Choice Hotels(CHH) - 2024 Q4 - Annual Results

Financial Performance - Net income for full-year 2024 increased 16% to $299.7 million, with diluted EPS of $6.20, a 22% increase compared to 2023[1] - Adjusted EBITDA for full-year 2024 reached a record $604.1 million, up 12% from the previous year[1] - Total revenues for Q4 2024 reached $389.77 million, a 8.7% increase from $358.40 million in Q4 2023[27] - Adjusted net income for Q4 2024 was $75.80 million, compared to $28.95 million in Q4 2023, reflecting a significant increase[27] - Adjusted earnings per share (EPS) for Q4 2024 was $1.62, up from $0.58 in Q4 2023[27] - EBITDA for the year ended December 31, 2024, was $463.77 million, compared to $375.03 million for the previous year, indicating a strong operational performance[27] - Net income for the year ended December 31, 2024, increased to $299,665,000, up from $258,507,000 in 2023, representing a growth of 15.9%[31] - For the full year 2024, Adjusted Net Income reached $332,359,000, compared to $311,541,000 in 2023, marking a 6.7% growth[43] Revenue Metrics - Domestic revenue per available room (RevPAR) grew by 4.5% for Q4 2024, outperforming the industry by 90 basis points[1] - Domestic average daily rate (ADR) increased by 3.1% and occupancy levels rose by 80 basis points in Q4 2024[5] - Average Daily Rate (ADR) for the total domestic hotel system increased to $96.67 for the year ended December 31, 2024, compared to $96.92 in 2023, a decrease of 0.3%[34] - Revenue per available room (RevPAR) for the total domestic hotel system increased to $54.54 for the year ended December 31, 2024, compared to $55.19 in 2023, a decrease of 1.2%[34] Growth and Expansion - The global net rooms system size increased by 3.3%, with a 4.3% growth in the domestic upscale, extended stay, and midscale portfolio[1] - The company opened 407 hotels globally in 2024, a 21% increase compared to 2023[1] - The global pipeline as of December 31, 2024, was over 97,000 rooms, with nearly 83,000 rooms being domestic[9] - Total number of hotels increased to 7,586 with 653,810 rooms as of December 31, 2024, compared to 7,527 hotels and 632,986 rooms in 2023, reflecting a growth of 0.8% in hotels and 3.3% in rooms[39] Future Projections - Full-year 2025 net income is projected to be between $288 million and $300 million[4] - Adjusted diluted EPS for full-year 2025 is expected to range from $6.98 to $7.24[10] - The company projects Adjusted EBITDA for 2025 to be between $625,000,000 and $640,000,000[46] - The estimated Adjusted Net Income for 2025 is projected to be between $333,000,000 and $345,000,000[46] - The projected Diluted EPS for 2025 is expected to range from $6.04 to $6.29[46] Shareholder Actions - The company repurchased 3.1 million shares for $382.1 million during full-year 2024, representing 6% of its market capitalization[4] Assets and Liabilities - The company reported a total of 2,530.53 million in total assets as of December 31, 2024, an increase from 2,394.80 million in 2023[29] - The company’s long-term debt increased to $1.77 billion in 2024 from $1.07 billion in 2023, reflecting strategic investments and expansions[29] - Cash and cash equivalents at the end of the period increased to $40,177,000 as of December 31, 2024, from $26,754,000 in 2023[31] - Net cash provided by operating activities for the year ended December 31, 2024, was $319,403,000, compared to $296,554,000 in 2023, an increase of 7.7%[31] - Investments in owned hotel properties for the year ended December 31, 2024, totaled $106,750,000, up from $68,560,000 in 2023, representing a significant increase of 55.7%[31] - Net cash used in investing activities decreased to $84,571,000 for the year ended December 31, 2024, from $265,626,000 in 2023, indicating a reduction of 68.2%[31] Operational Costs - The company reported a net reimbursable deficit from franchised and managed properties of $13,559,000 for the year ended December 31, 2024[43] - Operational restructuring charges for the full year 2024 amounted to $4,296,000, slightly up from $4,216,000 in 2023[43] - The company incurred global ERP system implementation costs of $1,041,000 for the year ended December 31, 2024[43] - The company anticipates interest expense for 2025 to be between $87,200,000 and $88,200,000[46]