Q3 2024 Choice Hotels International Inc Earnings Call Transcript
Key Points
- Choice Hotels International Inc (CHH) reported a 14% increase in adjusted EBITDA and a 23% increase in adjusted EPS year over year.
- The company raised its full-year adjusted net income and EPS guidance, reflecting strong performance.
- CHH's global hotel pipeline reached a record of over 110,000 rooms, with a significant 11% year-over-year increase.
- The Radisson Americas brands showed a 10% year-over-year increase in the number of rooms in the pipeline, with a 53% increase in new construction rooms.
- CHH's extended-stay segment grew by over 10% year over year for five consecutive quarters, with over 350 hotels in the pipeline.
- Domestic RevPAR was down 2.5% year over year, partly due to calendar shifts and Hurricane Debby.
- The company expects a deficit of just under $40 million in its marketing fund for the year.
- There has been an increased need to use key money on more deals due to a competitive environment and tougher new construction conditions.
- The midscale and upper midscale segments underperformed compared to STR's flat performance, primarily due to regional factors.
- The company anticipates a similar level of capital investment in 2025 as in 2024, which may impact free cash flow.
Ladies and gentlemen, thank you for standing by. Welcome to Choice Hotels International's third 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'd 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 Form s 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
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