Core Viewpoint - The Zacks Hotels and Motels industry is currently facing challenges due to rising costs, demand fluctuations, and competitive pressures, but companies are pursuing growth strategies to enhance their market position [1]. Industry Overview - The Zacks Hotels and Motels industry includes companies that own, lease, manage, develop, and franchise hotels, as well as those involved in vacation ownership and exchange [2]. Trends Impacting the Industry - **Margin Pressure**: Operating costs, particularly labor, are significantly impacting profitability, with staffing shortages leading to increased wages and reliance on third-party staffing [3]. - **Rising Expenses**: Hotels are experiencing higher costs for property maintenance, insurance, and energy, while demand normalization has weakened pricing power, further squeezing margins [4]. - **Economic Challenges**: The U.S. economy is presenting headwinds, with inflation, high interest rates, and reduced consumer confidence affecting discretionary spending and corporate travel budgets [5]. Future Outlook - **Gradual Improvement**: Projections indicate that U.S. hotel performance may stabilize and improve starting in 2026, with average daily rates expected to rise by about 1% and revenue per available room (RevPAR) anticipated to increase by 0.6% [6][7]. - **Digitalization**: Hotel owners are leveraging digital tools to enhance guest experiences and optimize pricing, which is expected to help capture additional market share [8]. Industry Performance - **Zacks Industry Rank**: The Zacks Hotels and Motels industry currently holds a rank of 179, placing it in the bottom 26% of 243 Zacks industries, indicating a negative earnings outlook [9][10]. - **Stock Market Performance**: Over the past year, the industry has underperformed the S&P 500, gaining only 1.9% compared to the S&P 500's 18.5% increase [12]. Valuation Metrics - The industry is trading at a trailing 12-month EV/EBITDA of 16.81X, compared to the S&P 500's 17.58X, indicating a relatively lower valuation [15]. Company Highlights - **Marriott International**: Benefiting from a 1.9% year-over-year increase in RevPAR and strong growth in international markets, with a focus on strategic growth through conversions and new openings [17]. The consensus estimate for Marriott's 2026 earnings indicates a 16.4% increase [18]. - **Hilton Worldwide**: Experiencing strong net unit growth and steady demand, with a forecast of low single-digit RevPAR growth in the EMEA region [21]. The consensus estimate for Hilton's 2026 EPS suggests a 12.5% growth [22]. - **Hyatt Hotels Corporation**: Capitalizing on strong leisure travel demand and RevPAR gains, with a focus on unit expansion and an asset-light model [25]. The consensus estimate for Hyatt's 2026 earnings indicates a significant 47.5% growth [26].

Group 1 - Accor SA - Sponsored ADR (ACCYY) is currently ranked 2 (Buy) in the Zacks Rank, indicating a positive outlook for the stock [3] - Year-to-date, ACCYY has increased by approximately 6.9%, while the average performance of Consumer Discretionary stocks has decreased by 2.8%, showcasing Accor's outperformance [4] - The Zacks Consensus Estimate for ACCYY's full-year earnings has risen by 1.7% over the past three months, reflecting improved analyst sentiment [4] Group 2 - Accor SA operates within the Hotels and Motels industry, which is currently ranked 140 in the Zacks Industry Rank, with an average gain of 10.9% year-to-date [6] - Despite Accor's positive performance, it is slightly underperforming its industry in terms of year-to-date returns [6] - In comparison, another stock in the Consumer Discretionary sector, Cumulus Media, has outperformed with an 8.5% increase year-to-date [5]

Choice Hotels (CHH) came out with quarterly earnings of $1.6 per share, beating the Zacks Consensus Estimate of $1.56 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.38%. A quarter ago, it was expected that this hotel franchiser would post earnings of $2.18 per share when it actually produced earnings of $2.1, delivering a surprise of -3.67%.Over the last four quarters, the comp ...

Core Viewpoint - Wyndham Hotels reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, but down from $1.04 per share a year ago, indicating an earnings surprise of +4.07% [1] Financial Performance - The company posted revenues of $334 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.16%, and down from $341 million year-over-year [2] - Over the last four quarters, Wyndham has surpassed consensus EPS estimates four times but has topped consensus revenue estimates only once [2] Stock Performance - Wyndham shares have increased approximately 6.3% since the beginning of the year, contrasting with the S&P 500's zero return [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.90 for the coming quarter and $4.89 for the current fiscal year, with revenues expected to be $325.9 million and $1.51 billion respectively [7] - The Zacks Rank for Wyndham is currently 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Hotels and Motels industry is currently in the bottom 45% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Marriott International (MAR) - Marriott International currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - The stock has shown a price increase of 6.2% over the past week, outperforming the Zacks Hotels and Motels industry, which remained flat [6] - Over the past month, MAR's shares have increased by 14.69%, compared to the industry's 3.61% [6] - In the last quarter, MAR shares rose by 18.35%, and over the past year, they gained 24.8%, while the S&P 500 increased by only 2.88% and 13.25%, respectively [7] Trading Volume - MAR's average 20-day trading volume is 1,648,856 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 6 earnings estimates for MAR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $11.47 to $11.64 [10] - For the next fiscal year, 3 estimates have also moved upwards, indicating positive sentiment [10] Conclusion - Considering the positive momentum indicators and earnings outlook, MAR is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

Hyatt Hotels (H) came out with quarterly earnings of $1.33 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +366.67%. A quarter ago, it was expected that this hotel operator would post earnings of $0.49 per share when it actually produced a loss of $0.3, delivering a surprise of -161.22%.Over the last four quarters, the compan ...

Core Insights - Hilton Worldwide Holdings Inc. reported strong financial performance for the fourth quarter of 2026, with an earnings per share (EPS) of $2.08, exceeding the estimated $2.02 [1][5] - The company's revenue for the fourth quarter reached $3.09 billion, surpassing the estimated $2.99 billion, marking a 3.34% increase over the Zacks Consensus Estimate and a significant rise from $2.78 billion in the same quarter last year [2][5] - Hilton's net income for the fourth quarter was $298 million, contributing to a total annual net income of $1.46 billion, with an adjusted EBITDA of $946 million for the quarter [3][5] Financial Metrics - Hilton's price-to-earnings (P/E) ratio is approximately 52.55, and its price-to-sales ratio is about 6.37 [4] - The enterprise value to sales ratio stands around 6.45, while the enterprise value to operating cash flow ratio is approximately 30.97 [4] - The earnings yield for Hilton is about 1.90%, providing insights into its valuation and financial efficiency [4] Business Model and Market Position - The company's asset-light business model, improved margins, and fee growth have contributed to its robust financial performance, even amidst macroeconomic pressures and challenges in the Chinese market [3] - Hilton has consistently surpassed revenue estimates three times in the past four quarters, underscoring its strong market position within the Zacks Hotels and Motels industry [2]

分组1 - Marriott International reported quarterly earnings of $2.58 per share, missing the Zacks Consensus Estimate of $2.64 per share, but showing an increase from $2.45 per share a year ago, resulting in an earnings surprise of -2.33% [1] - The company posted revenues of $6.69 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.13% and increasing from $6.43 billion year-over-year [2] - Over the last four quarters, Marriott has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has gained approximately 6.8% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the coming quarter is $2.56 on revenues of $6.54 billion, and for the current fiscal year, it is $11.54 on revenues of $27.9 billion [7] - The Zacks Industry Rank indicates that the Hotels and Motels sector is currently in the bottom 27% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Core Insights - Choice Hotels International, Inc. (CHH) is enhancing its position in the global hospitality market through the expansion of its midscale extended-stay brand, Everhome Suites, with recent openings in Texas, Kentucky, and New Jersey [2][10] Expansion of Everhome Suites - Everhome Suites has reached a national portfolio of 27 properties, establishing itself as a leader among newly launched midscale extended-stay brands, designed for long-term comfort with apartment-style suites [3][10] - The brand's growth is supported by a collaboration with Highside Companies, a Denver-based real estate firm, which has facilitated the rapid expansion [5] Strategic Priorities - Extended stay is a strategic priority for Choice Hotels, with a redesigned hotel prototype that reflects a data-driven and cost-efficient development strategy based on input from stakeholders [4][8] - The company is focusing on high-revenue segments and high-growth international markets, with plans to double international adjusted EBITDA by 2027 [7] Recent Openings and Market Position - New properties include locations in San Antonio, TX, Bowling Green, KY, and Somerset, NJ, strategically located near major employers and healthcare facilities to cater to business and extended-stay travelers [6] - The company is committed to meeting the rising demand for extended-stay accommodations, supported by a growing pipeline of developments [6] Stock Performance and Market Outlook - CHH shares have increased by 11.2% over the past three months, compared to a 16.4% growth in the Zacks Hotels and Motels industry, despite facing near-term challenges such as softness in U.S. RevPAR trends [9]

Group 1 - Accor SA - Sponsored ADR (ACCYY) is part of the Consumer Discretionary sector, which includes 257 individual stocks and holds a Zacks Sector Rank of 12 [2] - The Zacks Rank system indicates that Accor SA has a current Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] - The Zacks Consensus Estimate for ACCYY's full-year earnings has increased by 1.7% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] Group 2 - Year-to-date, Accor SA has returned approximately 0.1%, outperforming the average loss of 3.6% in the Consumer Discretionary group [4] - Accor SA belongs to the Hotels and Motels industry, which consists of 15 individual stocks and currently ranks 96 in the Zacks Industry Rank; this industry has gained about 2.8% so far this year, indicating that ACCYY is slightly underperforming its industry [6] - Investors should continue to monitor Accor SA and Cumulus Media, as both stocks have shown solid performance in the Consumer Discretionary sector [7]