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Travel + Leisure Goes Big—Is It Ready to Rally?Authored by Peter Frank. Article Published: 8/23/2026. 
Key Points
- Travel + Leisure reported strong second-quarter results, with revenue up 4.4% and adjusted EPS up 14%, prompting raised full-year guidance.
- The company expanded its reach through a combined $343 million acquisition of Yes& Vacations and Spinnaker Resorts, adding 23 resorts and over 100,000 owners.
- Analysts hold a consensus Buy rating with roughly 24% implied upside, though the shrinking Travel and Membership segment remains a key risk.
- Special Report: Tim Plaehn Shares a Fresh Take on Retirement Income
Travel + Leisure (NYSE: TNL) just entered some hard-to-access markets and reported strong second-quarter results. Analysts rate the stock a Buy and say it has room to run. However, not all of its business is surging ahead, and investors’ sharp reaction to disappointing first-quarter results shows that this leading timeshare company is not a sure thing.
For investors, the question is whether the acquisitions will pay off and whether vacation owners and consumers will continue signing up and spending. Acquisitions Expand Travel + Leisure’s ReachTravel + Leisure is the corporate descendant of Wyndham's former vacation-ownership business. Today, with more than 280 resort locations in the United States, Canada, Mexico, the Caribbean and Asia Pacific, the company is the world's largest vacation-ownership business, with 29,000 individual vacation-ownership units and 797,000 owner families, according to company filings. The company's operations include specialized brands such as Sports Illustrated Resorts, Eddie Bauer Adventure Club, Margaritaville Vacation Club and Accor Vacation Club, as well as its timeshare brands, Club Wyndham, WorldMark and RCI. That reach expanded in July when Travel + Leisure closed the acquisition of Yes& Vacations and signed a deal to buy Spinnaker Resorts. The combined $343 million bet adds 23 resorts and more than 100,000 owners in Maui and Hilton Head, two of the hardest markets in the country in which to build new timeshare inventory. Second-Quarter Results Show GrowthEven without these new acquisitions, Travel + Leisure has been reporting growth. The second quarter was particularly strong. Net revenue rose 4.4% year over year to $1.06 billion, topping the $1.04 billion analysts had projected. Adjusted diluted earnings per share came in at $1.88, up 14% from a year earlier and matching consensus. GAAP earnings reached $109 million, while diluted earnings per share were $1.72, up 6.2%. Adjusted EBITDA climbed 8% to $269 million, and the adjusted EBITDA margin expanded to 25.3% from 24.6%. Core Vacation-Ownership Business Leads the WayHowever, beneath those headline numbers, the company’s two major business segments told different stories. Vacation Ownership, the timeshare-sales engine that drives most of the profit, grew revenue 6% to $907 million and adjusted EBITDA 13% to $247 million. Growth was helped by a 2% increase in volume per guest and 6% growth in gross vacation-ownership interest (VOI) sales to $693 million. Travel and Membership, the RCI exchange and travel-club business, moved in the opposite direction. Revenue fell 5% to $157 million, while adjusted EBITDA declined 11% to $49 million as exchange transactions and membership declined. The Travel and Membership segment also weighed on the company’s first-quarter results. Revenue fell 8% to $165 million, and adjusted EBITDA dropped 13% to $59 million. Combined with flat full-year guidance, the disappointing results sent shares in the company down more than 10%. After climbing more than 80% in the previous 12 months, the figures may have hit harder than they otherwise would have. However, weakness in Travel and Membership remains a concern. Shares are roughly flat year to date and still up 20% over the last 12 months. Higher Guidance and Returns Add MomentumFor the second quarter, though, higher revenue and income, along with the acquisitions, changed the narrative and prompted management to raise its full-year guidance. The company now expects consolidated adjusted EBITDA of $1.065 billion to $1.085 billion, including the new acquisitions, compared with $1.05 billion to $1.065 billion on a standalone basis. Adjusted earnings per share are projected to grow roughly 20% for the year. The company is also rewarding shareholders. It returned $125 million during the quarter through $37 million in dividends and $88 million in buybacks, bringing first-half capital returns to $253 million and reducing the share count by 4%. That comes after the board raised the quarterly dividend 7% earlier this year to 60 cents per share, giving the stock a yield of about 3.3% and marking the fifth consecutive year of dividend increases. Analysts See Further UpsideDespite the ups and downs, Wall Street remains optimistic. Thirteen analysts cover the stock, with a consensus Buy rating. Of those, two have given the company a Strong Buy, 10 have assigned a Buy and one recommends Hold. The average 12-month price target is $87.82, implying roughly 24% upside from recent levels. The highest price target is $107, while the lowest is $71. Competition and Segment Weakness Pose RisksIn addition to questions about the long-term trajectory of Travel and Membership, the company faces outside pressures. Even as the largest player in its segment, Travel + Leisure still faces competitive risks. The company's annual report warns that the timeshare industry is highly competitive, pitting Travel + Leisure against large rivals such as Marriott Vacations Worldwide (NYSE: VAC), whose stock has doubled year to date, and Hilton Grand Vacations (NYSE: HGV). In addition, asset-light alternatives such as home-sharing platforms compete for some of the same customers without carrying the same capital burden. Valuation Leaves Room for Further GainsDespite these pressures, Travel + Leisure looks like a disciplined operator using its size to pursue additional growth while returning cash to shareholders. Its core Vacation Ownership business continues to expand, and its forward price-to-earnings ratio of less than 10 leaves room for further gains if the company maintains its execution. However, the stock has shown that the ride is not always smooth. Sentiment can change quickly after even a hint of disappointment, and the shrinking Travel and Membership segment raises additional questions. Still, for income investors who are comfortable with the timeshare model, the stock’s slight pullback and apparent momentum could be reasons to consider a purchase.
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