Unpacking Q1 Earnings: Wyndham (NYSE:WH) In The Context Of Other Hotels, Resorts and Cruise Lines Stocks

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Wyndham (NYSE:WH) 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 1% on average since the previous 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 $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 and revenue estimates.

"We're thrilled to announce another strong quarter of progress in our executions, openings, franchisee retention and net room growth around the world," said Geoff Ballotti, president and chief executive officer.

The stock is down 2.2% since the results and currently trades at $70.35.

Read our full report on Wyndham 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 delivered 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.

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.

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.

Target Hospitality (NASDAQ:TH)

Essentially a builder of mini communities, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services.

Target Hospitality reported revenues of $106.7 million, down 27.8% year on year, surpassing analysts' expectations by 4.6%. It was an impressive quarter for the company, with an decent beat of analysts' revenue and earnings estimates.

Target Hospitality scored the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 2.7% since the results and currently trades at $11.41.

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

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