, Resorts and Cruise Lines Stocks Q1 Highlights: Sabre (NASDAQ:SABR)


Anthony Lee /
2024/06/06 5:40 am EDT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sabre (NASDAQ:SABR) and the rest of the hotels, resorts and cruise lines stocks fared in Q1.

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. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the hotels, resorts and cruise lines stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.4% on average since the previous earnings results.

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, topping analysts' expectations by 3.9%. It was a mixed quarter for the company, with a decent beat of analysts' operating margin estimates but a miss of analysts' earnings estimates.

Sabre Total Revenue

The stock is up 6.6% since the results and currently trades at $3.09.

Read our full report on Sabre 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 a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Playa Hotels & Resorts Total Revenue

Playa Hotels & Resorts scored the biggest analyst estimates beat among its peers. The stock is down 10.1% since the results and currently trades at $8.49.

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 underwhelming earnings guidance for the full year.

Choice Hotels had the weakest performance against analyst estimates in the group. The stock is down 8.2% since the results and currently trades at $112.11.

Read our full analysis of Choice Hotels's results here.

Marriott (NASDAQ:MAR)

Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ:MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.

Marriott reported revenues of $5.98 billion, up 6.4% year on year, in line with analysts' expectations. It was a slower quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 1.4% since the results and currently trades at $232.71.

Read our full, actionable report on Marriott here, it's free.

Wyndham (NYSE:WH)

Established in 1981, Wyndham (NYSE:WH) is a global hotel franchising company with over 9,000 hotels across nearly 95 countries on six continents.

Wyndham reported revenues of $305 million, down 2.6% year on year, falling short of analysts' expectations by 1.1%. It was a weaker quarter for the company, with a miss of analysts' operating margin estimates.

The stock is down 4.4% since the results and currently trades at $68.82.

Read our full, actionable report on Wyndham here, it's free.

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