Looking back on hotels, resorts and cruise lines stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Hilton Grand Vacations (NYSE:HGV) 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 Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and hotels, resorts and cruise lines stocks have had a rough stretch. On average, share prices are down 5.2% since the latest earnings results.

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 $1.24 billion, up 22.6% year on year. This print fell short of analysts’ expectations by 7.7%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

“Our results were below expectations this quarter, as we experienced some sales challenges along with a pullback in consumer spending behavior late in the quarter,” said Mark Wang, CEO of Hilton Grand Vacations.

Hilton Grand Vacations achieved the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 4.1% since reporting and currently trades at $7.33.

Read our full report on Hilton Grand Vacations here, it’s free.

Best Q2: 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 $235.5 million, down 5.1% year on year, outperforming analysts’ expectations by 3.1%. It was a strong quarter for the company with an impressive beat of analysts’ earnings estimates.

Playa Hotels & Resorts achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.1% since reporting. It currently trades at $7.33.

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

Weakest Q2: 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.

Marriott Vacations reported revenues of $1.14 billion, down 3.2% year on year, falling short of analysts’ expectations by 5.9%. It was a weak quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.

As expected, the stock is down 16.4% since the results and currently trades at $70.69.

Read our full analysis of Marriott 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 $6.44 billion, up 6% year on year, in line with analysts’ expectations. Revenue aside, it was a slower quarter for the company with underwhelming earnings guidance for the full year.

The stock is down 9.3% since reporting and currently trades at $216.49.

Read our full, actionable report on Marriott here, it’s free.

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 $5.78 billion, up 17.7% year on year, surpassing analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates and a narrow beat of analysts’ passenger cruise days estimates.

The stock is down 9.6% since reporting and currently trades at $14.81.

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

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