Hotels, Resorts and Cruise Lines Stocks Q1 Teardown: Hilton Grand Vacations (NYSE:HGV) Vs The Rest

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 Hilton Grand Vacations (NYSE:HGV).

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. 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. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the hotels, resorts and cruise lines stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.9% on average since the previous earnings results.

Hilton Grand Vacations (NYSE:HGV)

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.

Hilton Grand Vacations reported revenues of $1.16 billion, up 23.8% year on year, topping analysts' expectations by 2.8%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

“We started the year on a positive note, and we’re very encouraged by the momentum we built as we progressed through the quarter,” said Mark Wang, CEO of Hilton Grand Vacations.

The stock is down 6% since the results and currently trades at $40.78.

Read our full report on Hilton Grand Vacations 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 pulled off the biggest analyst estimates beat among its peers. The stock is down 9.9% since the results and currently trades at $8.51.

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 $112.51.

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

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, surpassing analysts' expectations by 1.1%. It was a very good quarter for the company, with optimistic earnings guidance for the next quarter and an impressive beat of analysts' earnings estimates.

Royal Caribbean scored the fastest revenue growth among its peers. The stock is up 13.9% since the results and currently trades at $155.8.

Read our full, actionable report on Royal Caribbean here, it's free.

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 mixed quarter for the company: Wyndham slightly topped analysts' adjusted EBITDA and EPS expectations. On the other hand, its revenue fell short of Wall Street's estimates.

The stock is down 1% since the results and currently trades at $71.25.

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

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