Q2 2024 Choice Hotels International Inc Earnings Call Transcript
Key Points
- Choice Hotels International Inc (CHH) reported a record adjusted EBITDA of $161.7 million for the second quarter, marking a 6% year-over-year growth.
- The company increased its domestic franchise agreements for revenue-intense brands by 8% year-over-year, indicating strong growth potential.
- Choice Hotels International Inc (CHH) achieved a 22% year-over-year increase in its global pipeline, setting a record with approximately 115,000 rooms.
- The company successfully integrated the Radisson Americas portfolio, contributing to a 5% increase in adjusted EPS year-over-year.
- Choice Hotels International Inc (CHH) expanded its international portfolio, doubling its international EBITDA over the past two years and increasing its international rooms by 1.6% year-over-year.
- The company lowered its full-year domestic RevPAR guidance to a range of negative 1.5% to negative 3.5%, reflecting a slower-than-anticipated pace of acceleration.
- Despite strong performance, the domestic RevPAR was down 50 basis points year-over-year, with a 60 basis point decline in average daily rates.
- The pace of acceleration in domestic RevPAR was slower than expected, leading to moderated expectations for the remainder of the year.
- Interest rates remain elevated, impacting the new construction pipeline, with 80% of openings being conversions.
- The company faces challenges in the hotel development environment, with construction costs starting to normalize but hotel financing still constrained by high interest rates.
Ladies and gentlemen, thank you for standing by. Welcome to Choice Hotels International's second quarter 2024 Earnings Call. (Operator Instructions) I will now turn the conference over to Allie Summers, Investor Relations, Senior Director for Choice Hotels.
Good morning, and thank you for joining us today. Before we begin, we would like to remind you that during this conference call, certain predictive or forward-looking statements will be used to assist you in understanding the company and its results. Actual results may differ materially from those indicated in forward-looking statements and you should consult the company's Forms 10-Q, 10-K and other SEC filings for information about important risk factors affecting the company that you should consider.
These forward-looking statements speak as of today's date, and we undertake no obligation to publicly update them to reflect subsequent events or circumstances. You can find a reconciliation of our non-GAAP financial measures referred
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