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Choice Hotels International, Inc. (CHH) - free report >>
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Choice Hotels International, Inc. (CHH) - free report >>
Marriott Vacations Worldwide Corporation (VAC) - free report >>
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Marriott Vacations (VAC) Raises Q2 Contract Sales Guidance
Marriott Vacations Worldwide Corporation (VAC - Free Report) recently updated its second-quarter 2021 outlook. The company continues to witness robust recovery during second-quarter 2021. Following the news, its shares increased 1.4% on Jun 23. Notably, the stock has gained 21.2% in the past six months, compared with the industry’s growth of 9%.
Both occupancies and tours are witnessing sequential growth in the second quarter, while VPGs remain well above 2019 levels. The company anticipates contract sales in the range of $345 million to $355 million in the second quarter, up from the prior estimate of $320 million to $340 million. Contract sales are likely to increase 55% sequentially at the mid-point of aforementioned estimated guidance.
Occupancy Increasing Gradually
Following the reopening of resorts in May 2020, Marriott Vacations has been witnessing sequential improvement in occupancy rates, thereby highlighting people’s willingness to go on vacations. During first-quarter 2021, the company witnessed strong occupancy rates at short-haul fly-to locations. Notably, occupancy rates at Florida Beach resorts increased in the high-80% range, while occupancy rates in South Carolina resorts, and Colorado and Utah Mountain resorts rose 80% and 85%, respectively. Moreover, U.S. Virgin Island resorts reported occupancy rates of more than 85% during the quarter.
Strong revenue-building capacities and digital innovations are likely to boost the company's prospects. Marriott Vacations, which shares space with Choice Hotels (CHH - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Playa Hotels & Resorts N.V. (PLYA - Free Report) , carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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