Bank of America updated that leisure spending trends are somewhat mixed to begin the new year. A dig through the data showed some read-through for specific stocks.
Playa Hotels & Resorts N.V. ( NASDAQ: PLYA ) appears to be in a strong position with Caribbean trends bouncing back. BofA said Caribbean data was robust in January, sequentially improving against both 2019 and on a year-to-year basis. "PLYA weighted RevPAR saw its highest growth rate since May at +41% Y/Y with all markets up 20%+ Y/Y and Jamaica doubling at +109% Y/Y," updated analyst Shaun Kelly. He said visitation was also up nicely for PLYA in Janaury. While January numbers are running hot per the BofA data, the growth rates could slow against tougher comparisons in February and March.
The current trend for Vail Resorts ( NYSE: MTN ) was less favorable, per the January BofA data. MTN’s overall trend data was said to be flattish in January vs. December and still weak year-over-year. Meanwhile, Placer visitation and card spending data decelerated while web traffic improved. Visitation was driven by slower growth in Tahoe and Park City, likely due to better early season snow this season. Kelly noted that a few reports have suggested Vail may be tightening operating budgets/hours at resorts, although it is unclear if that is typical for the time of year.
Compare growth, profitability, and valuation metrics on Playa Hotels & Resorts N.V. and Vail Resorts.
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Leisure trends show Caribbean spending is hot and ski traffic is cold