Hotel franchisor Choice Hotels (NYSE:CHH) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 2% year on year to $426.4 million. Its non-GAAP profit of $1.92 per share was 1% above analysts’ consensus estimates.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Choice Hotels (NYSE:CHH) and the best and worst performers in the travel and vacation providers industry.
Hotel franchisor Choice Hotels (NYSE:CHH) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $332.9 million. Its non-GAAP EPS of $1.34 per share was 2% below analysts’ consensus estimates.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
The performance of consumer discretionary businesses is closely linked to economic cycles. Over the past six months, it seems like demand trends are working against their favor as the industry
has tumbled by 11%. This drop was worse than the S&P 500’s 5.5% loss.
Hotel franchisor Choice Hotels (NYSE:CHH) missed Wall Street’s revenue expectations in Q1 CY2025, with sales flat year on year at $332.9 million. Its non-GAAP profit of $1.34 per share was 2% below analysts’ consensus estimates.
U.S. stocks traded mixed at midday Wednesday, as investors remained cautious ahead of the Federal Reserve’s upcoming policy decision, with Chair Jerome Powell set to speak at 2:30 p.m. ET.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Goldman Sachs analyst Lizzie Dove downgrades U.S. Lodging C-Corps and Timeshares due to weaker consumer demand, geopolitical uncertainty, and negative impacts from U.S. airlines. The forecast for 2025 RevPAR is lowered by 125 basis points, with a 45% probability of a U.S. recession. Preference shifts towards asset-light companies with global exposure, focusing on non-RevPAR and ancillary revenues amid uncertain macro conditions.
Gaming and lodging stocks are under pressure as recession risks mount, BofA Securities reports. With tariffs weighing on GDP, analysts warn of a potential 3%–8% EBITDA hit. Hotel and timeshare sectors remain the most exposed, while REITs and Gaming OpCos face heightened earnings risk. Stocks are now trading at their lowest valuations since the COVID-19 and GFC downturns.
Looking back on travel and vacation providers stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Choice Hotels (NYSE:CHH) and its peers.
