Choice Hotels (CHH) Reports Q2 Earnings: What Key Metrics Have to Say

Core Insights - Choice Hotels reported revenue of $435.16 million for the quarter ended June 2024, reflecting a 1.8% increase year-over-year, but fell short of the Zacks Consensus Estimate of $441.3 million by 1.39% [1] - The company's EPS was $1.84, an increase from $1.75 in the same quarter last year, but also missed the consensus estimate of $1.87 by 1.60% [1] Revenue and Earnings Performance - Revenue growth was 1.8% year-over-year, but below analyst expectations [1] - EPS increased to $1.84 from $1.75 year-over-year, but did not meet the consensus estimate [1] Key Metrics Analysis - RevPAR growth was -0.5%, compared to an estimated growth of 1% [3] - Actual RevPAR was $60, below the average estimate of $61.34 [4] - Domestic franchise rooms totaled 494,083, slightly below the estimate of 494,202 [5] - Occupancy rate was 60.3%, lower than the average estimate of 61.2% [6] - Total franchise rooms were 631,063, compared to the estimated 637,294 [7] - Average Daily Rate (ADR) was $99.46, below the estimated $100.52 [8] Revenue Breakdown - Other revenues from franchised and managed properties were $215.20 million, below the estimate of $221.21 million, but showed a 0.4% increase year-over-year [9] - Royalty, licensing, and management fees were $141.81 million, compared to the estimate of $144.67 million, reflecting a 0.9% year-over-year increase [10] - Revenues from owned hotels reached $28.42 million, exceeding the estimate of $26.57 million, with an 11.4% year-over-year increase [11] - Initial franchise fees were $6.56 million, below the estimate of $7.34 million, representing an 8.4% decrease year-over-year [12] - Platform and procurement services fees were $28.13 million, below the estimate of $29.46 million, with a 2.3% year-over-year decrease [13] - Other revenues were $15.04 million, exceeding the estimate of $12.82 million, showing a significant 34.9% year-over-year increase [14] Stock Performance - Shares of Choice Hotels have returned +2.2% over the past month, outperforming the Zacks S&P 500 composite, which declined by -6.5% [14] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [14]