Choice Hotels Reports Strong Q3 Earnings

NORTH BETHESDA, Md. – Choice Hotels (NYSE:CHH) International, Inc. reported better-than-expected third-quarter earnings on Monday, fueled by record revenues and significant growth in its global hotel pipeline. The company also raised its full-year 2024 guidance.

Choice Hotels posted adjusted earnings per share of $2.23 for Q3, exceeding analyst estimates of $1.92. This marks a 23% increase from the same period last year. Total revenues hit a quarterly record of $428 million, reflecting a 1% YoY increase, albeit slightly below the consensus estimate of $432.62 million.

The company's net income rose 15% to $105.7 million for the quarter, while adjusted EBITDA grew 14% to a record $177.6 million.

"Choice Hotels generated another quarter of record financial performance, demonstrating the successful execution of our growth strategy and giving us the confidence to raise our full-year guidance," said Patrick Pacious, President and CEO.

The global pipeline expanded 11% YoY to over 110,000 rooms as of September 30, with a 54% increase in conversion rooms. Global hotel openings for the quarter surged 75% compared to the same time last year.

Domestic RevPAR decreased 250 basis points for the quarter compared to 2023, although domestic occupancy levels improved by 80 basis points from Q2 of 2024.

Choice Hotels raised its full-year 2024 EPS guidance to $6.70-$6.87, surpassing the analyst consensus of $6.49. The company also enhanced its outlook for net income, adjusted EBITDA, and RevPAR growth.

Year-to-date through September 30, the company repurchased 2.9 million shares for $352.9 million, representing over 6% of its market capitalization at the year’s start.

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