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).

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 potential of Travel + Leisure Co. (NYSE:TNL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.