Core Insights - Choice Hotels International reported a record financial performance for Q1 2025, demonstrating effective execution of its growth strategy and outperforming peers in the market [3][4][7] Financial Performance - Total revenues for Q1 2025 were $333 million, slightly up from $332 million in Q1 2024 [4] - Net income increased by 44% to $45 million, with diluted earnings per share (EPS) rising to $0.94, a 52% increase year-over-year [7] - Adjusted EBITDA reached a record $130 million, up 4% from $124 million in Q1 2024 [7] - Revenue excluding reimbursable costs was $209 million, compared to $203 million in the previous year [4] System Size and Development - The global net rooms system size grew by 2.8% to 647,587 rooms, with a 3.9% increase in the revenue-intense portfolio [5][7] - Domestic rooms increased by 2.3% to 505,601, while international rooms grew by 4.4% to 141,986 [5] - The domestic extended stay segment saw a significant 10.8% increase in net rooms compared to the previous year [7] Revenue Metrics - Domestic revenue per available room (RevPAR) increased by 2.3%, outperforming the chain scales by 60 basis points [7] - The extended stay portfolio's RevPAR rose by 6.8%, exceeding industry performance by 410 basis points [7] - Average daily rate (ADR) grew by 1.7%, with occupancy levels increasing by 30 basis points [8] Partnership Services and Fees - Partnership services and fees increased by 28% to $25.4 million compared to Q1 2024 [8] Balance Sheet and Liquidity - As of March 31, 2025, the company had total available liquidity of $593.8 million, with a net debt leverage ratio of 3.0 times [11] - Cash flows from operating activities were $20.5 million, an increase of $18.7 million from the previous year [11] Shareholder Returns - The company paid cash dividends totaling $13.5 million and repurchased 456,000 shares for $64.6 million during Q1 2025 [12] Outlook - The company adjusted its outlook for 2025, expecting domestic RevPAR growth of -1% to 1%, down from the previous estimate of 1% to 2% [14]

Core Insights - Choice Hotels (CHH) is expected to report quarterly earnings of $1.38 per share, reflecting a 7.8% increase year-over-year, with revenues projected at $347.14 million, a 4.6% increase from the previous year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Revenue Projections - The consensus estimate for 'Revenues- Other revenues from franchised and managed properties' is $172.35 million, indicating a 4.7% year-over-year increase [4] - 'Revenues- Royalty, licensing and management fees' are expected to be $108.35 million, reflecting a 2.7% increase year-over-year [4] - 'Revenues- Owned Hotels' is projected to reach $26.46 million, marking a 5.9% increase from the year-ago quarter [4] - 'Revenues- Initial franchise fees' are estimated at $6.83 million, showing a 1.8% year-over-year change [5] - 'Revenues- Platform and procurement services fees' are expected to be $17.19 million, indicating a significant 25% increase year-over-year [5] - 'Revenues- Other revenues' are projected at $14.88 million, suggesting a 9% decrease year-over-year [5] Key Metrics - Analysts predict the 'Average Daily Rate (ADR)' will be $89.17, slightly down from $89.23 in the same quarter last year [6] - 'Total Franchise Rooms' are expected to reach 645,219, up from 630,128 in the same quarter of the previous year [6] - 'Occupancy' is forecasted at 51.2%, an increase from 50.7% reported in the same quarter last year [6] - 'Rooms - Domestic Franchises' are estimated at 512,189, compared to 494,096 a year ago [7] - 'RevPAR' is projected to be $45.68, up from $45.24 in the same quarter last year [7] Stock Performance - Shares of Choice Hotels have increased by 6.8% over the past month, compared to a 10.6% increase in the Zacks S&P 500 composite [7]

"Reaching more than 400 properties in the Ascend Collection is more than a milestone; it's a clear signal of the growing opportunity for owners," said Mark Shalala, Senior Vice President, Development, Upscale Brands, Choice Hotels International. "The collection's expansion, particularly into new and exciting destinations like Chile, positions us even better to raise brand awareness and help drive more bookings and revenue potential for owners. With the benefits of being part of Choice Hotels' fast accelerat ...

Core Insights - Choice Hotels is enhancing its breakfast offerings to meet the expectations of upper midscale hotel guests, focusing on value for both owners and guests [1][6] - The company has introduced sharpened brand positioning and refreshed prototypes for Comfort and Country Inn & Suites to create more revenue-generating spaces [1][2] - A partnership with Entegra has resulted in an average 9% savings on food costs for participating hotels, demonstrating a commitment to cost-effective and appealing menu options [3] Breakfast Innovations - The Comfort brand will pilot a Build Your Own Breakfast Bowl concept, allowing guests to customize their meals with various ingredients [4] - Country Inn & Suites will introduce Pillsbury biscuit sandwiches as a new breakfast option for guests [5] - Breakfast offerings will include Florida's Natural orange juice and General Mills cereals, aligning with guest expectations for quality [6] Owner Collaboration - Choice Hotels emphasizes an owner-first approach, collaborating with owners and leveraging Entegra's relationships with food providers to secure favorable pricing [3] - The company is actively involving franchise owners in the development of new food offerings through real-time feedback in the Entegra Performance Kitchen [3]

Choice Hotels geht mit einer kühnen digitalen Transformationsstrategie voran, die darauf abzielt,das Gästeerlebnis zu verbessern, Franchisenehmer zu unterstützen und Abläufe zu rationalisieren  AMSTERDAM, 25. April 2025 /PRNewswire/ -- Choice Hotels International führt Mews als Option für ein Property Management System (PMS) für internationale Franchisenehmer ein. Die Plattform ist so gestaltet, dass sie mit den firmeneigenen Tools und Systemen von Choice Hotels verbunden werden kann. Sie nutzt das PMS von ...

Choice Hotels continues to lead the way with a bold digital transformation strategy designed to enhance guest experiences, empower franchisees and streamline operations AMSTERDAM, April 24, 2025 /PRNewswire/ -- Choice Hotels International is introducing Mews as a property management system (PMS) option for international franchisees. The platform is designed to connect with Choice Hotels' proprietary tools and systems using Mews' PMS for enterprise-scale hospitality brands and offers robust integrations, int ...

Core Viewpoint - The outlook for U.S. Lodging C-Corps and Timeshares has been downgraded due to weaker consumer demand, geopolitical uncertainty, and negative impacts from U.S. airlines, leading to a reduction in 2025 RevPAR forecasts by approximately 125 basis points [1] Group 1: Market Conditions - A 45% probability of a U.S. recession is assumed, although not fully factored in, with a focus on asset-light companies that have global exposure and less reliance on U.S. resorts [2] - The preference is for stocks with more global diversity, lower U.S. resort exposure, asset-light business models, and stronger prospects for non-RevPAR and ancillary revenues in a choppier macro environment [3] Group 2: Historical Context - Historical data indicates that lodging revenue growth is cyclical, with significant downturns during previous recessions, where business demand impacts leisure travel first, and premium chains experience larger RevPAR declines than economy chains [4] - Hotel C-Corps have transitioned to asset-light, fee-based business models over the past decade, which have shown resilience during downturns, as franchise revenues tend to perform better than owned/leased or timeshare revenues [4] Group 3: Company-Specific Updates - Choice Hotels International Inc (CHH) was upgraded from Sell to Buy, with a price forecast lowered from $141 to $138, due to its defensive position driven by franchise revenue structure and strong balance sheet [6] - CHH is less affected by current macroeconomic challenges compared to other U.S. lodging companies, with improving trends in consumer purchase intent and performance among lower-income segments [7] - Hyatt Hotels Corporation (H) was downgraded from Neutral to Sell, with a price forecast lowered from $150 to $110, due to higher macro sensitivity and significant exposure to China [8] - Hilton Worldwide Holdings (HLT) and Marriott International Inc (MAR) were downgraded from Buy to Neutral, with price forecasts lowered from $296 to $235 and from $313 to $245, respectively, due to macro volatility and consumer pressures impacting macro-sensitive segments [9][10] - Both HLT and MAR have strong business models but face high valuations compared to historical cycles, with consensus estimates for IMF and non-RevPAR fees considered too optimistic [11]

Core Viewpoint - Choice Hotels International, Inc. (CHH) is experiencing growth driven by steady unit expansion, a strong global pipeline, and rising demand across its portfolio, although concerns about the macroeconomic environment persist [1] Growth Catalysts for CHH Stock - Solid business travel demand is evident, with business travel accounting for approximately 40% of total revenues in 2024 and a 14% growth in the business transient segment in Q4 [2] - Continued strength in business travel is expected for 2025, supported by higher group bookings and sustained demand in the business transient segment [3] - The company is effectively executing its unit growth strategy, focusing on both domestic and international expansion [3] Development and Pipeline - In 2024, CHH achieved a 36% year-over-year increase in domestic upscale franchise agreements awarded, with a global pipeline of 964 hotels (approximately 97,325 rooms) as of December 31, 2024 [4] - About 88% of the pipeline is located in the United States, with nearly 71% dedicated to new construction projects [4] Strengthening Rewards and Partnerships - The rewards program grew to 69 million members in 2024, reflecting an 8% year-over-year increase, marking the highest organic enrollment in a year [6] - Strategic partnerships, including a collaboration with Westgate Resorts, added over 14,000 rooms to the domestic portfolio, enhancing offerings [6] Concerns for Choice Hotels Stock - Despite outperforming the Zacks Hotels and Motels industry year-to-date, CHH stock has declined by 12%, while the industry saw a drop of 16.8%, primarily due to market volatility and discretionary spending concerns [10] - Uncertain financial conditions, rising interest rates, and intense competition are additional challenges facing the company [11]

"MasteryX is more than just a conference — it's a launchpad for the future of hospitality technology," said Brian Kirkland, Chief Information Officer, Choice Hotels International. "By upskilling our engineers in AI and emerging tech, we're ensuring that Choice Hotels remains a leader in innovation, continuously delivering smarter, more efficient solutions for our franchisees and guests. Mastery is part of our innovation culture, enabling us to provide reliable, cutting-edge tools designed to help owners gen ...

Company Overview - Choice Hotels International, Inc. is one of the largest lodging franchisors globally, operating over 7,500 hotels with more than 650,000 rooms across 46 countries and territories [3] - The company has a diverse portfolio of 22 brands, catering to various market segments from full-service upper upscale properties to midscale, extended stay, and economy options [3] - Choice Hotels offers the Choice Privileges rewards program and co-brand credit card options, providing members with opportunities to earn reward nights and personalized perks [3] Investor Relations - A teleconference is available for participation, with specific dial-in numbers provided for domestic and international callers [1] - The call will be recorded and accessible for replay on the investor relations website within 24 hours, ensuring that stakeholders can review the information shared [2]