Choice Hotels International reported a net income of $87.13m in the second quarter (Q2) of 2024, marking a 3% increase from $84.71m in Q2 2023.
Basic earnings per share (EPS) rose from $1.82 to $1.66 over this period, and diluted EPS increased from $1.80 to $1.65.
For the quarter ending 30 June 2024, the company generated a total revenue of $435.15m, up about 2% from $427.42m a year earlier.
Operating income stood at $132.62m in Q2 2024, compared with $124.38m in Q2 2023.
Choice Hotels also kept its costs under control, with operating expenses decreasing to $302.53m in Q2 2024 from $303.03m in the prior year.
The company’s revenue per available room (RevPAR) fell 0.5% to $60 in Q2 2024 while occupancy improved to 60.3% from 60.2% in Q2 2023.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) were $161.74m, up from $153.10m in Q2 2023.
The global pipeline expanded by 22% to a record 114,000 rooms, with growth in conversion rooms.
The domestic pipeline grew by 11%, with conversion rooms increasing by 65%.
Global hotel openings rose 20% year-over-year, and domestic franchise agreements for upscale, extended stay, and midscale brands increased 8% year-to-date.
Choice Hotels International president and CEO Patrick Pacious, said: “Choice Hotels generated another quarter of record financial performance amid a normalising domestic RevPAR environment, demonstrating the strength of our versatile business model and proven growth strategy.
“We increased our global pipeline to new levels propelled by robust demand for our brands, accelerated the velocity of our global hotel openings, expanded our international reach, and significantly grew the size of our rewards programme. With our meaningfully enhanced hotel portfolio profile, we are confident in the company's ability to continue to deliver sustained earnings growth, invest in profitable long-term growth initiatives, and return significant capital to shareholders.”
For the first quarter (Q1) of 2024, the company’s net income was $31.01m and total revenue was $331.94m.
Its net income in the first half (H1) of 2024 totalled $118.14m, down from $137.53m in H1 2023.
Total revenue for H1 2024 was $767.10m, up from $760.21m in the previous year, while operating income decreased to $192.77m from $202.24m.
Choice Hotels projects a full-year net income of $260m to $272m, with adjusted EBITDA expected to be between $580m and $600m.
