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 Q2, starting with Wyndham (NYSE:WH).
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.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, hotels, resorts and cruise lines stocks have held steady amidst all this with share prices up 3.2% on average since the latest earnings results.
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 $367 million, up 1.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.
"The resilience and highly cash generative nature of our business model was once again on full display this quarter," said Geoff Ballotti, president and chief executive officer.
Interestingly, the stock is up 11.6% since reporting and currently trades at $78.70.
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Best Q2: Carnival (NYSE:NYSE:CCL) Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Carnival reported revenues of $5.78 billion, up 17.7% year on year, outperforming analysts’ expectations by 1.9%. It was a strong quarter for the company with an impressive beat of analysts’ earnings estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $16.28.
Weakest Q2: Marriott (NASDAQ:MAR) 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 and a miss of analysts’ operating margin estimates.
As expected, the stock is down 12.5% since the results and currently trades at $74.
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 $305.1 million, up 5.6% year on year, in line with analysts’ expectations. Revenue aside, it was a weak quarter for the company with a miss of analysts’ members estimates.
The stock is up 27.8% since reporting and currently trades at $6.20.
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, surpassing analysts’ expectations by 3.1%. Taking a step back, 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. The stock is up 3.1% since reporting and currently trades at $7.88.
This content was originally published on Stock Story
