As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the hotels, resorts and cruise lines industry, including Marriott (NASDAQ:MAR) 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 a mixed Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, hotels, resorts and cruise lines stocks have held steady amidst all this with share prices up 2.6% on average since the latest earnings results.
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 $6.44 billion, up 6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with underwhelming earnings guidance for the full year.
Anthony Capuano, President and Chief Executive Officer, said, "Marriott reported strong second quarter results, with net rooms up 6 percent year over year and worldwide RevPAR1 growth of nearly 5 percent, as consumers continued to prioritize travel. International RevPAR increased more than 7 percent, with Asia Pacific excluding China leading the way, posting an impressive 13 percent RevPAR increase from the year-ago quarter.
Unsurprisingly, the stock is down 5.5% since reporting and currently trades at $225.57.
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Best Q2: 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 $235.5 million, down 5.1% year on year, outperforming analysts’ expectations by 3.1%. It was a solid quarter for the company with an impressive beat of analysts’ earnings estimates.
Playa Hotels & Resorts scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.4% since reporting. It currently trades at $7.54.
Weakest Q2: Marriott Vacations (NYSE:VAC) Spun off from Marriott International in 1984, Marriott Vacations (NYSE:VAC) is a vacation company providing leisure experiences for travelers around the world.
Marriott Vacations reported revenues of $1.14 billion, down 3.2% year on year, falling short of analysts’ expectations by 5.9%. It was a weak quarter for the company with underwhelming earnings guidance for the full year.
As expected, the stock is down 14.6% since the results and currently trades at $72.21.
Choice Hotels (NYSE: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 $435.2 million, up 1.8% year on year, in line with analysts’ expectations. More broadly, it was a slower quarter for the company with a miss of analysts’ earnings estimates.
The stock is up 2.5% since reporting and currently trades at $127.02.
Royal Caribbean (NYSE:RCL) Established in 1968, Royal Caribbean Cruises (NYSE:RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences.
Royal Caribbean reported revenues of $4.11 billion, up 16.7% year on year, surpassing analysts’ expectations by 1.6%. Revenue aside, it was a strong quarter for the company with optimistic earnings guidance for the next quarter and a decent beat of analysts’ earnings estimates.
The stock is flat since reporting and currently trades at $163.
This content was originally published on Stock Story
