Choice Hotels International Reports First Quarter 2025 Results

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]