Choice Hotels International ( (CHH) ) has released its Q3 earnings. Here is a breakdown of the information Choice Hotels International presented to its investors.
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Choice Hotels International, Inc., a prominent lodging franchisor, operates a diverse portfolio of over 7,500 hotels across 45 countries, offering a range of accommodations from upscale to economy options.
In its third quarter 2024 earnings report, Choice Hotels International announced a record total revenue of $428.0 million, marking a 1% increase from the previous year. The company also reported a significant 15% rise in net income, reaching $105.7 million, with diluted earnings per share growing by 23% year-over-year.
Key financial highlights include a 14% increase in adjusted EBITDA, reaching a new quarterly high of $177.6 million. The global pipeline expanded by 11%, with a notable 54% rise in conversion rooms. Additionally, the company reported a 75% increase in global hotel openings compared to the same period in 2023, reflecting its strategic growth initiatives.
Despite a decline in domestic RevPAR, Choice Hotels continued to demonstrate financial robustness through increased royalty rates and a substantial share repurchase program, acquiring 2.9 million shares year-to-date. The company’s liquidity position remains strong with $675.6 million available.
Looking ahead, Choice Hotels has raised its guidance for net income, adjusted EBITDA, and EPS for the full year 2024, underscoring management’s confidence in sustaining positive financial performance and strategic growth across its portfolio.
