Winners And Losers Of Q4: Choice Hotels (NYSE:CHH) Vs The Rest Of The Hotels, Resorts and Cruise Lines Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how the hotels, resorts and cruise lines stocks have fared in Q4, starting with Choice Hotels (NYSE:CHH).

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 13 hotels, resorts and cruise lines stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 1.6% while next quarter's revenue guidance was 4.8% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but hotels, resorts and cruise lines stocks held their ground better than others, with the share prices up 3.7% on average since the previous 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 $358.4 million, down 1% year on year, falling short of analyst expectations by 3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates. In addition, its full-year 2024 EPS guidance fell short.

"2023 was a year of accelerating growth, in which we exceeded the top end of the company's full-year adjusted EBITDA and adjusted EPS guidance led by our successful strategy of adding hotels that generate higher royalties per unit. We significantly expanded our rewards program, increased our geographic reach, unlocked new value through our platform capabilities, and created step function growth through the rapid completion of the Radisson Americas' integration," said Patrick Pacious, President and Chief Executive Officer.

The stock is up 6.9% since the results and currently trades at $125.51.

Read our full report on Choice Hotels here, it's free.

Best Q4: 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 $242.5 million, up 15% year on year, outperforming analyst expectations by 8.8%. It was an incredible quarter for the company, with an impressive beat of analysts' revenue and earnings estimates. Full year 2024 guidance for adjusted EBITDA was in line, showing that the company is staying on track.

Playa Hotels & Resorts pulled off the biggest analyst estimates beat among its peers. The stock is up 9.1% since the results and currently trades at $9.63.

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

Soho House (NYSE:SHCO)

Boasting fancy locations in hubs such as NYC and Miami, Soho House (NYSE:SHCO) is a global hospitality brand offering exclusive private member clubs, hotels, and restaurants.

Soho House reported revenues of $290.8 million, up 7.5% year on year, falling short of analyst expectations by 3.7%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Soho House had the weakest performance against analyst estimates in the group. The stock is up 6.1% since the results and currently trades at $6.09.

Read our full analysis of Soho House's results here.

Bluegreen Vacations (NYSE:BVH)

Managing resorts in top leisure and urban destinations, Bluegreen Vacations (NYSE:BVH) is a leading vacation ownership company that markets and sells vacation ownership interests.

Bluegreen Vacations reported revenues of $277.5 million, up 6.4% year on year, surpassing analyst expectations by 8.8%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates.

The stock is up 2.5% since the results and currently trades at $75.

Read our full, actionable report on Bluegreen Vacations 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 $687.1 million, up 8.9% year on year, falling short of analyst expectations by 0.6%. It was a weak quarter for the company, with revenue missing analysts' expectations. Guidance was even worse, with revenue and adjusted EBITDA outlook for next quarter and the full year all below Wall Street's estimates.

Sabre had the weakest full-year guidance update among its peers. The stock is down 47.5% since the results and currently trades at $2.31.

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

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