Q1 Earnings Highlights: Choice Hotels (NYSE:CHH) Vs The Rest Of The Hotels, Resorts and Cruise Lines Stocks

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Choice Hotels (NYSE:CHH) 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 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 1.8% on average since the previous earnings results.

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 weak quarter for the company, with a miss of analysts' revenue estimates as its domestic revenue per available room (RevPAR) decreased 5.9% year on year.

"Building on our record 2023 financial results, we drove first quarter performance to new levels, with adjusted EBITDA and EPS increasing by 17% and 14%, year-over-year, respectively," said Patrick Pacious, President and Chief Executive Officer.

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

Read our full report on Choice Hotels 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 estimates.

Playa Hotels & Resorts pulled off 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.

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 $1.16 billion, up 23.8% year on year, exceeding analysts' expectations by 2.8%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 3.7% since the results and currently trades at $41.79.

Read our full analysis of Hilton Grand Vacations's results here.

Carnival (NYSE:CCL)

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Carnival reported revenues of $5.41 billion, up 22% year on year, in line with analysts' expectations. It was a strong quarter for the company, with a solid beat of analysts' earnings estimates.

The stock is down 11% since the results and currently trades at $15.17.

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

Norwegian Cruise Line (NYSE:NCLH)

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.

Norwegian Cruise Line reported revenues of $2.19 billion, up 20.3% year on year, falling short of analysts' expectations by 2%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

The stock is down 15.5% since the results and currently trades at $15.98.

Read our full, actionable report on Norwegian Cruise Line here, it's free.

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