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]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

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]