Looking back on travel and vacation providers stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Choice Hotels (NYSE:CHH) and its peers.
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 19 travel and vacation providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 6.8% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.5% 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 $389.8 million, up 8.8% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance topping analysts’ expectations.
"Choice Hotels generated another year of strong results in 2024, exceeding the top end of our earnings guidance and delivering a 4.3% year-over-year net increase in our more revenue-intense domestic rooms portfolio, a testament to the success of our growth strategy," said Patrick Pacious, President and Chief Executive Officer.
The stock is down 10.7% since reporting and currently trades at $131.82.
Is now the time to buy Choice Hotels? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $45.8 million, down 84.3% year on year, outperforming analysts’ expectations by 8.8%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.7% since reporting. It currently trades at $35.04.
Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Hyatt Hotels (NYSE:H)
Founded in 1957, Hyatt Hotels (NYSE:H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.
Hyatt Hotels reported revenues of $1.60 billion, down 3.5% year on year, falling short of analysts’ expectations by 3.1%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Hyatt Hotels delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 25.5% since the results and currently trades at $120.81.
Read our full analysis of Hyatt Hotels’s results here.
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 $341 million, up 6.2% year on year. This print missed analysts’ expectations by 1.9%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is down 17.2% since reporting and currently trades at $90.28.
Read our full, actionable report on Wyndham here, it’s free.
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 $218.9 million, down 9.7% year on year. This result surpassed analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
The stock is flat since reporting and currently trades at $13.31.
Read our full, actionable report on Playa Hotels & Resorts here, it’s free.
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