A Look Back at Hotels, Resorts and Cruise Lines Stocks' Q1 Earnings: Royal Caribbean (NYSE:RCL) Vs The Rest Of The Pack

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the hotels, resorts and cruise lines stocks, including Royal Caribbean (NYSE:RCL) 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 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 0.1% on average since the previous earnings results.

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 $3.73 billion, up 29.2% year on year, topping analysts' expectations by 1.1%. It was an impressive quarter for the company, with optimistic earnings guidance for the next quarter.

"Wow, what a great start to the year! Demand for our leading brands and the incredible experiences they deliver continues to be very robust, resulting in outperformance in the first quarter, a further increase of full year earnings guidance, and 60% expected earnings growth year over year," said Jason Liberty, president and CEO, Royal Caribbean Group.

Royal Caribbean scored the fastest revenue growth of the whole group. The stock is up 10.4% since the results and currently trades at $151.

Is now the time to buy Royal Caribbean? 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 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 12.1% since the results and currently trades at $8.3.

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. Looking ahead, it lowered its full-year adjusted net income guidance, though its EPS outlook was unchanged because the decline in net income is projected to be offset by share repurchases.

Choice Hotels had the weakest performance against analyst estimates in the group. The stock is down 3.6% since the results and currently trades at $117.71.

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

Norwegian Cruise Line (NYSE:NCLH)

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.

Norwegian Cruise Line reported revenues of $2.19 billion, up 20.3% year on year, falling short of analysts' expectations by 2%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

The stock is down 10.6% since the results and currently trades at $16.9.

Read our full, actionable report on Norwegian Cruise Line here, it's free.

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, surpassing analysts' expectations by 1.3%. It was a good quarter for the company, with a decent beat of analysts' earnings estimates.

The stock is down 2.2% since the results and currently trades at $45.06.

Read our full, actionable report on Travel + Leisure here, it's free.

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