Travel + Leisure Co. (TNL) 2Q26 Review: Solid beat and raise with undemanding valuation; Maintain Buy

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Travel + Leisure Co. (TNL) 2Q26 Review: Solid beat and raise with undemanding valuation; Maintain Buy

Goldman Sachs Travel + Leisure Co. (TNL)

lower y/y excluding the impact of the acquisitions. However, the provision associated

with the acquired companies is higher, and TNL therefore expects the consolidated

loan loss provision rate to be approximately 21%. We slightly raise our estimate and

now model 20.9% (from 20.4% prior) vs. 20.7% in 2025.

n New owner mix. After ticking below prior-year levels in 1Q, new owner mix

improved in 2Q, up slightly y/y with healthy transaction volume and close rates.

Tours also grew +1% y/y, supported by continued new owner acquisition. We now

model 2026 Vacation Ownership EBITDA growth of +12.9% y/y (from +10.1% y/y).

#2. Expanded portfolio. TNL raised its full year EBITDA guidance by $32.5mn at the

midpoint, reflecting its strong 1H performance as well as the expected contribution

from its ~$340mn acquisition of Yes& Vacations and Spinnaker Resorts (announced on

July 15). Within the transaction, TNL highlighted the following:

n New resorts and owners. The two acquisitions add 23 resorts, including 6

properties in Hilton Head and 7 in Maui, more than offsetting the recent strategic

resort closures. The deal also brings in more than 100k owners, expanding TNL’s

current owner base by more than 10%. These owners are similar in age and average

income to TNL’s owner base, and about 80% have fully paid off their timeshare loan,

creating a sizable pool for future upgrade activity.

n EBITDA contribution and synergies. Management expects the acquisitions to

contribute approximately $15mn to $20mn of incremental EBITDA for the remainder

of 2026, and a $50mn EBITDA run rate in the first twelve months. Cost synergies