Choice Hotels International has reported a net income of $28.95m in the fourth quarter (Q4) of 2023, marking a 47.84% decrease from $55.51m in the same quarter of 2022.
For the quarter ending 31 December 2023, total revenue reached $358.39m, down by 0.99%, from $361.98m in the corresponding period of 2022.
Total operating expenses for the fourth quarter increased to $316.91m, up from $284.70m in Q4 2022.
The basic earnings per share (EPS) for Choice Hotels fell to $0.58 from $1.05, and diluted EPS decreased to $0.58 from $1.04 in the fourth quarter of the previous year.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter rose to $125.02m from $112.50m.
The total revenue per available room (RevPAR) for the fourth quarter was $48.36, a decrease from $50.33 in Q4 2022.
The occupancy rate in Q4 2023 was 52.8%, down from 54.1% in the same quarter of the previous year.
For the entire year of 2023, Choice Hotels recorded a net income of $258.50m, a decline from $332.15m in 2022.
The total revenue for the year stood at $1.54bn, up from $1.40bn in 2022.
The adjusted EBITDA for the full year increased to $540.45m from $478.56m in the previous year.
Total RevPAR in Q4 2023 was $55.21 compared with $55.16 in Q4 2022, while the occupancy rate was 57.0% for the recorded quarter and 58.0% in the same period a year ago.
Basic EPS for the full year 2023 was reported at $5.11, down from $6.05 in 2022, and diluted EPS was $5.07 compared with $5.99 the previous year.
The company's global pipeline as of 31 December 2023, increased by 6% to more than 105,000 rooms from 30 September 2023.
Global pipeline for conversion rooms increased by 16% from 30 September 2023, and 34% from 31 December 2022.
Choice Hotels International president and CEO Patrick Pacious said: “Our superior hotel conversion capability increased the velocity of new hotel openings and is a clear advantage in today's hotel development environment.
“The positive momentum created by our successful strategy gives us confidence in our 2024 outlook and beyond.”
Looking ahead to the full year 2024, Choice Hotels anticipates net income to be between $260m and $274m while adjusted EBITDA is expected to be between $580m and $600m.
