Choice Hotels Raises Full-Year Guidance After Strong Q2

Earnings

โดย The Motley Fool·

Summary · why it matters

Choice Hotels International reported second-quarter adjusted EBITDA of $175 million, up 6% year over year, and raised its full-year guidance for adjusted EBITDA, RevPAR, and net rooms growth. Adjusted diluted EPS rose 5% to $2.02, while total revenue was $441 million, including $163 million in reimbursable revenue from franchised and managed properties. U.S. RevPAR grew 1.3%, driven by a 0.7% increase in average daily rate and a 40 basis point increase in occupancy, with the FIFA World Cup contributing approximately 60 basis points. Global net rooms grew 2.6% year over year, supported by 3.6% growth in higher revenue extended stay, midscale, and upscale brands, and U.S. room openings increased 27% to 6,400 rooms, the highest second-quarter level since 2019. The company now expects full-year adjusted EBITDA of $635 million to $650 million, U.S. RevPAR growth of 0% to 1.25%, global RevPAR growth of 0% to 1%, and global net rooms growth of approximately 1.5%, up from a prior expectation of approximately 1%. Adjusted diluted EPS guidance was updated to $6.86 to $7.10, reflecting higher expected interest expense and a 26% effective tax rate. Choice also said it expects the first disposition of its wholly-owned hotels to occur in the first half of 2027, subject to market conditions, as it transitions to a pure-play asset-light model.

Choice Hotels International Inc ▲