Wednesday will be a big day for hotel stocks as 2016 fourth quarter earnings results filter in from Hilton Worldwide (HLT - Get Report) , Marriott Int'l (MAR - Get Report) and Choice Hotels Int'l (CHH - Get Report) .
Analysts surveyed by Factset are expecting Marriott, boosted by its September $13 billion acquisition of Starwood Hotels & Resorts, to crush results.
Marriott is anticipated to post fourth quarter earnings of 85 cents a share on $5.04 billion in revenue, higher than last year's fourth quarter earnings of 77 cents a share on $3.71 billion in revenue.
Hilton is expected to report flat fourth quarter earnings of 66 cents a share and revenue of $2.91 billion, compared to last year's earnings of 66 cents a share on revenue of $2.86 billion. The company spun off subsidiaries Hilton Grand Vacations (HGV - Get Report) , its timeshare business, and Park Hotels & Resorts (PK - Get Report) , its portfolio of hotels and resorts, early last month.
Wall Street is looking for Choice Hotels to report fourth quarter earnings of 53 cents a share, slightly higher than last year's 51 cents a share, and revenue of $224.5 million, compared to last year's $211 million.
Growth in travel, particularly corporate related, spiked in 2016 and MKM Partners analyst Christopher Agnew expects that growth to continue, benefiting hotel companies as more travel means more bookings.
"Following the November U.S. presidential election, travel stocks have rebounded sharply," Agnew said in a recent research note.
Telsey Advisory Group analyst David Katz told TheStreet in an earlier interview that he expects the hotel industry to boom under President Trump, who has claimed throughout his campaign, and maintains still, that he will drive job creation at home by cutting taxes and regulations for U.S. businesses.
In a note published Tuesday morning, Agnew said he also anticipates timeshare stocks to "continue to outperform," as they are "U.S. centric, leisure-focused businesses" and MKM "believes leisure trends will remain strong on the back of strong employment, rising wages and strong consumer confidence."
In 2016, Hilton expanded its presence in 91 out of the 104 countries it does business in including in Canada, the United Arab Emirates, Russia and China. The company also tacked on a 14th brand to its portfolio, a line of upscale hotels called Tapestry Collection by Hilton.
Germany-based research firm Berenberg estimated in early January that Hilton could return $3.8 billion to shareholders over the next three years.
Marriott which has been "tied up" with its Starwood merger this year, as Telsey's Katz put it, announced in November that it would keep all of the 30 brands from both companies under its umbrella.
Despite being preoccupied with its merger, late last month, Marriott announced that it opened a record 55,000 rooms in 2016, excluding the 381,000 rooms it gained from Starwood. The company now operates more than 6,000 hotels with nearly 1.2 million rooms in 90 countries.
Choice Hotels, with more than 6,400 hotels franchised in more than 40 countries and territories, said in September that it added 745 properties to its developmental pipeline.
Shares of Marriott, Hilton and Choice Hotels are slightly lower at $87.36, $58.81 and $57, respectively, early in today's afternoon trading.