Choice Hotels International Reports First Quarter 2024 Results
- Record Global Rooms Pipeline, up 10% Sequentially including a 36% Increase for Conversion Hotels
- Repurchases $196.6 Million of Common Stock Year-to-Date through April 30, 2024
- Relaunches Park Inn by Radisson
NORTH BETHESDA, Md. – Choice Hotels International, Inc. (NYSE: CHH), one of the world's leading lodging franchisors, today reported its first quarter 2024 results.
Highlights include:
- Net income was $31.0 million for first quarter of 2024, representing diluted earnings per share (EPS) of $0.62. As a result of one-time items, including due diligence and transaction pursuit costs, and the timing of net reimbursable expenses, net income and diluted EPS were 41% and 39% lower, respectively, for first quarter 2024 compared to the same period of 2023.
- First quarter 2024 adjusted net income, excluding certain items described in Exhibit 7, increased 9% to $63.7 million compared to the same period of 2023, and adjusted diluted EPS increased 14% to a first quarter record of $1.28 compared to the same period of 2023.
- Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for first quarter 2024 grew to $124.3 million, a first quarter record and a 17% increase compared to the same period of 2023.
- Global pipeline as of March 31, 2024, increased 10% to a company record of over 115,000 rooms from December 31, 2023, including a 36% increase in the global pipeline for conversion rooms. Domestic rooms pipeline as of March 31, 2024, increased by 11% since December 31, 2023, highlighted by a 59% increase for conversion rooms.
- In March 2024, the company's Board of Directors approved an increase in the number of shares authorized under its share repurchase program by 5 million shares. The company has repurchased 1.5 million shares of common stock for $196.6 million year-to-date through April 30, 2024.
- In April 2024, the company further strengthened its revenue-intense portfolio by relaunching Park Inn by Radisson, a premium conversion brand for the value-conscious traveler positioned just below the Quality Inn brand, with the brand's first opening expected in third quarter 2024.
- The company increased its guidance for diluted EPS and reiterated its guidance for net income, adjusted EBITDA, and adjusted diluted EPS for full-year 2024.
Building on our record 2023 financial results, we drove first quarter performance to new levels, with adjusted EBITDA and EPS increasing by 17% and 14%, year-over-year, respectively,"
said Patrick Pacious, President and Chief Executive Officer. These impressive results demonstrate that we are unlocking the revenue synergies from the Radisson Americas acquisition, which has meaningfully enhanced our growth profile and opened new incremental earnings streams. Looking ahead, we are confident that our versatile business model with multiple drivers positions us well to deliver continued earnings growth and create shareholder value.
