Hotels, Resorts and Cruise Lines Stocks Q2 In Review: Target Hospitality (NASDAQ:TH) Vs Peers

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Target Hospitality (NASDAQ:TH) 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 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 average share prices relatively unchanged since the latest earnings results.

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 $100.7 million, down 29.9% year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.

"The second quarter performance illustrates the benefits of our efficient operating model and network capabilities which allow us to provide premium solutions to our world-class customers, while simultaneously delivering strong financial results," stated Brad Archer, President and Chief Executive Officer.

Target Hospitality delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Interestingly, the stock is up 7.7% since reporting and currently trades at $9.61.

Is now the time to buy Target Hospitality? Access our full analysis of the earnings results here, it’s free.

Best Q2: 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, outperforming analysts’ expectations by 3.1%. It was a solid quarter for the company with an impressive beat of analysts’ earnings estimates.

Playa Hotels & Resorts delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.4% since reporting. It currently trades at $7.54.

Is now the time to buy Playa Hotels & Resorts? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $1.14 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.

As expected, the stock is down 14.6% since the results and currently trades at $72.21.

Read our full analysis of Marriott Vacations’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 $985 million, up 3.8% year on year, in line with analysts’ expectations. Taking a step back, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ conducted tours estimates.

The stock is down 14.1% since reporting and currently trades at $42.43.

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

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 $1.24 billion, up 22.6% year on year, falling short of analysts’ expectations by 7.7%. Revenue aside, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

Hilton Grand Vacations achieved the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 3.1% since reporting and currently trades at $37.41.

Read our full, actionable report on Hilton Grand Vacations here, it’s free.

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