Hotels, Resorts and Cruise Lines Stocks Q1 In Review: Soho House (NYSE:SHCO) Vs Peers
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at hotels, resorts and cruise lines stocks, starting with Soho House (NYSE:SHCO).
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 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.
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 estimates.
"Our first quarter results are testament to the strong appeal of Soho House globally, with Soho House membership growing 17% year-on-year and our waitlist surpassing the 100,000 mark for the first time," said Andrew Carnie, CEO of Soho House & Co.
The stock is up 2.1% since the results and currently trades at $5.23.
Read our full report on Soho House 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 estimates.
Playa Hotels & Resorts achieved the biggest analyst estimates beat among its peers. The stock is down 10.8% since the results and currently trades at $8.42.
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 underwhelming earnings guidance for the full year.
Choice Hotels had the weakest performance against analyst estimates in the group. The stock is down 7.9% since the results and currently trades at $112.45.
Read our full analysis of Choice Hotels's results here.
Sabre (NASDAQ:SABR)
Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Sabre reported revenues of $782.9 million, up 5.4% year on year, surpassing analysts' expectations by 3.9%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates.
The stock is up 3.4% since the results and currently trades at $3.
Read our full, actionable report on Sabre here, it's free.
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 $1.20 billion, up 2.2% year on year, surpassing analysts' expectations by 1.9%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates and underwhelming earnings guidance for the full year.
The stock is down 8% since the results and currently trades at $89.69.
Read our full, actionable report on Marriott Vacations here, it's free.
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