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 Q2. Today, we are looking at travel and vacation providers stocks, starting with Choice Hotels (NYSE:CHH).
Airlines, 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 airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.
The 18 travel and vacation providers stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.2% on average since the latest earnings results.
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 $426.4 million, down 2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with full-year EBITDA guidance slightly topping analysts’ expectations but a miss of analysts’ adjusted operating income estimates.
"Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy," said Patrick Pacious, President and Chief Executive Officer.
Unsurprisingly, the stock is down 4.1% since reporting and currently trades at $119.92.
Read our full report on Choice Hotels here, it’s free.
Best Q2: Pursuit (NYSE:PRSU)
With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE:PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.
Pursuit reported revenues of $116.7 million, down 69.2% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 17.7% since reporting. It currently trades at $35.34.
Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.27 billion, up 2.5% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14.6% since the results and currently trades at $43.39.
Read our full analysis of Hilton Grand Vacations’s results here.
Marriott (NASDAQ:MAR)
Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ:MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.
Marriott reported revenues of $6.74 billion, up 4.7% year on year. This number beat analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations.
The stock is up 1.1% since reporting and currently trades at $262.27.
Read our full, actionable report on Marriott 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 $1.02 billion, up 3.4% year on year. This result surpassed analysts’ expectations by 0.7%. Taking a step back, it was a mixed quarter as it also recorded EBITDA guidance for next quarter slightly topping analysts’ expectations but EPS in line with analysts’ estimates.
The stock is up 2.4% since reporting and currently trades at $59.26.
Read our full, actionable report on Travel + Leisure here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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