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Q1 Earnings Outperformers: Marriott Vacations (NYSE:VAC) And The Rest Of The Hotels, Resorts and Cruise Lines Stocks

VAC Cover Image
Q1 Earnings Outperformers: Marriott Vacations (NYSE:VAC) And The Rest Of The Hotels, Resorts and Cruise Lines Stocks

Let's dig into the relative performance of Marriott Vacations (NYSE:VAC) and its peers as we unravel the now-completed Q1 hotels, resorts and cruise lines earnings season.

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 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 1.3% on average since the previous earnings results.

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.

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Marriott Vacations reported revenues of $1.20 billion, up 2.2% year on year, topping analysts' expectations by 1.9%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but a miss of analysts' earnings estimates.

“It was great to see so many of our owners and guests spending time with their families at our resorts during the first quarter making memories that will last a lifetime,” said John Geller, president and chief executive officer.

Marriott Vacations Total Revenue
Marriott Vacations Total Revenue

The stock is down 5.1% since the results and currently trades at $92.49.

Read our full report on Marriott 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 an exceptional quarter for the company, with an impressive beat of analysts' revenue, EPS and operating margin estimates. That outperformance was driven by a beat in its net package RevPAR ($427 compared to estimates of $400) and a strong Mexican Peso, which appreciated relative to the U.S. Dollar.

Playa Hotels & Resorts Total Revenue
Playa Hotels & Resorts Total Revenue

Playa Hotels & Resorts scored the biggest analyst estimates beat among its peers. The stock is down 10.6% since the results and currently trades at $8.44.

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 mixed quarter for the company, with a beat analysts' EPS expectations. On the other hand, its revenue fell short of Wall Street's estimates as its domestic revenue per available room (RevPAR) decreased 5.9% year on year.

Choice Hotels had the weakest performance against analyst estimates in the group. The stock is down 5.5% since the results and currently trades at $115.42.

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

Lindblad Expeditions (NASDAQ:LIND)

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic.

Lindblad Expeditions reported revenues of $153.6 million, up 7.1% year on year, surpassing analysts' expectations by 2.6%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Lindblad Expeditions had the weakest full-year guidance update among its peers. The stock is up 14.1% since the results and currently trades at $8.34.

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

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 a 'beat and raise' quarter that investors cheer. Sabre blew past analysts' adjusted EBITDA and EPS expectations this quarter. In addition, the company raised its full year revenue and adjusted EBITDA guidance.

The stock is up 6.9% since the results and currently trades at $3.1.

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

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