Hotel Chains Report Room Growth in 2025

What Happened?

A number of stocks jumped in the afternoon session after investors wagered geopolitical tension would be contained following the U.S. military's operation in Venezuela, with the Dow hitting a fresh record. 

Sentiment remained firmly "risk-on" for early 2026, with Wall Street prioritizing domestic economic strength over foreign turbulence. Analysts noted that while the event raises short-term supply questions, the market largely viewed the potential stabilization of Venezuela's vast oil reserves as a long-term economic positive.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Education Services company Universal Technical Institute jumped 11.1%. Is now the time to buy Universal Technical Institute? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Delta jumped 4.8%. Is now the time to buy Delta? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Choice Hotels jumped 3.6%. Is now the time to buy Choice Hotels? Access our full analysis report here, it’s free for active Edge members.
• Leisure Products company Ruger jumped 3.1%. Is now the time to buy Ruger? Access our full analysis report here, it’s free for active Edge members.
• Specialized Consumer Services company Mister Car Wash jumped 4.4%. Is now the time to buy Mister Car Wash? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Universal Technical Institute (UTI)

Universal Technical Institute’s shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for Universal Technical Institute and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 28 days ago when the stock dropped 3% on the news that new economic data intensified market agitation ahead of the Federal Reserve's policy decision later in the week. 

According to the Bureau of Economic Analysis, real consumer spending, which is adjusted for inflation, stalled in September, marking its weakest performance in four months. Compounding the issue, the University of Michigan's consumer sentiment index, while slightly improved, remained gloomy, with one economist noting that many households faced affordability issues forcing them to be more cautious. This pressure on consumers was reflected in the market, where the Consumer Discretionary sector was among the leading decliners. The broader economic picture showed other signs of caution, as new orders for U.S. factory goods also increased less than anticipated. These indicators collectively suggest a widening slowdown across both consumer and industrial sectors as the Federal Reserve prepared to announce its final policy actions for the year.

Universal Technical Institute is up 10.4% since the beginning of the year, but at $27.44 per share, it is still trading 23.6% below its 52-week high of $35.90 from June 2025. Investors who bought $1,000 worth of Universal Technical Institute’s shares 5 years ago would now be looking at an investment worth $4,348.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at travel and vacation providers stocks, starting with Wyndham .

Airlines, 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 airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.

The 17 travel and vacation providers stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 4.9% on average since the latest earnings results.

Wyndham

Established in 1981, Wyndham is a global hotel franchising company with over 9,000 hotels across nearly 95 countries on six continents.

Wyndham reported revenues of $382 million, down 3.5% year on year. This print fell short of analysts’ expectations by 4.8%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue estimates and full-year EBITDA guidance missing analysts’ expectations.

Wyndham delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 6% since reporting and currently trades at $75.55.

Read our full report on Wyndham here, it’s free for active Edge members.

Best Q3: Lindblad Expeditions

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions offers cruising experiences to remote destinations in partnership with National Geographic.

Lindblad Expeditions reported revenues of $240.2 million, up 16.6% year on year, outperforming analysts’ expectations by 4.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Lindblad Expeditions achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 18.2% since reporting. It currently trades at $14.43.

Weakest Q3: Hilton Grand Vacations

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations 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 $1.3 billion, flat year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.4% since the results and currently trades at $44.77.

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

Choice Hotels

With almost 100% of its properties under franchise agreements, Choice Hotels is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion.

Choice Hotels reported revenues of $447.3 million, up 4.5% year on year. This print beat analysts’ expectations by 7.6%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

The stock is up 4.1% since reporting and currently trades at $95.27.

Read our full, actionable report on Choice Hotels here, it’s free for active Edge members.

Norwegian Cruise Line

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

Norwegian Cruise Line reported revenues of $2.94 billion, up 4.7% year on year. This result missed analysts’ expectations by 2.7%. It was a slower quarter as it also produced a miss of analysts’ revenue estimates and EBITDA guidance for next quarter missing analysts’ expectations.

The stock is flat since reporting and currently trades at $22.31.

Read our full, actionable report on Norwegian Cruise Line here, it’s free for active Edge members.

Let’s dig into the relative performance of Choice Hotels and its peers as we unravel the now-completed Q3 travel and vacation providers earnings season.

Airlines, 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 airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.

The 17 travel and vacation providers stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.

Choice Hotels

With almost 100% of its properties under franchise agreements, Choice Hotels is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion.

Choice Hotels reported revenues of $447.3 million, up 4.5% year on year. This print exceeded analysts’ expectations by 7.6%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

"Choice Hotels International delivered another quarter of record profitability, underscoring the strength of our portfolio's continued shift toward higher-value brand segments and multiple growth avenues beyond U.S. RevPAR," said Patrick Pacious, President and Chief Executive Officer.

Interestingly, the stock is up 5.2% since reporting and currently trades at $96.29.

Best Q3: Lindblad Expeditions

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions offers cruising experiences to remote destinations in partnership with National Geographic.

Lindblad Expeditions reported revenues of $240.2 million, up 16.6% year on year, outperforming analysts’ expectations by 4.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Lindblad Expeditions pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 18.2% since reporting. It currently trades at $14.43.

Weakest Q3: Hilton Grand Vacations

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations 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 $1.3 billion, flat year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 2.4% since the results and currently trades at $45.24.

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

Marriott Vacations

Spun off from Marriott International in 1984, Marriott Vacations is a vacation company providing leisure experiences for travelers around the world.

Marriott Vacations reported revenues of $1.26 billion, down 3.2% year on year. This number missed analysts’ expectations by 4.5%. Overall, it was a softer quarter as it also logged a miss of analysts’ conducted tours estimates and a significant miss of analysts’ revenue estimates.

The stock is down 13.3% since reporting and currently trades at $58.32.

Read our full, actionable report on Marriott Vacations here, it’s free for active Edge members.

Hilton

Founded in 1919, Hilton Worldwide is a global hospitality company with a portfolio of hotel brands.

Hilton reported revenues of $3.12 billion, up 8.8% year on year. This result surpassed analysts’ expectations by 3.7%. Zooming out, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but EBITDA guidance for next quarter meeting analysts’ expectations.

The stock is up 9.4% since reporting and currently trades at $290.84.

Read our full, actionable report on Hilton here, it’s free for active Edge members.

What a brutal six months it’s been for Choice Hotels. The stock has dropped 23.9% and now trades at $96.58, rattling many shareholders. This might have investors contemplating their next move.

Is there a buying opportunity in Choice Hotels, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free for active Edge members.

Why Do We Think Choice Hotels Will Underperform?

Even with the cheaper entry price, we don't have much confidence in Choice Hotels. Here are three reasons why CHH doesn't excite us and a stock we'd rather own.

1. Declining RevPAR, Demand Takes a Hit

In addition to reported revenue, RevPAR (revenue per available room) is a useful data point for analyzing Travel and Vacation Providers companies. This metric accounts for daily rates and occupancy levels, painting a holistic picture of Choice Hotels’s demand characteristics.

Choice Hotels’s RevPAR came in at $57.23 in the latest quarter, and it averaged 2.9% year-on-year declines over the last two years. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests Choice Hotels might have to invest in new amenities such as restaurants and bars to attract customers - this isn’t ideal because expansions can complicate operations and be quite expensive (i.e., renovations and increased overhead).

2. Mediocre Free Cash Flow Margin Limits Reinvestment Potential

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

Choice Hotels has shown poor cash profitability over the last two years, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 8.3%, lousy for a consumer discretionary business.

3. New Investments Fail to Bear Fruit as ROIC Declines

A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, Choice Hotels’s ROIC has unfortunately decreased significantly. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between.

Final Judgment

We see the value of companies helping consumers, but in the case of Choice Hotels, we’re out. Following the recent decline, the stock trades at 13.7× forward P/E (or $96.58 per share). While this valuation is reasonable, we don’t see a big opportunity at the moment. There are superior stocks to buy right now. Let us point you toward a safe-and-steady industrials business benefiting from an upgrade cycle.