Travel + Leisure Co. (TNL) Surged Due to the Strengthening of the Value Proposition of the Timeshare Industry

TCW funds, an investment management company, released its “TCW Global Real Estate Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund (I Share) returned +2.37% in the quarter compared to +4.50% for the S&P Global REIT Index. The overweight allocation in Diversified Real Estate Activities had a favorable impact on the fund’s relative performance in the quarter, while the overweight in Telecom Tower REITs had a negative effect. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TCW Global Real Estate Fund highlighted stocks such as Travel + Leisure Co. (NYSE:TNL). Travel + Leisure Co. (NYSE:TNL) hospitality services and travel products company that operates in Vacation Ownership and Travel and Membership segments. The one-month return for Travel + Leisure Co. (NYSE:TNL) was 6.50%, and its shares gained 44.96% over the last 52 weeks. On December 26, 2025, Travel + Leisure Co. (NYSE:TNL) stock closed at $72.54 per share, with a market capitalization of $4.716 billion.

TCW Global Real Estate Fund stated the following regarding Travel + Leisure Co. (NYSE:TNL) in its third quarter 2025 investor letter:

“Our best performing securities for the quarter were Travel + Leisure Co. (NYSE:TNL) (TNL; 2.85%**; Hotels Resorts & Cruise Lines) and Merlin Properties SOCIMI, S.A. (MRL; 4.10%**; Diversified Reits).

TNL is a membership and leisure travel company, with two reporting segments:(1) Vacation Ownership (i.e. timeshare), and (2) Travel and Membership (T&M). Vacation Ownership is the company’s core time share business with over 800,000 owners and more 245 vacation club locations. The Travel and Membership segment includes RCI, a timeshare network with 3.5m members. The segment also includes affiliated resorts and B2B travel benefits and solutions. The value proposition of the timeshare industry relative to hotels has strengthened considerably in recent years. Since the pandemic, hotel room rates are up by one-third while timeshare prices are up only mid-single digits. This has helped bolster close rates. Timeshares rely on the securitization market to sell their receivables from owner financing. The demand for these products has improved over the past year, allowing TNL to generate higher spreads.”

Is Travel + Leisure Co. (TNL) The Best Travel Stock To Buy Right Now?

Travel + Leisure Co. (NYSE:TNL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held Travel + Leisure Co. (NYSE:TNL) at the end of the third quarter, up from 30 in the previous quarter. In Q3 2025, Travel + Leisure Co. (NYSE:TNL) reported revenues exceeding $1 billion, adjusted EBITDA of $266 million, and adjusted earnings per share of $1.80, all showing significant year-over-year growth. While we acknowledge the risk and potential of Travel + Leisure Co. (NYSE:TNL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Travel + Leisure Co. (NYSE:TNL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.