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Spotting Winners: Travel + Leisure (NYSE:TNL) And Hotels, Resorts and Cruise Lines Stocks In Q1


Radek Strnad /
2024/06/14 4:30 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how hotels, resorts and cruise lines stocks fared in Q1, starting with Travel + Leisure (NYSE:TNL).

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 growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance 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 3.4% on average since the previous earnings results.

Travel + Leisure (NYSE:TNL)

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE:TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Travel + Leisure reported revenues of $916 million, up 4.2% year on year, topping analysts' expectations by 1.3%. It was a good quarter for the company, with a decent beat of analysts' earnings estimates.

“We are off to a solid start for the year with a 15 percent increase in tours, 28 percent growth in new owner tours and volume per guest above $3,000,” said Michael D. Brown, president and chief executive officer of Travel + Leisure Co.

Travel + Leisure Total Revenue

The stock is down 3.5% since the results and currently trades at $44.46.

Is now the time to buy Travel + Leisure? Access our full analysis of the earnings results 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 and operating margin estimates.

Playa Hotels & Resorts Total Revenue

Playa Hotels & Resorts pulled off the biggest analyst estimates beat among its peers. The stock is down 11% since the results and currently trades at $8.4.

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' operating margin estimates and underwhelming earnings guidance for the full year.

Choice Hotels had the weakest performance against analyst estimates in the group. The stock is down 4.9% since the results and currently trades at $116.16.

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

Hilton Grand Vacations (NYSE:HGV)

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.

Hilton Grand Vacations reported revenues of $1.16 billion, up 23.8% year on year, surpassing analysts' expectations by 2.8%. It was a strong quarter for the company: Hilton Grand Vacations blew past analysts' operating margin expectations. We were also glad its number of members outperformed Wall Street's estimates.

The stock is down 5.4% since the results and currently trades at $41.06.

Read our full, actionable report on Hilton Grand Vacations here, it's free.

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 and operating margin estimates.

The stock is up 5.5% since the results and currently trades at $5.4.

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

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